"Boards rarely say it out loud, but experienced executives understand intuitively that once a CEO is chosen, the long-term prospects for previously whispered-about internal candidates dim almost immediately as power consolidates around the new chief executive. That's why many of the most ambitious leaders in American business don't linger after a succession decision. They move deliberately, and often quickly, because the moment immediately after a board makes its choice is paradoxically when a near-CEO executive's market value is at its peak."
"The executive has just been validated at the highest level-close enough to be seriously considered for the top job-without yet absorbing the reputational drag that can follow prolonged proximity to a decision that didn't go their way. In that narrow window, the story is still about capability. Search firms and directors see a leader who was trusted with scale, complexity, and board scrutiny, not someone who failed to clear the final hurdle."
Walmart named U.S. chief John Furner as its next CEO and ended prospects for Kath McLay, Walmart International's CEO, who will depart after a brief transition. Once a CEO is chosen, long-term prospects for other internal contenders diminish as power consolidates around the new chief executive. Ambitious executives often leave shortly after a succession decision because their market value peaks immediately after the board's choice, while capability remains the focal story. Search firms and directors see near-CEO executives as validated leaders trusted with scale, complexity, and board scrutiny. After Jeff Immelt became GE's CEO in 2001, Bob Nardelli left shortly thereafter to lead Home Depot.
Read at Fortune
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