Succession Planning for Board and Committee Leaders

The board’s leadership—the designated leaders of a board’s independent directors and committees—plays a stronger role than ever in guiding companies through a disruptive business landscape. NACD’s The Future of the American Board report emphasized that “in a world that seems less governable, the quality of board governance is increasingly vital to the sustainability of our enterprises and trust in our market economy.” To meet these rising demands, boards must be intentional about who sits at their helm—now and in the future. 

NACD survey datashow that many boards do not dedicate sufficient time to succession planning for their own leadership. By proactively and purposely embedding processes to identify and develop future board leaders, boards can ensure the right individuals are prepared to step into leadership roles—and minimize disruptions to the board’s work when vacancies occur, particularly when they are unexpected. However, board succession planning calls for both art and science, requiring a clear strategy while also embracing the nuances of interpersonal relationships, the board’s culture, and changing circumstances.

This Director Essentials provides guidance that will allow boards to effectively plan for the next generation of board and committee leaders. The report’s recommendations were shaped by a working group of five directors serving on public, private, and nonprofit boards; interviews with other experts; and NACD research. Quotes from directors are presented throughout this report in italics and without attribution.