{"id":6822,"date":"2026-02-24T10:34:12","date_gmt":"2026-02-24T10:34:12","guid":{"rendered":"https:\/\/www.iese.edu\/standout\/?p=6822"},"modified":"2026-02-24T10:34:12","modified_gmt":"2026-02-24T10:34:12","slug":"ceo-transitions-disruptive-times","status":"publish","type":"post","link":"https:\/\/www.iese.edu\/standout\/ceo-transitions-disruptive-times\/","title":{"rendered":"CEO transitions in disruptive times"},"content":{"rendered":"

[vc_row css=”.vc_custom_1559140963143{margin-top: 0px !important;margin-bottom: 0px !important;padding-top: 0px !important;padding-bottom: 0px !important;}”][vc_column css=”.vc_custom_1559216895048{margin-top: 0px !important;margin-bottom: 0px !important;padding-top: 0px !important;padding-bottom: 0px !important;}”][vc_column_text css=”” css_animation=”bottom-to-top”]In a world of relentless change and rapidly emerging new challenges, the CEO role has never been more demanding<\/strong>. The result? More CEOs are leaving their posts \u2014 and more boards are confronting high-stakes succession decisions.<\/p>\n

The data tells a clear story. CEO departures in the largest listed firms reached a new global record in 2025<\/strong>, rising 16% from the previous year and 21% above the eight-year average, according to indices tracked by Russell Reynolds Associates, a U.S. headhunting firm.<\/p>\n

Meanwhile, the length of time CEOs remain in the role has dropped to an average of seven years from just over eight years in 2021.<\/p>\n

The bottom line is that CEO tenures are getting shorter, while expectations are rising \u2013 and tolerance for missteps is diminishing. In unpredictable times like these, the need for boards to have robust succession plans<\/strong> in place is a strategic imperative.<\/p>\n

Many departures are the result of disciplined planning, as companies take the opportunity to enact orderly and carefully thought-out transitions.<\/p>\n

But companies should think hard about the trend for increased and more rapid CEO turnover and their response to it, says IESE Professor Guido Stein<\/strong><\/a>.<\/p>\n

\u201cThe turnover has a lot to do with the culture of the company \u2013 if we prioritize short-term results then we get short-term CEOs,\u2019\u2019 he says.<\/p>\n

Once they make their choice of CEO, companies must work with that person so that they can grow in confidence and become as effective as possible<\/strong> in the role as quickly as possible, says Arturo Llopis<\/strong><\/a>, a partner at Spencer Stuart who holds an MBA from IESE.<\/p>\n

\u201cAdaptation is one the biggest issues in high level appointments,\u201d says Llopis, a former professional basketball player for FC Barcelona.<\/p>\n

Why the right choice of leader matters more than ever<\/strong><\/h2>\n

Professor Jordi Canals<\/strong><\/a>, who leads IESE\u2019s Center for Corporate Governance<\/strong><\/a>, argues that shorter CEO mandates reflect the challenges stemming from increasing technological, and also geopolitical, disruption.<\/p>\n

Choosing the wrong successor can damage<\/strong> earnings, morale and reputation<\/strong>. Selecting the right one can reposition the company for its next chapter.<\/p>\n

Yet success is far from guaranteed. Research cited by McKinsey shows that two years after CEO transitions, between 27% and 46%<\/strong> are considered failures or disappointments. That\u2019s a sobering statistic for boards \u2014 and for executives aspiring to the top role.<\/p>\n

As IESE Professor Josep T\u00e0pies<\/strong><\/a> notes, the goal of a successful transition should be continuity of purpose, combined with renewal. Each CEO change should be an opportunity to redefine what kind of leadership the company needs next, says Prof. T\u00e0pies.<\/p>\n

To that end, boards should ask:<\/p>\n