Dow’s next chapter depends on whether new CEO Karen Carter gets room to lead—and how fast Jim Fitterling steps back

In today’s CEO Daily: Diane Brady grades Dow on its succession planning.

The big leadership story: AI CEOs are facing physical risks.

The markets: Holding relatively steady as investors eye U.S.-Iran talks and digest early earning results.

Plus: All the news and watercooler chat from Fortune.

Good morning. Former Cisco Chairman and CEO John Chambers once told me that a CEO has three main tasks: to set the vision and strategy of the company, to hire the senior leadership team to get it done, and to create the conditions to successfully replace themselves. To that, I’d add a fourth: Know when and how to move aside.

Dow announced yesterday that chief operating officer Karen Carter will become CEO on July 1, with Jim Fitterling staying on as executive chair. My colleague Ruth Umoh noted that Carter was a leading contender for that job, having landed on the latest Fortune Next to Lead list. In a LinkedIn post, Fitterling noted 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.”Kudos to Fitterling for taking succession seriously. Now, he should give Carter space to do her job. 

During his eight-year tenure, Fitterling has transformed Dow from a commodity chemicals company to an innovative high-growth materials science company. As one of the few openly gay leaders in the Fortune 500, he’s also an inspiration to many who don’t know the company. But he’s only just starting........

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