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Appointing board directors as CEOs was once a “break glass in case of emergency” strategy reserved for scandal, illness, or sudden resignation. While it remains a minority path compared with traditional internal promotions, it is no longer an anomaly.
New data from Spencer Stuart highlights the shift. Of the 168 new S&P 1500 chief executives appointed in 2025, the highest annual total since 2010, 19 were drawn from their own company boards, the most since 2020. Spencer Stuart classifies directors as outsiders because they lack day-to-day operating responsibility. Even so, more boards are turning to them.
The increase comes amid elevated churn. CEO departures in the S&P 500 reached roughly 13% in 2025, according to governance trackers, leaving boards to manage performance pressure and succession gaps simultaneously. Internal candidates, such as chief operating officers and division heads, still account for the majority of appointments. But in moments of strategic reset, boards sometimes look beyond executives associated with the existing plan. Meanwhile, several high-profile external hires have reinforced the risks of expensive searches that promise reinvention but deliver disruption.
The insider-outsider advantage
Against that ...
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