Calling a headhunter quickly is often the first reflex in the boardroom. A departure, whether forced or not, is often unexpected. In our collection “Our council works great”, it is not without reason that employment is called the underrated child. It is also complex to have a good idea of what talents are around in the organization and to prepare for changes. It can also feel very uncomfortable for a sitting CEO if the Supervisory Board wants to talk about your succession. Moreover, in many organizations, the top is narrow; there is not that much choice for internal follow-up.
So much for the excuses.
Because for a supervisory board, good preparation for succession is definitely part of the norm.
It starts with a good view of the top of the organization, the layer below the Executive Board or director. Do you know the people and discuss the development process of these people with the Executive Board. Do you discuss with your own Executive Board the possibility of (emergency) solutions in case of sudden departure or illness? Do you know what it really takes to let the organization go ahead?
Sometimes support is sought from an interim worker. That may be a good solution, but is it considered? Is there also “interim work” to do? Or is the interim employee going to look after the store. Often, the current team also says that they can take it up together on an interim basis. That seems like a nice interim solution. The Supervisory Board gives confidence to the current team; that creates a bond. But do not underestimate that this unleashes forces on the part of the current team that often do not lead to a sustainable solution. A fight for the first position in this interim team can easily arise, or a secret fight to succeed the CEO, with the result that the departments that initially ran well are also affected in management.
In short, it's about switching in the boardroom. The chairman and remuneration committee will have to free up their agendas and communicate very clearly about a transparent and orderly process. Procedural justice, where the organization is involved in, understands and supports the process, is a prerequisite. Then the Supervisory Board will have to carefully consider the various options in light of the organization's strategy. If you know what kind of leadership the company needs for the future, if the strategy is clear, only then can you properly brief a headhunter or weigh your own candidates.
Are there internal candidates? Then alertness is required. Whoever raises their finger but doesn't become one will not hold on to the old position for much longer. Know that this needs to be managed, perhaps by looking at another interesting position that allows someone to be retained for the company.
If employment has remained an underrated child within the Supervisory Board, you will start this process with a considerable backlog. So make sure that the process of evaluating and rewarding is well organized, dare to discuss follow-up and future plans with the Executive Board and make sure that the Supervisory Board discusses follow-up with each other annually and may also have external scans of outside talent done by a headhunter. So do the necessary preliminary work for the follow-up with your colleagues in peace.
After 20 years of supervision, it is my experience that you have to work on a succession at least once during your appointment period at every company. It is always a time-consuming and delicate process. A really well-functioning Supervisory Board ensures that the CEO's arrival and departure go through the red carpet, and that only works if a well-thought-out policy is implemented behind the scenes.
De Bestuurskamer
Inge Brakman
May 2025
