Both public and private company boards must prioritize CEO succession. Which of the following statements does not accurately reflect a key practice for CEO succession?

Prepare for the NACD Certification Exam with flashcards and multiple choice questions. Each question comes with hints and explanations to aid your understanding. Ensure you are fully ready for your test!

A critical aspect of effective CEO succession planning involves proactive measures to ensure a smooth transition when the time comes. The assertion that boards should "wait to get to know the top CEO candidates since the expected CEO succession timeline can be quite a ways off in the future" does not align with best practices.

Boards must be proactive rather than reactive in their approach to succession. Establishing a timeline for potential successors ensures that the organization is prepared, regardless of when the transition occurs. Regular evaluations of candidates allow boards to track the development and readiness of potential leaders, making it easier to make informed decisions. Involving the outgoing CEO in the succession process leverages their insights and knowledge, which can be invaluable in identifying the right successor and facilitating a smooth transition.

By waiting to familiarize themselves with potential candidates, boards may miss opportunities to groom internal talent or misjudge the capabilities of external candidates, leading to disruptions in leadership continuity. This underscores the importance of proactive engagement in CEO succession planning rather than passivity.

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