📣 Succession planning for CEO founders.
Is it time to pass the torch?
I was recently inspired by Evgeny Shadchnev PCC book, Startup CEO Succession: A Founder’s Guide to Leadership Transition.
Over the years, I’ve spoken with many founders who want to step back but feel unsure about how to transition smoothly, so I thought it might be helpful to share some of Evgeny’s key insights from his experience.
For most entrepreneurs, the excitement is in the early stages: finding product-market fit, raising capital, and building a founding team. But as the company matures, a different skill set is often needed to manage and grow sustainably.
🌟Here's what we've learned about planning a smooth transition🌟
👥 Why Founders Feel Stuck
Many founders reach a point where the thrill of building fades, and daily operations start feeling like a grind. But how do you step back without putting the company at risk?
Some founders find it hard to let go due to attachment, or simply not knowing what their next move looks like. This can leave an unhappy founder in place, unintentionally slowing the company down.
💼 Exploring Exit Strategies
Trade Sale: Sell the company to another business 🦄
Merger: Join forces with a competitor
MBO (Management Buyout): Empowering senior management to lead
Internal Transition: Move to a role within the company, usually Chairman or Functional CTO. CPO, CRO role
💰 Paid Exit: Negotiating a fair compensation package with the board
🔄 Ensuring a Smooth Transition
1️⃣ For the Founder: Transition coaching, interview support, CV & LinkedIn optimisation, guidance on next steps
2️⃣ For the Company: Restructuring, company culture, benchmarking for successor selection (internal vs external), rebalancing the cap table, PR to market
3️⃣ Choose your successor 🎯
✅ Identify the specific skills & experiences your successor needs – avoid hiring like-for-like
✅ Conduct market intelligence to assess the talent pool
✅ Agree on a clear timeframe with the board
✅ Prepare the right compensation plan
✅ Implement a thorough handover period
💬 What challenges have you encountered or observed in founder transitions?
👉 Want to discuss your hiring plans for 2025? Share your thoughts in the comments or DM me for confidential chat on succession planning: ell@santamonica.digital
With our network of experienced HR Executives we can help founders navigate this challenging transition, guiding them through the nuances of succession planning so they can leave the company in capable hands.
This guidance is especially suited for companies with 20 to 200 headcount, typically VC-backed Series A & B scale-ups and challenger brands.
