"Selecting the new CEO is one of the Board’s three most crucial tasks, matched only by a decision to merge or sell the company, or the selection of a new Chairman. Merely announcing who your next CEO will be can move the market value of your company by 5% or more1, and research by Harvard Business School on the value of a great CEO suggest figures of around 15% of your company’s market value2. Furthermore, the share prices of companies with successions that are unplanned typically under-perform their peers by more than 2%."
You should read the article for a couple of reasons:
1) Know how your board and CEO think - that is priceless for a CIO
2) Know what works in successful succession planning - that is, well, even more important to any leader, especially a CIO