CSP Board Governance & CEO Succession 2

Question 1

Which board committee is most commonly tasked with overseeing CEO succession planning?

Accepted Answer

Nominating and Governance Committee

Answer

The Nominating and Governance Committee typically has primary oversight responsibility for CEO succession planning as part of its governance mandate.

Question 2

What is the primary purpose of an 'emergency succession plan' for the CEO role?

Accepted Answer

To ensure continuity if the CEO becomes suddenly unavailable

Answer

An emergency succession plan ensures the organization can continue operating if the CEO becomes suddenly incapacitated, deceased, or otherwise unavailable without notice.

Question 3

When a board evaluates internal CEO succession candidates, what is the recommended approach to candidate development timelines?

Accepted Answer

Maintain a rolling 3–5 year development horizon for top candidates

Answer

Best practice calls for a rolling 3–5 year development horizon so that candidates gain meaningful experience across business cycles and diverse challenges.

Question 4

A board is selecting a new CEO during a strategic pivot toward digital transformation. Which criterion should weigh most heavily in this context?

Accepted Answer

Digital literacy and technology leadership competency

Answer

When the strategic direction requires digital transformation, the board must prioritize competencies aligned with that strategy, making digital leadership capability the most critical selection criterion.

Question 5

What does 'board refreshment' mean in the context of CEO succession planning?

Accepted Answer

Adding directors with skills aligned to future strategic needs

Answer

Board refreshment refers to proactively adding new directors whose skills, perspectives, and competencies align with the company's evolving strategy and future CEO oversight needs.

(CSP) Certified Succession Planner Practice Test

(CSP) Certified Succession Planner Practice Test

CSP Board Governance & CEO Succession 2