SUCCESSION PLANNING WITHOUT RETENTION PLANNING IS A HOUSE OF CARDS
CEO succession planning can lead to a great internal successor. However, succession planning should not stop at the CEO. A key component of succession planning is retention planning for key executives and failure to provide comprehensive strategies for key leadership positions can leave the credit union vulnerable. Without a well-developed retention plan for C-suite and other key management positions, a credit union could face significant challenges in filling critical leadership roles. “Proactive, ongoing succession planning for key positions is essential to mitigate these risks and ensure a smooth transition of leadership.”
Key Takeaways
· Succession planning requires retention planning for the CEO and key executives.
· Increased “executive poaching” sabotages successful succession planning and key executives are very expensive to replace. Estimates suggest that it costs between 200% and 400% for every hundred thousand dollars of compensation to replace a highly compensated employee.
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