Dow’s future depends on whether new CEO Karen Carter gets space to lead and how fast Jim Fitterling steps back

• In today’s CEO Daily: Diane Brady assesses Dow’s succession planning.
• The major leadership development: CEOs are confronting physical dangers.
• The markets: Remaining relatively stable as investors monitor U.S.-Iran discussions and process early earnings reports.
• Additionally: All the latest news and watercooler discussions from .

(SeaPRwire) –   Good morning. Former Cisco Chairman and CEO John Chambers once advised that a CEO’s primary responsibilities are to establish the company’s vision and strategy, recruit the senior leadership team to execute it, and cultivate an environment for a successful handover. I would add a fourth: understanding when and how to step down.

Dow announced yesterday that chief operating officer Karen Carter will assume the CEO role on July 1, with Jim Fitterling continuing as executive chair. My colleague Ruth Umoh highlighted that Carter was a strong candidate for the position, having been recognized on the latest Next to Lead list. In a LinkedIn post, Fitterling stated that Carter’s appointment “reflects a deliberate, multi‑year succession process, in partnership with our Board of Directors, designed to support consistent execution as we continue advancing Dow’s strategy.”

Fitterling deserves commendation for prioritizing succession. Now, he should grant Carter the autonomy to perform her duties.

During his eight-year tenure, Fitterling has steered Dow’s transformation from a commodity chemicals firm to an innovative, high-growth materials science company. As one of the few openly gay leaders in the 500, he serves as an inspiration to many unfamiliar with the company. However, he is only beginning to see a significant stock rebound and technological traction after sales were impacted by industry overcapacity, tariffs, and other challenges.

He also made it clear that a new CEO does not signify a change in direction. “Our direction is unchanged,” he wrote in his post, indicating his future focus will be on “long‑term strategy, governance, and key external relationships—supporting Karen and the leadership team to ensure continuity and strong execution.”

It is understandable to find comfort in a former CEO remaining involved during challenging periods. However, Disney’s Bob Iger learned firsthand the importance of providing successors with a clean slate. Many speculate whether Iger’s continued role as executive chair influenced Bob Chapek’s brief tenure and Iger’s subsequent return to the CEO position. (In Disney’s most recent restructuring, Iger will serve as a senior advisor to CEO Josh D’Amaro on the board only until the end of the year.) 

Carter will encounter the same challenges as her predecessor. As Fitterling told energy editor Jordan Blum last month: “The volatility is off the charts right now.” She may welcome his counsel as she takes over a capital-intensive, energy-sensitive global business navigating a cyclical downturn, geopolitical conflict, regulatory changes, and a new “transform to outperform” initiative aimed at rapid cost reduction through automation and AI.

Nevertheless, Carter possesses extensive operational expertise, having managed it for years. As CEO, her responsibility will now be to define Dow’s vision and strategy and to assemble her own team to achieve these goals. This might involve maintaining the current course or she may opt for a different direction in response to evolving circumstances. Hopefully, Fitterling will recognize when to step back and allow her the space to execute her role.

Contact CEO Daily via Diane Brady at diane.brady@.com