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CEO Succession: Leadership Readiness for the Next Phase

Leadership Readiness Series

contributing authors: Adam Boone, Matt Sharrers, Randall LaVeau, Ryan Tognazzini, ETJ Life

September 26, 2025,,

Evaluating Candidates Sitting CEOs vs. First-Timers

Perhaps no single decision has as much impact on a company’s future as choosing the next CEO. Whether driven by planned succession, performance transitions, founder retirement, or value-creation strategies, appointing a new CEO is a defining moment. Succession is not only about the right resume. It’s about whether a leader can carry the weight of the role without losing themselves. Leaders who align their identity and purpose with the job not only perform—they endure.

At ETJ Life and Bespoke Partners, we bring complementary lenses to this pivotal inflection point, drawing from decades of CEO coaching, succession planning, and executive search across private equity and growth-stage environments. This piece kicks off our joint content series on CEO performance and leadership strategies, focusing on how organizations can prepare for—and thrive through—CEO transitions.

When There’s No Clear “Heir Apparent”

In an ideal world, a natural successor rises through the internal ranks, groomed for leadership with a clear path to the top seat. But in many cases, the internal bench isn’t deep enough, or the future requires a different kind of leader.

So, what then?

Boards and sponsors must first ask themselves:

  • What will the business need from its CEO over the next 3–5 years?
  • Is the current context one of continuity or transformation?
  • How should we define the leadership profile to meet that mandate?

When there’s no clear heir, companies often turn to external markets. Yet emerging leaders can often be readied faster than assumed, closing gaps through focused development that gives boards more options before defaulting to an outside hire.

This is where structured succession planning frameworks play a critical role—mapping readiness, identifying gaps, and aligning leadership requirements with business strategy.

Evaluating Candidates: Sitting CEOs vs. First-Timers

A central choice in any CEO search is whether to pursue a sitting CEO with prior experience in the top seat, or to appoint a “step-up” candidate—someone taking on the role for the first time.

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    Sitting CEOs typically offer:

    • Battle-tested experience leading through exits, crises, or complex turnarounds

    • Confidence from investors and boards seeking low-risk transitions

    • A proven leadership identity and communication style
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    First-time CEOs typically offer:

    • Deep operating acumen and current knowledge of product, tech, end-market or GTM dynamics

    • Often stronger adaptability and openness to coaching

    • A fresh sense of urgency, ownership, and engagement

    • Motivation to prove themselves

The best choice depends on alignment—between the leader’s capabilities and the specific challenges of the business’s next chapter. Increasingly, the market is showing a strong appetite for well-prepared first-timers.

What the Data Shows: Effectiveness of First-Time CEOs

Bespoke’s Private Equity Talent Reports reveal a significant shift: 48% of all CEO placements made by the firm are first-time CEOs and they have achieved an impressive 97% success rate, meaning they are still in the role a year after placement.

These “Step-Up” leaders—often former CROs, CPOs, or CFOs—are no longer seen as risky hires. Instead, they are strategically sought out for roles that require growth, GTM transformation, or value creation in complex environments.

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    Notably:

    • First-time CEOs are performing as well or better than seasoned CEOs when placed with the right support.

    • 49% of Step-Up C-suite executives achieve exit, which is nearly identical to the 51% of experienced C-suite leaders who achieve exit, underscoring their effectiveness.

    • Sponsors are increasingly hiring them during top grading events—especially 4–6 years into a hold, when companies need leaders with fresh momentum and a path to exit.

    • Boards are providing structured onboarding and coaching to help first-timers scale into the CEO role with confidence and speed.

Behind these outcomes is more than smart selection—it’s the scaffolding provided post-placement. Without intentional rhythms and coaching, first-time CEOs plateau faster. With the right support, they scale across the full hold period.

Supporting First-Time CEOs: Coaching and Operational Guidance

Becoming a CEO isn’t just about getting the title—it’s about embodying the role. First-time CEOs often face challenges they haven’t encountered before: leading boards, managing investor dynamics, setting vision at scale, and influencing cross-functionally across unfamiliar territory.

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    ETJ Life coaches first-time CEOs to:

    • Build executive presence while staying authentic to their strengths
    • Develop strategic rhythms across stakeholders, teams, and capital partners
    • Structure decisions that balance vision with execution
    • Leverage vulnerability as a strength, not a weakness
    • Integrate personal purpose with professional mandate so decisions align with both board objectives and core identity
    • Balance family, health, and legacy with the intensity of private equity leadership

This is where the joint value of Bespoke and ETJ Life comes into focus: great recruiting paired with great coaching ensures that first-time CEOs don’t just step up—they scale up.

What’s Next in the Leadership Readiness Series

This blog post is just the beginning. In the coming posts, we’ll explore:

Set for Success:

What types of operational support and coaching do new CEOs require?

 

The Critical First 90 Days:

A practical onboarding roadmap—drawing from The Second CEO by Matt Sharrers

 

Working with Your Board:

Navigating governance, influence, and partnership as a new CEO

We’ll also draw from frameworks such as the Life Map and the Second CEO Operating System, translating identity, purpose, and leadership rhythms into practical tools for private equity–backed CEOs.

We’re especially excited to explore the intersection of leadership psychology, private equity context, and executive development. The “Leadership Readiness” framing helps unify these topics across search, succession, onboarding, and coaching.

Final Thought

CEO transitions are make-or-break moments. Companies that prepare intentionally—and support leaders as whole people—unlock not just value creation, but enduring leadership that carries through the role and beyond.

ETJ Life and Bespoke Partners are here to help guide those journeys.

 

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Contributing authors:

  • Boone
    Chief Marketing Officer

    Boone”has orchestrated strategy, launches and marketing programs for more than 100 products, services and ventures generating billions of dollars in revenue and many multiples of enterprise value. Sequoia Capital, Goldman Sachs, Greylock, Bessemer Ventures and other top tier private capital investors have backed Boone's companies in a range of sectors including software, telecommunications, cybersecurity, and networking.

    Boone has led marketing, demand generation, branding, product management, services marketing, or alliances marketing programs for numerous successful companies including Avaya-acquisition Sipera, Sequoia start-up Syndesis, Subex, CoManage, and others. He has driven joint marketing programs and go-to-market initiatives with iconic industry leaders including Microsoft, IBM, GE, AT&T, Oracle, Comcast, Cisco, Ciena and Samsung.

    Boone holds an MBA in Business Strategy from the WP Carey School of Business at Arizona State University and completed the Competitive Marketing Strategy Program at the Wharton School at the University of Pennsylvania.

  • Founder, ETJ Life

    Matt is the Managing Partner of ETJ Advisory, and author of the newly released book, “The Second CEO: Accelerating Scale When Following the Founder,” released June 11th. Ordering is available here: https://a.co/d/8vjnfU8

    Drawing from firsthand experience and mentoring, Matt provides actionable advice and key insights to help aspiring and incoming second CEOs drive growth and successfully transition into their roles.

  • Co-Founder & COO, ETJ Life

    Randall LaVeau is the Chief Operating Officer of ETJ Life, a private, invitation-only community for current and former CEOs of private equity-backed companies. In his role, Randall oversees the systems and operations that enable ETJ Life’s two flagship programs: the Navigator Program for first-time CEOs and those following founders, and the Sage Program for veteran CEOs navigating their next chapter. He leads daily operations across finance, legal, and compliance, manages technology and tools that support members and coaches, and ensures seamless delivery of programming. With a focus on scalability and alignment, Randall drives initiatives that enhance member experience, strengthen coach support, and position ETJ Life for continued growth.

  • Partner, ETJ Life

    Ryan Tognazzini serves as a Coach in ETJ Life’s Navigator Program, where he works with first-time private equity-backed CEOs to navigate the demanding early stages of leadership. He guides members through their first 100 days in seat, helping them clarify priorities, stabilize teams, and drive early momentum. Ryan also supports CEOs in scaling their leadership capacity while balancing personal health, family, and values, and provides structured tools for reflection to ensure both performance and well-being remain aligned. Through one-on-one coaching and peer cohort sessions, Ryan equips leaders with the clarity and control needed to succeed under the unique pressures of private equity.

  • Bespoke Partners and ETJ Life have joined forces in an ecosystem partnership aimed at setting PE-backed CEOs up for long-term success. ETJ Life, led by founder and CEO coach Matt Sharrers, offers a private, invitation-only community that blends structured coaching, peer accountability, and practical tools.

    Through ETJ Life’s two flagship programs, our clients benefit from targeted support at every career stage:

    Navigator: built for first-time CEOs and successors to founders, with a focus on the first 100 days, leadership capacity, and team dynamics.

    Sage: designed for former CEOs ready to reassess priorities, realign personal health, and refine their next chapter.

    This collaboration extends Bespoke’s executive search expertise beyond placement, giving newly appointed leaders an immediate network to share insights, strengthen decision-making, and stay aligned with demanding PE performance goals.

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