Final answer:
When a new CEO comes in, the outgoing CEO might be named to an honorary position like Chairman or a member of the Board of Directors, which allows them to advise without being involved in daily operations.
Step-by-step explanation:
When a new CEO steps into their role, the predecessor might be offered an honorary position. This is similar to how new presidents nominate new ambassadors and fill senior cabinet agency positions. While the concept is different in the private sector, outgoing CEOs might be given titles such as Chairman or named as a board member, allowing them to continue contributing their expertise without the responsibility of daily operations.
Unlike federal judges who serve for life and create vacancies slowly through retirement, corporate roles can change more rapidly. It's not uncommon for a former CEO to remain with the company in a supportive role, ensuring a smooth transition and maintaining continuity. Board of Directors positions are typical examples of an honorary type of role that a retiring or stepping down CEO might be offered.