• CEO candidate resigns Research from BlackRock and JPMorgan Chase shows that finding good replacements is difficult, and keeping good candidates loyal can be a challenge in itself.

The announcements of possible CEO successors at BlackRock and JPMorgan Chase are the latest reminder that CEO transitions are never simple, especially when it comes to the world's top financial jobs, experts say.

Mark Wiedman, BlackRock's top client-facing executive and possible successor to CEO Larry Fink, said on Wednesday he would volunteer away from his character Spring after 20 years at the company.

On the same day, two JPMorgan Chase executives apparently dropped out of the race to succeed Jamie Dimon, the major bank's longest-serving CEO (one is retiring and the other is reportedly worried Not interested in one position.)

Chris Stanley, senior director and head of banking at Moody's, said both examples demonstrate the difficulty of replacing long-term leaders, and in the financial sector, the transition process is particularly difficult.

Potential CEO candidates need to have a good grasp of the complexities of business in any industry. But in finance, they also need to be familiar with the increasing regulation of the industry over the past 30 years, Stanley said.

In modern finance, where so much expertise is needed across operations, finance, sales, and risk, it can be difficult to find candidates with a deep understanding of each area.

"As banks get bigger, the specialization or expertise required in these four broad areas, but individually, each of the bank's business units becomes very difficult to control by one person," Stanley told wealth.

In addition to the hard skills required for the job, CEOs of large banks and finance need to be charismatic and able to sell a shared vision of where the company is going to employees, shareholders and boards, he added.

"In a commodities business like banking, where margins are so low, it's a very compelling story that you have to tell 'we're going to change what we're doing'. We're going to invest here. That's what we're looking at To where the opportunity is,” he said.

Another complicating factor is that the executive may be under the radar of someone elsewhere.

Larry Hartmann, CEO of ZRG Partners, a global talent consultancy, said that when an employee is identified by a company or the media as a candidate for a CEO position, they may reconsider when other opportunities arise. . This is especially true if the candidate is not confident of beating other contenders.

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