Ask the Expert: Banking, sponsored by Hancock Whitney

 Robert Stuart
President
Hancock Whitney
As regional president for the market, Stuart leads Hancock Whitney’s commercial, middle market, and corporate banking growth and strategy as bankers serve clients and businesses in communities throughout Greater Baton Rouge. Stuart is an active supporter of and served with numerous community organizations, including Arts Council of Baton Rouge, Baton Rouge Area Chamber of Commerce, Junior Achievement of Greater Baton Rouge & Acadiana and Big Buddy of Baton Rouge.

What key roles should be included in our succession plan?

Your succession plan should include all mission-critical leadership and operational roles that directly impact business continuity, client relationships, and strategic decision making. This typically encompasses the CEO, CFO, COO, heads of major divisions or departments, and key relationship managers. In family businesses, ownership and governance roles should also be defined separately from management roles. Additionally, identify potential successors and interim leaders to ensure seamless transitions during unexpected events. A cross-functional advisory team including legal, tax, banking, and HR should support the plan’s design and execution.

How do we assess & prepare internal candidates for leadership roles?

Begin by evaluating current leaders and potential successors against the skills, experience, and values required for future success. Use performance reviews, leadership assessments, and 360-degree feedback to identify gaps. Develop customized growth plans that include mentoring, job rotations, and exposure to strategic projects. Encourage participation in leadership development or certification programs to build readiness. Regularly track progress and provide transparent feedback to ensure candidates are aligned with business goals.

What legal & financial considerations should we be aware of?

Succession planning involves complex tax, ownership, and legal implications. Key considerations include business valuation, transfer or sale structure (gift, sale, ESOP, etc.), and potential estate and capital gains taxes. Legal documentation, such as buy-sell agreements, shareholder agreements, and updated wills or trusts, must align with the plan. It’s essential to work with a coordinated team of advisors, including an attorney, accountant, banker, and wealth strategist. Early planning can reduce tax exposure and prevent liquidity challenges during ownership transfer.

How often should we revisit or update our succession plan?

A succession plan should be reviewed at least annually or whenever major business, tax, or personal changes occur. Key triggers include leadership departures, business growth or restructuring, new tax legislation, or significant changes in company value. Regular updates ensure the plan remains aligned with strategic objectives and family or ownership dynamics. Treat it as a living document rather than a one-time event. Continuous communication with advisors and stakeholders keeps the plan relevant and actionable.

What are the most common mistakes organizations make in succession planning— & how can we avoid them?

Common mistakes include starting too late, failing to identify and train successors, relying on informal plans, and neglecting communication with stakeholders. Many owners also overlook business valuation or underestimate the impact of taxes and liquidity needs. Others allow the business to remain overly dependent on a single individual, reducing transferability and value. To avoid these pitfalls, start early, document the plan formally, and engage professional advisors. Regularly test and refine the plan to ensure it holds up under real-world scenarios.

445 North BLVD, Baton Rouge | 225-381-0495 | hancockwhitney.com

This information is general in nature and is not intended to be legal, tax, or financial advice. Consult an appropriate professional concerning your specific situation and irs.gov for current tax rules. Hancock Whitney offers investment products, which may include asset management accounts, as part of its Wealth Management Services. Hancock Whitney Bank is a wholly owned subsidiary of Hancock Whitney Corporation. Hancock Whitney Bank, Member FDIC. Trust and Estate services are provided by Hancock Whitney Bank. Hancock Whitney Bank is a wholly owned subsidiary of Hancock Whitney Corporation. Investment and Insurance products: NO BANK GUARANTEE | NOT A DEPOSIT| MAY LOSE VALUE | NOT FDIC INSURED | NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY