The survey, sponsored by Chartwell Partners, reveals a concerning decline in formal readiness for leadership transitions. Only 9% of respondents have identified a CEO successor with an established timeline and action plan, a sharp drop from 17% a year ago. Nearly one-third of institutions operate with a general sense of a timeline but lack identified candidates, leaving boards exposed to sudden vacancies.

Emily McCormick, vice president of research at Bank Director, notes that the push for AI proficiency is forcing a revaluation of executive talent. Leaders must now bridge the gap between technical strategy and institutional culture. This demand extends beyond the C-suite, with respondents anticipating the heaviest AI-driven staffing impacts in cybersecurity, IT, and anti-money laundering compliance.

J. Scott Petty, managing partner at Chartwell, warns that boards often make the mistake of projecting current needs onto future leaders. Instead, he suggests directors evaluate whether a candidate can scale the organization five years down the road. Currently, the most cited development gaps for potential CEOs include M&A experience, strategic acumen, and regulatory credibility. While compensation costs rose for 87% of banks in 2025—with median CEO bonuses jumping 34% to $168,000—the focus remains on securing the specific high-level skills required to navigate an increasingly automated financial landscape.