Succession Planning in Corporate Tax Departments: Not Just for CEOs
When most people hear succession planning, they picture the CEO’s chair. The boardroom, the press release, the carefully orchestrated handoff. Maybe even a battle of wits and bravado between four rival siblings, a la HBO’s Succession.
But here’s the blind spot: very few companies apply the same level of planning to their tax function.
And yet, if you’ve ever lost a key tax executive unexpectedly, you know the fallout is real - compliance risk, delayed projects, and a scramble to figure out who actually knows the “why” behind all those spreadsheets.
Succession planning in tax isn’t glamorous. But it is business-critical.
1. The Strategic Role of Tax Has Changed
Tax isn’t back-office anymore. It’s shaping corporate strategy, advising on M&A, and weighing in on global growth. Losing the person who sits at that crossroads without a plan? That’s like pulling the GPS out of your car mid-road trip.
As a parent of three, I can tell you: no GPS = no one’s making it to soccer practice on time. Same goes for your business strategy.
2. Mid-Level Leaders Hold the Keys Too
It’s not just about the VP of Tax. Directors and senior managers often hold the quiet knowledge that keeps the wheels turning - the unique way the ERP system spits out data, the nuance of how the company interprets a regulation, or just the fact that they know who to call when something breaks.
When they walk out the door without a succession plan, you don’t just lose a person. You lose a playbook.
3. Retention and Development Are Succession Tools
Succession planning isn’t just a “what if” document in a drawer. It’s about developing people so they’re ready to step up.
That means:
Spotting high-potential talent early.
Handing out stretch assignments (yes, sometimes before people feel “ready”).
Providing mentorship and visibility.
It’s also a huge retention driver. People stay when they see a future. Honestly, it’s not that different from parenting - if my kids think there’s a next step, a new challenge, or a reward waiting, they’re a whole lot more motivated to push through the tough stuff. The goals may have evolved, but professionals are motivated by the end game.
4. What This Means for Tax Professionals
If you’re mid-career, succession planning can be your ticket upward. The best companies are looking now at who can step up when a leader moves on. Be visible, take on projects that stretch you, and make sure your contributions are recognized.
If you’re already a director or VP, succession planning is part of your legacy. The mark of a great leader isn’t just the work you’ve done, it’s the people you’ve built up behind you.
5. What This Means for Hiring Managers
Ask yourself:
Who could step into my role tomorrow?
Who could step into theirs?
And what am I doing to make sure they’re ready?
And here’s a thought: don’t try to solve it all internally. Sometimes you need an outside perspective (hi, that’s us!) to help identify gaps, benchmark against peers, and bring in external talent when your pipeline isn’t enough.
Succession planning isn’t just for CEOs. In tax, it’s the difference between resilience and disruption.
As a business owner and parent, I’ve learned this lesson over and over: life rarely unfolds according to our calendar. But when you’ve invested in people - whether it’s your team at work or your kids at home - you’re always better prepared for what comes next.
And unlike Succession, you don’t need family feuds, dramatic exits, or surprise plot twists. You just need a thoughtful plan for your people.
