In 2024, CEO succession events across various industries revealed significant trends that highlight the evolving nature of leadership transitions. With increasing market volatility, boards are under pressure to ensure readiness for leadership changes. Below are the most notable trends in CEO succession:
1. Rising Unplanned CEO Successions
Unplanned CEO transitions accounted for 50% of all successions in 2024, a noticeable increase from 43% in 2023. This rise reflects boards reacting faster to underperforming strategies or leadership, often due to performance issues or strategic misalignment. For example, Atos experienced two unplanned CEO successions in 2024, driven by strategic execution and performance concerns, demonstrating the need for boards to act swiftly when leadership misalignment affects company stability.
2. Preference for Internal Promotions
75% of new CEOs in 2024 were promoted internally, continuing the trend of companies favoring internal candidates who are already familiar with the organization’s culture and operations. This preference suggests that boards are focusing on continuity and minimizing the onboarding period for new leadership, which is especially crucial in a fast-paced business environment. Schneider Electric followed this approach, promoting Olivier Blum internally after a short tenure with an external hire, signaling the company’s confidence in its internal leadership talent.
3. Increased Use of Interim Appointments
Interim CEO appointments represented 33% of CEO successions in 2024. This trend indicates that companies, while not fully prepared for sudden leadership changes, are ensuring that there is no leadership vacuum. Interim leaders can stabilize the company while the board searches for a permanent successor, helping to manage disruptions in a rapidly changing market. Worldline appointed Marc-Henri Desportes as interim CEO in 2024 after the abrupt departure of the previous CEO, demonstrating how interim appointments are becoming a critical tool for managing leadership transitions during volatile times.
4. Governance and Leadership Role Separation
The practice of separating the roles of CEO and Chair continued to grow, with 66% of companies adopting this structure in 2024. This approach is viewed as a best practice for corporate governance, ensuring clearer roles and better oversight. Additionally, external advisors were consulted in only 33% of CEO succession processes, indicating that many boards prefer handling these transitions internally. For instance, Dassault Systèmes carried out a long-planned leadership transition with both internal and external inputs, yet still maintained governance integrity by separating CEO and Chair roles for clarity.
5. Limited Gender Diversity
Despite increasing diversity in CEO backgrounds, gender diversity remains an issue, with no women appointed as CEOs in 2024 across the studied companies. This ongoing lack of gender representation in leadership positions highlights a significant area for improvement in many organizations’ succession planning efforts.
The trends in CEO succession underscore the growing need for boards to adapt to rapid market changes. With a higher frequency of unplanned successions, a preference for internal promotions, and a rise in interim appointments, organizations are increasingly looking to streamline leadership transitions and ensure stability.
However, the continued lack of gender diversity in CEO roles signals an area for improvement in fostering inclusive leadership development.
Effective succession planning remains crucial for organizations to stay resilient in a dynamic business environment. Ensuring a proactive, diverse, and well-prepared leadership pipeline will be key to long-term success.
At Morgan Latif, we specialize in guiding companies through the complexities of leadership transitions, including CEO succession planning and executive recruitment. Our expert consultants work closely with boards to assess leadership readiness, design tailored succession strategies, and ensure that the right leaders are in place to navigate business challenges and drive long-term success.
Whether you need support in internal talent development, interim leadership solutions, or improving governance structures, Morgan Latif is here to help your company stay ahead of the curve. Contact us today to learn more about how we can assist with your CEO succession planning and leadership development needs.
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