strategic intent to meet “rapidly changing external demands,” including inflationary pressures and geopolitical risks. In this respect, succession planning is not merely a corrective for poor results or a function engaged episodically in response to an upcoming retirement vacancy or unexpected departure. Rather, it is a significant and ongoing component of a board’s oversight function that can pre-empt activist criticism. For more on Canadian succession-related activism, see our Governance Insights 2026 : “Shareholder Activism in Canada: Surprising Resilience and Shifting Dynamics.” One Size Does Not Fit All: A Bespoke Succession Plan for the Future Succession planning should reflect the unique circumstances of the company, its culture, strategic direction and challenges, and a good plan will represent the board’s consideration of these issues through the lens of succession. The act of planning should be ongoing, even during the early stages of the existing CEO’s tenure. The plan should reflect the future needs of the organization and track the development of the company’s talent pipeline against these needs, highlighting any skill set gaps that may require internal development or external recruitment. Generally, a board’s consideration of potential candidates should not be limited by default to internal candidates only. Investors expect the board to cast an appropriately wide net to source candidates with the right skill set; if there is a lack of confidence in the board’s processes or a failure to adequately communicate a compelling plan, activists have already demonstrated that they will take the initiative to recruit and propose potential successors from outside the company.
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Governance Insights 2026
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