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Nerva
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Perhaps most important consideration... in determining Nerva's selection was the age of the new emperor. At least in his mid 60's Nerva was reportedly in poor health and as suggested by Suetonius, only the astrology that predicted Nerva's imminent natural death prevented Domitian from having him executed anyway. This vulnerable status and the fact that Nerva had no direct male heirs with whom to continue another family dynasty, allowed the Senate to use him as an interim emperor, until another suitable candidate could be found. Nerva's complete lack of military experience also prevented a potential for a legionary revolt based on loyalties to slightest generals. Military candidates to the imperial throne such as Trajan understood that Nerva's appointment was a stopgap measure and that the real game was not played by succeeding Domitian but would be won as Nerva's heir.
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Nerva was a Roman emperor that ruled from the year 96 until 98. Many historians refer to him as being a "good emperor." One reason for this was his decision to choose a successor by merit instead of by blood. This practice was used after his reign had ended, and this led to a time of peace and stability. When it came to his childhood, Nerva was more like Vespasian. While his family was noble, he was not considered to be a member of the Roman elite.
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At the fall of Nero, Nerva had made a transition away from his old benefactor. Tacitus in his Histories does not include any mention of Nerva... the future emperor must have realized that support of the Flavian cause was in his best interests. The victors in the civil war of 69 had debts to pay their supporters. The Senate met for the first time following the success of the Flavian revolt on December 21, 69 to settle the consulships for the following year. Naturally enough, Vespasian, the new emperor, was first choice, and was joined by his son, Titus, as colleague. Suffect consulships were held by Licinius Mucianus and Petillius Cerealis, two of the Flavian’s most important supporters.
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Nerva's career as emperor ended less than two years after his accession to the throne. Up to that point he had been a long-time central politician under the various emperors before him, particularly Domitian and Nero. However, he started off as emperor under a precarious relationship with the army which rightly suspected him of being involved in the conspiracy against Domitian. He made things right in their eyes by presenting them with an embarrassingly apologetic speech and appointing Trajan as his successor. Trajan was at the time an admired general engaging the Germanic tribes. He died in 98 following a stroke and afterwards Trajan forced the Senate to consecrate him.
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That very same day, Nerva was elevated to the imperial throne, with speculation that Domitian's own wife and prominent members of the Senate were involved. This speculation included the involvement of Nerva, stemming from the ease of the transition following nearly 30 years of Flavian rule to a sudden and 'unexpected' end without an heir in place. Nerva's position and his quick appointment to replace Domitian certainly must have had some reflection on personal ambition, but not only was he a respected elder statesman of the Senate, but as a member of the Flavian supporters, his selection offered a quick and simple opportunity. As a previous and long standing member of Domitian's supporters, those supporters who remained were appeased by Nerva's selection (as a member of their own faction), and the opposition could rest easy with the understanding that the old and new emperors seemingly had had a falling out anyway. Nerva ... agreed upon several measures which would bring back a semblance of Senatorial control to the daily government of the empire. While the 'Republic' had long been dead as a political institution, the new government of Nerva would be more reflective of Augustan principals which left an impression of Senatorial authority.
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In the area of economic administration Nerva, like Domitian, was keen on maintaining a balanced budget. In early 97, after appointing a commission of five consular senators to give advice on reducing expenditures, he proceeded to abolish many sacrifices, races, and games. Similarly, he allowed no gold or silver statues to be made of himself. Even so, there was some room for municipal expenditure. For the urban poor of Italy he granted allotments of land worth 60 million sesterces, and he exempted parents and their children from a 5% inheritance tax. He ... made loans to Italian landowners on the condition that they pay interest of 5% to their municipality to support the children of needy families.
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Nerva