Inside a Model CEO Transition

June 12, 2025 – The transition of a CEO in non-profit organizations should ideally resemble the precision and coordination of a relay race. Just as runners synchronize their movements for a seamless baton handoff, non-profit boards, outgoing leaders, and incoming CEOs must work in tandem to ensure a smooth transition. A successful handoff requires timing, trust, and preparation – otherwise, momentum can be lost, and the organization risks stumbling in its mission. The relay is not about the individual runner but about advancing the team toward the goal. In the same way, non-profit leadership transitions are not about any single leader but about sustaining and advancing the organization’s mission, according to a recent report from CarterBaldwin Executive Search. The strategies outlined in Compassion International’s CEO transition case study provide a roadmap for boards and executives to execute this crucial exchange with agility and purpose.

The firm recently interviewed Judy Golz and Karen Wesolowski, current and former board chairs, respectively, alongside Wess Stafford and Jimmy Mellado, former and current CEOs, respectively, to uncover the principles and practices that guided Compassion International’s successful transition.

1. Start Early with CEO-Led Planning.

Compassion International’s board and leadership took a long-term approach to succession planning, which continues to this day. This posture ensured the process was gradual and collaborative. Succession discussions with Mr. Stafford began years in advance, enabling the board to identify key attributes for the next CEO and explore the possibility of both internal and external candidates.

When Mr. Stafford approached the board three years before his planned departure, some on the board were surprised. “Why would you leave when everything is going so well?” they asked. Mr. Stafford replied, “Because I want to make sure that five years from now, it’s still going well.” His decision to initiate the process proactively while the organization was thriving gave Compassion time to transition from a position of strength. Mr. Stafford shared, “I wanted to leave while I still had gas in the tank.” His deliberate planning honored the organization’s legacy and ensured that his eventual exit was seen as a step forward, not a sign of decline.

“Begin formal succession planning early,” the CarterBaldwin report said. “Develop a structured framework that includes leadership development, organizational needs analysis, sector evaluation and readiness assessment for potential successors. Leaders should start succession planning while they are at their peak, allowing for a calm, deliberate process rather than a reactive, crisis-driven transition.”

2. Build Ownership Through Collaboration.

Mr. Stafford and the board took an inclusive approach to transition planning, surveying the board, executive team, and international staff about the characteristics they envisioned in the next CEO. The responses emphasized qualities like humility, global experience, and deep spiritual grounding. These conversations helped the organization collectively envision the future, giving stakeholders a sense of ownership and confidence in the process. One staff member remarked, “For the first time, we weren’t scared about what would happen when Mr. Stafford left. He gave us the space to dream about the kind of leader we needed.”

“Engaging the entire organization in envisioning the next leader reduces fear and builds collective ownership of the process,” the CarterBaldwin report said.

3. Be Open to External Options.

Initially, Mr. Stafford believed an internal candidate would be the best fit. Research validates that this increases the probability of success. However, as Compassion was experiencing unprecedented growth and scale, the board recognized the need to also consider external candidates with significant relevant CEO experience. Participant count was 729,867 by the end of 2005 and nearly 1.4 million by the end of 2013. When the board asked Mr. Stafford for recommendations, he immediately thought of Santiago “Jimmy” Mellado.

Mr. Stafford and Mr. Mellado’s connection spanned decades. In 1993, both became CEOs of their respective organizations—Mr. Stafford at Compassion, Mr. Mellado at the Willow Creek Association. At an executive retreat, they stayed up all night sharing their visions. “Jimmy talked about building leaders in the church, and I told him, ‘We’re doing the same thing, except we start with children in the womb,’” Mr. Stafford recalled. This bond, forged over a shared calling, laid the foundation for the eventual transition.

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The CarterBaldwin report said to : “Conduct a rigorous evaluation of both internal and external candidates to prioritize mission alignment, leadership skills, and the ability to navigate the organization’s strategic needs and unique culture. Consider external candidates who align deeply with the mission. Preexisting relationships and trust can be invaluable during transitions.”

4. Engage a Qualified Search Partner.

The CEO Succession Task Force interviewed and selected a qualified executive search consultant. It’s rare that any non-profit would have all the relational networks, competence and experience to produce a short list of qualified CEO candidates on their own, according to the CarterBaldwin report. “This worthwhile investment is very strategic, since the consequences of hiring the wrong CEO could be disastrous to the organization,” it said. “In the search process, look for a consultant that brings significant experience in the sector, proven assessments, and a successful track record. Partnering with an experienced executive search consultant ensures access to broader networks, proven assessment methodologies, and sector-specific expertise, reducing the risk of a poor CEO hire.”

5. Ensure the Outgoing Leader Embraces a Diminished Role.

The board credited Mr. Stafford’s graceful transition and embrace of a diminished role as president emeritus as a key factor in the successful transition. To ensure clarity, the board required that he step back from daily operations entirely for the first three months of Mr. Mellado’s tenure and gave full authority to Mr. Mellado to define any future role for Mr. Stafford and its duration. Mr. Mellado and Mr. Stafford together defined a valuable role that included engaging outside advocacy opportunities, connecting with donors/pastors, and encouraging staff as requested.

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In the ongoing debate about the CEO’s most crucial role, many experts highlight various aspects such as strategy, culture, vision, and shareholder value. Despite these discussions, Price Harding and CarterBaldwin believe that the essence of effective leadership boils down to one critical responsibility: ensuring that the right CEO is at the helm. This article explores why this fundamental role, often overlooked, is pivotal to maximizing all other aspects of leadership and organizational success.

“Establish clear protocols for outgoing leaders to minimize ambiguity,” CarterBaldwin said. “Ensure their role is well-defined and subordinate to the new CEO, with no direct reporting relationship to the board.”

6. Create a Thoughtful Onboarding Plan.

Compassion designed an intentional five-month onboarding period where Mr. Mellado worked alongside Mr. Stafford while he wound down his responsibilities at Willow Creek. The board was deeply involved in every transition stage, from succession planning to providing ongoing support for Mr. Mellado during his first year. Monthly check-ins and an annual review process created a mechanism for continuous feedback and support.

“Create a structured onboarding plan that includes overlapping leadership periods, formal endorsement from the outgoing leader, and time for the new leader to observe and assess the organization,” the CarterBaldwin report said. “Boards should take an active role in transition planning and execution. Designate a liaison or committee to manage the transition, provide oversight, and serve as a resource for outgoing and incoming CEOs.”

7. Publicly Celebrate the Transition.

Mr. Stafford and Compassion’s board kept their global workforce well informed at each step of the selection and transition process to maintain the momentum of day-to-day operations, build optimism for the future, and introduce Mr. Mellado to the organization. Mr. Stafford also went out of his way to prepare Mr. Mellado’s workspace. “My team and I worked with Jimmy and his wife, Leanne, to redesign the office to fit his style. When he walked in for his first day, it said, it said, ‘Santiago
“Jimmy” Mellado’ on the door,” Mr. Stafford recounted. “I wanted him to feel like this was already his place.” Mr. Stafford moved into a smaller office nearby, ready to answer questions but careful not to hover.

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To mark the handoff, Compassion hosted a global event celebrating Mr. Stafford’s legacy and welcoming Mr. Mellado. The event included a ceremonial baton-passing, with Mr. Stafford declaring, “In this moment, the president of Compassion just became younger, smarter, and better-looking.” The humor and warmth of the ceremony resonated deeply with staff. “We saw two leaders who genuinely respected and loved each other,” said one attendee. “It gave us confidence that Compassion’s future was in good hands.”

“Hold a public handoff ceremony to reinforce unity and signal continuity to stakeholders, staff, and donors,” CarterBaldwin said. “The outgoing CEO should visibly prioritize the incoming leader’s success. Symbolic gestures, like vacating key spaces, reinforce commitment to the transition.”

8. Emphasize Humility in Leadership.

Both Mr. Stafford and Mr. Mellado modeled humility throughout the process. Mr. Stafford made it clear that nothing from his tenure was sacred. “There’s not a single program or decision that’s untouchable,” he told Mr. Mellado. He also very clearly told Mr. Mellado, “I really only have one job … to do all I can to make you successful.” Similarly, Mr. Mellado adopted a “Four L’s” approach—Listen, Learn, Love, Lead—ensuring he understood Compassion’s culture before making significant changes. Mr. Mellado recognized that his outsider status presented potential cultural challenges. His focus on listening, learning, and understanding the organizational context before leading it helped mitigate this risk.

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During their onboarding period, Mr. Mellado asked Mr. Stafford countless questions about the organization’s history and decisions. “I wanted to honor the foundation Mr. Stafford had built while discerning where God was leading Compassion next,” Mr. Mellado explained. This humility laid the groundwork for trust between the two leaders. Mr. Stafford positioned himself as a resource rather than a shadow. He made himself available for historical and strategic context while maintaining clear boundaries to empower Mr. Mellado as the decision-maker.

“Foster humility in both outgoing and incoming leaders,” CarterBaldwin said. “The outgoing CEO should release control, while the new CEO should approach their role with great curiosity as a servant-leader.”

9. Plan for Donor Confidence.

Poorly executed leadership transitions can be very destabilizing for donor-funded organizations. Given that reality, both Mr. Stafford and Mr. Mellado committed themselves to providing steady connection and consistent communication with key donors throughout the transition process to the present. As a result, Compassion has continued to experience growth each year for more than a decade since the transition. Mr. Stafford and Mr. Mellado’s visible mutual support reassured donors, preserving trust and financial stability.

CarterBaldwin says to prioritize donor communications during leadership transitions. Ensure consistent messaging and provide opportunities for outgoing leaders to affirm their successors publicly.

10. Prioritize Trust in the Transition.

Mr. Stafford fully endorsed Mr. Mellado, even supporting decisions he might not have made. Mr. Mellado prioritized honoring Mr. Stafford’s legacy while making thoughtful, incremental changes. Their 20-year friendship was rooted in mutual respect and shared values. This trust reassured Compassion’s staff and donors, who saw their unity as a reflection of God’s blessing on the transition. During the transition, Mr. Stafford promised Mr. Mellado, “I will never speak ill of you behind your back, and I will use my influence to support your leadership.” For Mr. Mellado, these words provided reassurance and the courage to lead authentically.

“Outgoing leaders should affirm their successors publicly and privately, using their influence to build trust in the new leader,” CarterBaldwin said.

11. Define Roles for Outgoing Leaders.

A trusted board member served as a liaison to Mr. Stafford, facilitating his exit package and emeritus role. This ensured a smooth departure and minimized potential challenges arising from identity loss or unclear expectations. The board gave Mr. Mellado the authority and freedom to jointly create the president emeritus role with Mr. Stafford. The emerging emeritus role focused on Mr. Stafford’s strength as one of the most effective and anointed child advocates in the world. This critical contribution was a great value to Compassion’s mission and was very complimentary to Mr. Mellado’s CEO role, internally and externally.

“Clearly define emeritus roles to complement, not compete with, the new CEO’s responsibilities,” the CarterBaldwin report said. “Offer outgoing leaders support mechanisms, such as transition coaching, severance packages, and even emeritus roles if fully supported by the incoming CEO. Ensure these arrangements are clearly defined and approved by the board in close collaboration with the new CEO.”

12. Protect Organizational Stability During the Transition.

Understanding the context of the organization is critical to the leadership transition process, according to the CarterBaldwin report. “If the organization needs a major turnaround or reinvention, the incoming leader, with the board, should have a clearly defined plan to implement even significant changes as appropriate to the need,” it said. “If the organization is in a strong and stable position, it provides valuable time for the new leader to build relational trust, understand the culture, and evaluate the greater context before making any significant personnel, strategic or structural changes. Given the healthy position Compassion was in, Mr. Mellado delayed making any major structural or personnel changes during his first year.”

CarterBaldwin explained to encourage new leaders to avoid immediate, sweeping changes unless the context demands it. “Provide opportunities for them to listen, build trust, and establish a shared vision with staff and stakeholders,” the firm said. “Provide new leaders with tools to understand organizational culture, strategic landscape, and external context. Offer in-depth briefings, mentorship, or immersion programs to bridge gaps in familiarity while preserving objectivity.”

13. Regularly Evaluate Leadership Performance.

After ensuring the development of a strategic plan, Compassion’s board conducts a comprehensive annual review of the CEO, which includes board evaluations, 360 input, KPI assessments, and open discussions. This process ensures alignment and accountability while offering a forum for feedback.

“Ensure the development of a strategic plan with robust performance evaluation process for CEOs,” CarterBaldwin said. “Include regular reviews to assess leadership effectiveness, progress toward goals, and relationship dynamics with the board.”

14. Prepare for the Next Transition.

Compassion’s approach to succession planning goes beyond immediate leadership transitions, embedding leadership development into its long-term strategy, the CarterBaldwin report noted. “This ensures a steady pipeline of future leaders aligned with its mission, values, and growth goals,” the firm said. “By proactively preparing successors, Compassion strengthens organizational stability and reinforces the culture of servant leadership that defines the ministry.”

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Contributed by Scott A. Scanlon, Editor-in-Chief and Dale M. Zupsansky, Executive Editor  – Hunt Scanlon Media