Introduction
Succession planning has always been a top priority for boards and executives. But in the era of the Great Wealth Transfer—where $84 trillion will move from Baby Boomers to younger generations—the conversation is expanding. Leaders are no longer just thinking about who will take over roles, but also how wealth itself will reshape leadership, ownership, and influence. This shift is what we call succession wealth.
Succession Planning vs. Succession Wealth
Traditional succession planning is about ensuring business continuity: who will lead when an executive retires or exits. Succession wealth, however, acknowledges that personal and generational finances—inheritance, equity, and ownership—directly influence who steps into leadership roles and how companies evolve.
- Succession Planning: Focuses on roles, talent pipelines, and organizational readiness.
- Succession Wealth: Focuses on how financial resources and inherited assets influence leadership decisions, retirement timing, and even ownership transfers.
Why Succession Wealth Matters Now
1. Accelerated Retirements
As Baby Boomer leaders inherit or consolidate family wealth, many will retire earlier than expected. This accelerates leadership turnover and increases demand for next-generation executives.
2. Family Business Transitions
Roughly 30% of U.S. family-owned businesses will change hands during the wealth transfer. Leadership decisions in these businesses are tied not only to skills but also to inheritance structures and estate planning.
3. Leadership Diversity Challenges
Without intentional equity strategies, the wealth transfer may concentrate leadership opportunities among those with inherited advantages, limiting access for underrepresented executives.
4. Impact on Succession Pipelines
Next-generation leaders may approach roles differently. With financial security from inheritance, they may prioritize purpose, flexibility, or innovation over traditional career tracks.
What Leaders Need to Do
- Integrate Wealth Conversations into Succession Planning
Boards and HR leaders should consider how inheritance and personal financial realities may influence executives’ decisions to stay, retire, or pursue entrepreneurship. - Strengthen Leadership Pipelines
Proactively build diverse talent pipelines, ensuring successors are ready to step in regardless of generational wealth advantages. - Engage in Transparent Communication
Executives nearing retirement should discuss not just professional succession, but also how family wealth transitions may impact ownership and company direction. - Prepare for Shifts in Leadership Expectations
Millennials and Gen Z inheriting wealth may bring different priorities—social impact, sustainability, equity—that reshape leadership culture.
Conclusion
Succession planning is no longer just about roles—it’s about wealth. In the era of the Great Wealth Transfer, succession wealth will determine not only who leads, but how leadership and ownership evolve across generations. Forward-thinking leaders must prepare now, balancing traditional planning with a clear-eyed understanding of how inheritance and equity shape the future of business.
Pull Quote: “Succession wealth is the new frontier of succession planning—linking leadership with legacy.”
Call to Action
If your organization is navigating succession planning in the context of the Great Wealth Transfer, I can help you connect the dots between leadership, wealth, and equity.
👉 Contact me at stephanie@bggenterprises.com.
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