You finally got your legal department humming. After three years, you have a strong relationship with a CEO who trusts you and understands the value that you bring to the company. Your budget and your team have grown at a strong clip, even in tough financial times, and you’re just starting to feel comfortable. That’s when your CEO announces that she’s leaving the company and that the board found a replacement who will start in two weeks.
What now? This is the question that GCs may be asking at companies like Starbucks, Citi, and BP, who are all facing a change in leadership.
CEO transitions don’t always bring out the best in teams. Leaders who remain may jockey for position in hopes of securing funding or favored status. Rumors fly about what the new CEO may do. (“I heard she laid off a quarter of her team at her last company.”) Resumes are updated. You sense the tension, even through Zoom.
As the general counsel, you’re not immune from fear. A good CEO-general counsel relationship is a personal one built on trust and openness—there’s no guarantee you’ll click with the new CEO. I would focus on three things during what might be a challenging period for your career.
Be a leader. As general counsel, you’re being watched not only by your team, but also by employees throughout the company. You’re a thermostat—your words and actions set the temperature for the climate of your department and even the company as a whole.
Be mindful of that. Embrace change with a positive attitude—let everyone know that change is healthy and a normal part of any organization, and express enthusiasm for what a new CEO may bring. Don’t talk negatively about the former CEO, the board, or the incoming boss. You can privately express your disappointments, trepidation, and misgivings to your family and close friends outside of work; in the office, you need to be a role model for the leadership team.
Make a positive first impression. You’ve got a lot of work to do to prepare for your first meeting. Spend a little time getting some background about your new CEO. Hopefully, you’ve cultivated some good relationships with board members.
And it can’t hurt to make a couple of calls to get their impressions of what the new CEO might be thinking, how you might work best with that person, and advice on how you can help with the transition. Do research online, listen to interviews or podcasts that your new leader may have done, and talk to colleagues who may have worked at a company with your future boss.
Anticipate the obvious questions. What are the substantial risks that the business faces? What’s the status of significant litigation or regulatory matters? Do you have any concerns about intellectual property? Are there sensitive employee matters? Are there areas where you’re worried about compliance with laws? Will other leaders complain about your department?
You could be an easy target for sales groups who want to blame missed targets on legal’s inability to get contracts done or marketing leaders who complain about a cumbersome approval process for ad campaigns.
Know your metrics, and be prepared to talk about where the legal dollars are going. I would prepare a legal background document to introduce your new leader to the department and have it ready for the first meeting.
Get your first meeting on the calendar. Reach out, introduce yourself, and let your new boss know if there are any urgent matters that require immediate attention. Legal might understandably not be their first priority, and letting them know that you’re ready to talk when they are might be wise.
In the meeting, read the room. Make sure you go in prepared to listen and take notes but be ready to talk about yourself, your department, and the company if asked. This isn’t the time to ask for that raise, complain about the behavior of other leaders, or ask for more legal budget; it’s a time to establish a relationship and build trust.
Focus on the big things—it’s fine to talk about things that are going well (you want to put a good foot forward), but be candid about areas where you and the team need to improve. Your new boss will appreciate the straight talk and your focus on improvement.
Also, get a sense of how your new CEO wants to communicate going forward and whether there are initial areas that should be your focus. It’s hard to establish relationships remotely, and if your new CEO is planning to work from the office, you want to be in the office as much as possible even if the official policy allows you to work from home.
After the meeting, do a readout with your legal leadership team—don’t share anything that’s confidential, but your team will appreciate knowing that you’ve met with the new CEO and being in the loop about first impressions and potential areas of focus.
Reinforce a calm, positive perspective on the transition, promise good communication, and preach patience. Transitions take time, and you don’t want it to distract from getting work done.
Rob Chesnut consults on legal and ethical issues and was formerly general counsel and chief ethics officer at Airbnb. He spent more than a decade as a Justice Department prosecutor.
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