Today’s significantly challenging macroeconomic and geopolitical environment as well as associated market uncertainty pose numerous challenges on banks. Considering these market dynamics, the relevance of the CEO role increases and is under special scrutiny from all stakeholders. Throughout the last three years, approximately more than 30 CEO successions occurred within the European banking landscape. This study analyzes the underlying decision patterns and parameters of banks appointing a new CEO successor.
Main drivers of CEO succession in banks
The decision to a appoint an internal or external CEO successor depends on the overall business performance of the bank or the type of departure of the previous CEO.
By appointing an internal CEO successor, banks commonly strive for stability and consistency. An internal CEO hire commonly facilitates corporate stability through an effective recruiting and onboarding process.
An external CEO successor, commonly offers new strategic business ideas and perspectives for a bank.
Three key empirical patterns
Jonas Heydasch also contributed to this report.
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