What is the primary role of the board in CEO succession planning?

• A. Oversee CEO succession to ensure leadership continuity.
• B. Handle day-to-day hiring decisions for the CEO.
• C. Design and implement all strategic initiatives personally.
• D. Limit leadership development to high-potential programs only.

Answer: (A)

The main idea is that the board’s job in CEO succession planning is governance-focused oversight to ensure leadership continuity. This aligns with fiduciary duties to protect the company’s long-term value and to mitigate key-person risk by having a formal, well-structured plan for identifying, developing, and selecting a successor. The board sets the framework, approves the succession plan, and ensures there are ready candidates—internal or external—while coordinating with management and ensuring a smooth transition when needed.

Day-to-day hiring decisions are not the board’s function; those are handled by management and human resources, with the board providing approval and guidance rather than conducting every hire. Designing and implementing all strategic initiatives personally is also beyond the board’s role, which is to oversee strategy and governance rather than execute it. Limiting leadership development to only high-potential programs narrows the pipeline; the board should support a comprehensive approach to building leadership depth to maintain continuity.