The post-pandemic CEO departures keep coming, with PayPal CEO Dan Schulman becoming the latest to announce his resignation. Last year, Starbucks’s Howard Schultz declared that he’d be leaving the coffee chain (for the third time) this spring, and Levi’s Chip Bergh is midway through passing the baton.
Deborah Rubin, an organizational psychologist with the leadership consulting firm RHR International, has some advice as more retirements emerge: Don’t neglect the emotional dimension of the transition, a factor that sometimes goes overlooked in even the most detailed succession plans.
No matter the size of a company or the perceived emotional intelligence of its leader, navigating this shift in one’s identity is tough, says Rubin, and when not acknowledged, the stress of transitions can open the door to dark, costly behaviors. In service of their threatened egos, departing CEOs may unwittingly hang on to power for too long. Or, CEOs who feel stretched thin might begin dodging the most taxing duties of their role, leaving an overwhelmed successor to pick up the slack before their first real day on the job.
“Personal frustrations with the pending loss in status and power, along with perceived slights, can lead the current CEO to start criticizing the next leader to the board or other key internal and external stakeholders,” Rubin wrote in a recent blog post aimed at retiring CEOs.
Boards play a role in diffusing potentially damaging tensions, Rubin tells me. They should gently guide CEOs through this emotional landmine by normalizing their feelings and acknowledging it will be hard to say goodbye.
Directors who feel close to a CEO might take the leader out for dinner to chat about what they’re experiencing. These conversations represent a rare opportunity for directors to look backward, celebrating a CEO’s enduring legacy at the firm. (There will be plenty of time to focus on what needs to change in the organization, but this isn’t it.) Asking an outgoing CEO about their next big thing is also smart, says Rubin, who adds, “If you're only leaving, that's a lot more of a toll on the individual than if you're moving toward something.”
Next week's Modern Board will include a special guide for aspiring and new directors about presenting to a corporate board, a critical aspect of the directorship role. If you know someone with boardroom ambitions, let them know to sign up for the entirely free guide here. And if you're on a board and have sat through dozens or hundreds of executive talks, please share your notes! What makes the best presentations stand out? I'd love to offer readers insights from across the Modern Board community. Reach me at: lila.maclellan@fortune.com
Lila MacLellan
lila.maclellan@fortune.com
@lilamaclellan
