CEO succession transfers responsibility for leading the company to a suitable successor. It includes the role, appointment, authority, resources, communication and review of the arrangement in practice.

Distinguish three changes

Management succession changes who leads. Ownership transfer changes who owns. Emergency continuity provides for unexpected unavailability. An owner can retain shares after a CEO handoff, and a company can need emergency arrangements before any permanent succession is complete.

A named candidate is preparation. A completed handoff means the successor actually carries the CEO role and the owner follows the agreed boundaries. The review uses actual decisions and company evidence. A functional assessment score, vacation or favorable quarter cannot establish all of that by itself.

M27: Succession explains the five requirements, working plan and continuing review. Remaining CEO can be a deliberate choice while succession is still being prepared.