CEO Succession Planning in Small Community Banks: A Qualitative Case Study of “PNW” Bank

Abstract

The case study explores an effective, successful chief executive officer (CEO) succession at a small community bank. The outcome of CEO successor choice can have a substantial impact on the organization's strategy and success. Lack of an effective succession planning process presents a challenge for these banks that are thinly staffed and have aging CEOs and executives. The emergent themes and major findings were initial vision of candidate, intentional communication during transition, successor cultural fit, and trusting relationships. Other small community banks can use the major findings for succession planning to reduce the risk of negative or unintended consequences.