57th Street Partners Executive Search

The Executive | October 2026 Edition

Oct 12, 2026

OCTOBER 2026 · A TWO - MINUTE READ

The strongest succession plans look inside and outside.

Readiness requires both.

If a critical executive left tomorrow, would you have a successor, or would you be starting from scratch?

Succession planning is not simply about naming the next person in line. It is about understanding the capabilities the business will need, developing internal talent and knowing when an external perspective could strengthen the organization.

Welcome to the October edition of The Executive. This month, we explore what internal CEO appointments reveal about succession planning, share three questions to assess your leadership bench, and offer a quick update on the talent market.

A NOTE FROM MARCIA

Build your leadership bench before you need

It’s a question worth bringing to your next leadership meeting. You may have someone in mind, but knowing who could eventually grow into a role is different from knowing who could step in tomorrow. Start with the roles where a departure would create the greatest disruption. Consider who owns key relationships, makes critical decisions or holds knowledge that hasn’t been shared. Then ask:

Who could keep things moving immediately? Identify someone who could provide interim coverage, even if they aren’t the permanent successor.

Who could take on the role long term? Assess their readiness against what the business will need next, including decisions, responsibilities and challenges they haven’t yet faced.

What would they need to be ready? Be specific about the experience, exposure or support that would help close those gaps.

If you have a potential successor, give them opportunities to demonstrate readiness now. That might mean leading a strategic initiative, owning a budget, presenting to the Board or managing an important customer relationship. Agree on what success looks like and review their progress regularly. Have a conversation about their interests, too. Strong performance doesn’t always mean someone wants the next role.

If you don’t have a successor, start by putting a coverage plan in place. Document key responsibilities, decision-making authority and relationships so the organization can continue operating through a transition. Then determine whether you can develop someone internally or need to explore external talent.

Even with a strong internal bench, understanding the external market can help clarify the experience and capabilities the role requires. Evaluate potential successors against the same expectations rather than relying on tenure or familiarity alone.

My advice: leave the conversation with a named interim leader, a development plan for potential successors and a clear owner for the next steps. Revisit the plan as your business and leadership team evolve because the best succession plans create options before the business is forced to make a decision.

Where would a leadership departure leave your organization most exposed?

Reply and let me know what you’re thinking through.

Marcia Zaruba O'Connor
CEO & Founder, 57th Street Partners

The Numbers that Matter

37%

More than one-third of respondents in Nasdaq’s Global Governance Pulse survey reported that their boards had no CEO succession plan or only an emergency plan.

If a critical leader leaves unexpectedly, an emergency plan can keep the business moving. Finding the right permanent successor requires a clearer view of what the organization needs next and who can deliver it.

Assess your internal bench, identify gaps and understand the external talent market before a departure forces the timeline. When an external hire is needed, that preparation creates a stronger starting point for a focused executive search.

Strengthening the Board's Ability to Execute Its CEO Succession Plan

THE MARKET IN 60 SECONDS

Hiring improved, but the market remains selective

U.S. employers added 133,000 jobs in August, while unemployment remained unchanged at 4.1%. The increase was stronger than the average monthly gain over the previous year, but growth remained uneven across industries.

The latest available data also showed:

Screenshot 2026-10-12 140227

Job Openings and Labor Turnover Summary

57TH STREET PARTNERS IN ACTION

Internal Candidate or External Search?

An internal promotion may offer continuity, cultural understanding and organizational credibility. An external hire may bring new capabilities, industry insight or the experience needed to lead through transformation.

The right answer depends on what the business needs next.

57th Street Partners helps organizations define the outcomes of a leadership role, evaluate internal readiness and benchmark potential candidates against the external market. This gives boards and leadership teams a clearer view of their options and greater confidence in the final decision.

Whether the next leader comes from inside or outside the organization, the process should begin with the same question: what must this person accomplish for the business?

Are you Ready for an Executive Hire?

We recommend working with an executive search firm for senior roles over $200K in base salary. Growth and mounting pressure may signal the need for additional leadership, but they do not always mean an organization is ready to hire.

Read the full insight

An Executive Search Opportunity

We’re pleased to share that 57th Street Partners has been exclusively retained by LMC to lead the search for its next Vice President, Building Materials.

LMC is looking for an accomplished building materials leader to help shape the future of its Building Materials Division. This individual will bring strong industry and distribution experience, with an understanding of the full channel, from manufacturers and suppliers through distributors and independent dealers. We’re looking for someone with strength in supplier negotiations, category strategy, commercial growth, and P&L leadership who can identify new opportunities, strengthen partnerships, and drive continued growth across the division.

Learn more here! 57th Street Executive Search -1

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