Passing the baton symbolising a new leader

Reward leadership: 5 insights on internal succession

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It’s been a busy start to the year in the reward market. 2025 has seen 12 leadership changes in FTSE 100 Reward roles to date – eight of which were internal promotions which is a notable increase from previous years.

Eleanor Sutton, Partner specialising in Reward within the HR Executive Search team at Eton Bridge Partners, has been closely observing these shifts. At Eton Bridge Partners, we have been exploring how best to support internal reward candidates and help set them up for success as they transition into the number one seat.

In addition to speaking to outgoing Reward Directors about their succession planning approaches, we recently hosted a dinner for a number of newly appointed Reward Directors to share their experiences, as well as to understand how they were prepared for the step up. Through these conversations, five key themes emerged.

 

1. Timing matters: Strategic windows for succession

The timing of leadership transitions within Reward functions is often overlooked, but critical to success. The optimal moment for succession tends to be post-year-end and after the Annual General Meeting (AGM), providing the new Reward Director with a period of stability to settle into the role before the next cycle begins.

Why this matters:

  • It provides a buffer to absorb legacy issues, build trust with key stakeholders, and strategically assess the existing reward framework.
  • It ensures that the incoming leader is not thrown into the deep end during critical moments, which can be detrimental to confidence and credibility.

Maintaining continuity among pivotal stakeholders such as the CHRO, CEO, and Remuneration Committee (RemCo) Chair during this transition further smooths the handover process.

However, it is equally important to recognise that sometimes leadership upheavals or strategic shifts after appointment can be leveraged positively. These moments of constructive disruption enable the new Reward Director to assert influence, drive innovation, and reset expectations. As one seasoned Reward Director succinctly put it: “Never waste a good crisis.”

 

2. Early access to the RemCo Chair to build strategic influence

Direct engagement with the RemCo Chair is critical, but often difficult for the number two to achieve. RemCos can already feel crowded and it can be hard to add another attendee to the group, so this can require a carefully managed approach.

Key considerations:

  • The succession candidate must move beyond the role of passive observer to an active contributor. This requires defining a clear, value-adding remit such as leading pre-meetings or driving specific agenda items relevant to board-level discussions.
  • Early, meaningful engagement with the RemCo Chair helps the successor build strategic relationships, understand the committee’s priorities intimately, and demonstrate readiness to lead.
  • CHROs and outgoing Reward Directors should facilitate these interactions proactively to signal endorsement and trust.

Positioning the successor as a credible, strategic partner rather than a junior observer is essential to building their authority and confidence before they officially take the reins.

 

3. CHRO support is crucial

The CHRO must play an active role in both preparing and supporting the new Reward Director post-appointment, creating the conditions for a successful transition.

Effective CHRO support includes:

  • Advocating for the successor’s access to key stakeholders (executive peers, RemCo members, external advisors) and carving out time in their schedule for strategic development.
  • Providing candid, ongoing feedback that is both developmental and directional to help the new Reward Director stay on course and embed best practices.
  • Modelling a culture where succession is openly discussed and integrated into talent planning conversations, ensuring Reward succession is viewed as a strategic priority rather than an afterthought.

For reward leaders, this reinforces the broader imperative to embed talent development and succession planning as a core pillar of organisational resilience.

 

4. Outgoing leaders must step back for the next leader to thrive

For a successor to succeed, the outgoing Reward Director must fully vacate the seat – both in title and influence.

Why this matters:

  • Continued involvement from the predecessor can create confusion and undermine the authority of the newly appointed candidate.
  • Organisations must establish clear transition protocols to define responsibilities after handover, ensuring the predecessor’s influence is wound down respectfully and promptly.
  • For the successor to truly lead and succeed, they need space to shape their agenda, introduce their style of leadership, and implement their vision, even if it differs from that of their predecessor.

This principle also applies to the culture within the Reward function: the successor’s credibility must be clear for the function to thrive.

 

5. Navigating internal politics

Promoting one candidate often means other candidates are overlooked. Managing disappointed internal talent is essential to maintaining team stability and long-term functional health.

 

How leaders can support this transition:

  • Transparent, empathetic communication throughout the succession process is essential, balancing openness with confidentiality.
  • Outgoing leaders and CHROs must work together to support the career pathways for those not selected, ensuring continued engagement and development opportunities to retain top talent.
  • Succession discussions should be embedded within broader talent management frameworks, enabling the organisation to anticipate potential discontent and proactively manage internal dynamics.

 

Ultimately, succession is not just about the individual stepping up, but about safeguarding the function’s long-term capability and stability.

For senior Reward leaders and CHROs, the insights shared here underscore the importance of strategic timing, proactive mentoring, and creating the conditions for new leaders to truly lead.

Internal succession isn’t just a promotion – it’s a strategic opportunity to shape the future of Reward leadership.

If you’re navigating your own Reward succession or looking to strengthen your succession strategy, connect with Eleanor to share your insights and discuss how she can support your leadership journey.