“When are you thinking of retiring?” I am used to this question by now. It usually comes up an hour into a meeting with a client prospect for our investment company, often after a shuffling of papers and downward glances. “And what is your plan for succession at the company?”
Communicating Your Succession Plan with Customers, Clients, and Shareholders
When you’re a CEO, questions about your retirement are unavoidable.
November 14, 2018
YASUYOSHI CHIBA/Getty Images
Summary.
CEOs tend to be the face of their organizations, especially at small to mid-sized companies, where they may work with the most important clients, and when they are the founder. Prospects may have been drawn to the company specifically because they heard about the CEO. So customers planning their future with you may want to know about any upcoming retirement plans. CEOs have to anticipate questions about retirement and be proactive in addressing them. The growth of your business may depend on how well you can ensure clients that the company will be fine under your successor’s leadership. Failing to communicate succession plans clearly with clients, workforce, and shareholders can result in internal chaos, loss of current and future business, and decline in stock value. As CEO, it’s your duty to be mindful about client concerns and carefully consider your tenure, transfer of responsibility, retirement timing, and appropriate communication. Failing to do this may put your firm and your ultimate successor at risk.