The era of internal CEO promotions is waning as companies increasingly look beyond their ranks for top leadership.
Large corporations have traditionally favored internal elevations to the corner office. In 2024, however, a record number of external candidates ascended to the top job at S&P 1500 companies. According to Spencer Stuart, 44% of new CEOs appointed last year came from outside the company, a 12% increase from 2023. This shift is particularly pronounced among mid-cap companies, where 58% of incoming CEOs were external hires. At Fortune 500 companies, however, 76% of CEOs are internal appointments.
