From Reactive to Predictive: Transforming Succession Risks Into Strategic Advantages—A Corporate Board Member/Farient Advisors Report
October 22, 2025
Are boards underestimating the risks tied to sudden executive departures? Corporate Board Member, in collaboration with Farient Advisors, reveals how boards can better prepare for unexpected executive exits in a new report drawing on survey data from nearly 100 board members at large U.S. public companies.
Key Findings for Boards
- 59% of those surveyed say they experienced at least one sudden departure of a top 10 executive in the past two years, even though 72% believe that the likelihood of a recurrence is less than 50%
- Only 41% feel “very well prepared” for sudden departures. Many boards appear to have plans on paper but lack real readiness
- External CEO hires cost about 30% more than internal promotions once special awards are included; yet many boards don’t monitor the broader ripple effects of an executive exit
- Just 51% receive forward-looking turnover projections in their board books, leaving nearly half without visualization of the risk
Why This Matters
Leadership transitions are accelerating. According to the report, CEO departures among S&P 500 firms rose more than 20% in 2024—and early indicators suggest 2025 may exceed that. The data underscores the growing volatility of the executive labor market and the importance of preparation beyond the CEO role. Sudden departures can create ripple effects throughout the C-suite, disrupt strategic initiatives, and draw unwanted scrutiny from investors and stakeholders.
Boards that treat succession as an ongoing process—rather than a contingency plan—are better positioned to maintain business continuity, protect shareholder value, and safeguard organizational culture when unexpected transitions occur.
What Boards Can Do Next
The report outlines an “Implementation Roadmap” covering:
- Immediate (0-90 days): Auditing current plans, introducing turnover dashboards, testing emergency succession protocols
- Mid-term (6-12 months): Developing staggered pipelines for leadership, linking retention to motivation beyond pay
- Long-term (12+ months): Integrating succession into broader talent strategy, adopting predictive analytic capabilities, and embedding into board governance and enterprise risk management
About Farient Advisors
Farient Advisors LLC, a GECN Group Company, is an independent premier executive compensation, performance, and corporate governance consultancy. Farient provides a full array of services linking business and talent strategy to compensation through a tailored, analytically rigorous, and collaborative approach. Farient has locations in Los Angeles, Newport Beach, New York, Louisville, and London and works with clients globally through its partnership in the Global Governance and Executive Compensation (GECN) Group. Farient is a certified diverse company and is recognized by the Women’s Business Enterprise National Council.
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