Communicating through a CEO transition

• "External audiences — investors, customers, regulators — develop a lens through which they look at a company, and over time that lens becomes fixed," said one tech executive who has managed CEO exits. "There are very few times you can break that lens and present a different view, and a CEO transition is one of those moments."

By the numbers: 58 CEOs departed the S&P 500 in 2024, the second-highest number on record, per the Russell Reynolds Index.

• 27 CEOs resigned or were forced out last year by activist investors, and the tech sector saw CEO turnover increase by 90% in 2024, with only 8% appointing experienced CEOs as successors.
• Yes, but: 2024 also saw a record number of leaders promoted from within their organization, with this group making up 73% of all incoming CEOs.

The big picture: Once there are rumblings of a CEO shakeup, experts told Axios that comms teams should prepare plans based on typical successor profiles — an inside hire, a dark horse or outsider, and a known industry leader.

• This allows the communications team to act quickly and show a certain level of competency throughout the transition.

What they're saying: The communications teams should serve as the incoming CEO's barometer of every stakeholder group, says Korn Ferry global managing director Richard Marshall.

• "In effect, the comms team are interpreters of the pulse of the organization — they know the hot-button issues, can identify potential reputational land mines and help frame the new narrative," says Marshall. "To this end, the CCO has an opportunity to serve as a co-architect in shaping the voice and the tone of the new leader."

Zoom in: When communicating a CEO transition, there are a few things to keep in mind, experts told Axios.

1. Explain why there's a transition and acknowledge the work of the outgoing CEO, or, if the executive is being forced out, explain why and lean in on what's next for the company.
2. Create a detailed stakeholder map and communicate with each audience, understanding that some audiences might require a more personalized touch.
3. Establish the first 100 days' narrative. This allows for the incoming CEO to hit the ground running and share early wins with the audiences that matter.
4. Button up comms logistics. Ensure all websites, social media accounts and letterheads are updated. Film videos, plan employee town halls and consider some initial media opportunities.

Of note: Transitioning from a founder to a "professional CEO" is often a major culture shock for employees and requires more comms.

• Regardless, it's important to message the CEO change in a way that complements the company's broader strategic journey.

Between the lines: The chief communications officer is often tied to the rise and fall of the CEO, which could put their employment future at risk.

• "As much as those of us in the field try hard to support our bosses, to serve them, even to represent them, it's really important to remember that at the end of the day, you work for the company, not the person," Pfizer chief corporate affairs officer Sally Susman said at a recent Axios event in Davos, Switzerland.
• "You need to ask yourself, if my boss wasn't here, would my company still see me as an invaluable asset, and I think that is the key to it. It's not about your reporting line, it's about the mission and the mandate of your company."

Zoom out: As executives depart their jobs, they are increasingly hiring outside communications counsel to help shape the narrative.

• "Gone are the days where a departing CEO can rely solely on the communications function that's representing the enterprise, because their job is to protect business continuity, not protect the reputation of the outgoing executive," says Shahed Fakhari Larson, founder and CEO of UNLMTD Partners.
• "An exiting CEO is not just managing for that moment in time, but they're navigating the future of their career and setting themselves up for what's next. ... And typically that's the only communications moment for them to capture the legacy of their work at the company."

The other side: Oftentimes, the outside comms consultants work with the in-house teams but can advocate for legacy-building profile pieces, specific messaging or language in the transition comms plan.

• Plus, this could be a helpful arrangement for in-house CCOs, because it creates a little distance from the exiting leader.
• "It's critical that the CCO act as the ultimate diplomat," says Marshall. "Because, if they're showing loyalty to the outgoing regime, the CCO might not be trusted or pulled into the inner circle of the new group that's taking control. So you really have to play it straight, play it neutral, be fact-based and try to add value. It's a really delicate dance."

What to watch: The looming succession plans for two of America's most famous CEOs, Jamie Dimon of JPMorgan Chase and Bob Iger of The Walt Disney Company.

More on Axios: Activist investors help to oust record number of CEOs