Boyden Canada’s Brent Cameron shares insights with Wealth Professional
With more than three-quarters of Canadian business owners planning to exit their companies within the next decade, the conversation around leadership transition has never been more urgent.
Brent Cameron, regional managing partner for executive search and consulting firm Boyden Canada has been speaking with Wealth Professional and warns that the greatest risk of neglecting succession planning is nothing short of existential. And that should be a concern for advisors’ business clients and wealth industry firms.
“If succession planning isn’t addressed properly, the biggest risk is to business continuity,” Cameron says. “If a business owner who has been acting as CEO or has played a significant operational role retires without a strong successor in place, there is significant risk that the business will struggle or even fail.”
Cameron adds that rushed or ill-prepared transitions can have far-reaching consequences.
“If a business leader decides they’re ready to retire within the year but isn’t able to find a strong successor by then, they may opt to sell or close the business,” he explains. “If a successor hasn’t been provided ample time and effective training prior to being transitioned into the role, they may struggle to maintain operational success and stakeholder confidence.”
But even with the best planning, finding qualified successors has become increasingly difficult in Canada. According to Cameron, the challenge is not a lack of ability, but geography and demographics with declining interprovincial migration rates and a demographic dip following the baby boomer generation.
“While there is tremendous executive talent in Canada today, we’re a relatively small country by population,” he says. “That talent pool is spread out unevenly across one of the largest countries by surface area on the planet. It is getting harder, not easier, to relocate talent. For those looking for executive talent with about 25 years or more experience in the workforce, that domestic cohort is smaller.”
Attracting international leaders is also proving difficult. Cameron says that financial considerations often deter global executives from relocating to Canada.
“When there is reluctance from global talent to relocate to Canada, it is usually relative to where they may be relocating from and oftentimes financially motivated,” he explains. “Canadian salaries are generally lower than those in the US and many European countries, and our housing prices are often, but not always, higher.”
Still, he emphasizes that Canada has strong selling points. “There are a lot of benefits of relocating to Canada that global talent can and do find attractive, such as the quality of life, safety, the education system and universal healthcare.”
For many owners, especially founders, succession planning can be deeply personal. Cameron often sees leaders struggle to step back, even after identifying a successor.
“Finding a successor can often feel very personal, especially for leaders who’ve held their position for decades or maybe even founded the company,” he says. “Many times, business owners hire or promote a successor with the honest intent to step back or retire, but they ultimately have difficulty relinquishing the CEO role and responsibilities.”
This can lead to frustration and a leader who quits. Cameron emphasizes that successful succession planning is a long-term process, not something that can be achieved in a few months.
“On average, a successful succession plan can take anywhere from three to five years to fully execute,” he says. “That’s why it’s critical for business leaders to begin thinking of succession planning well before they would actually like to step away from the business.”
Cameron suggests getting expert advice and highlights that an external advisor can add perspective and expertise, with executive search firms like Boyden playing a crucial role in bridging the gap between available talent and organizational needs.
