Interim CEOs: From Stopgap to Strategic Advantage

More than 1,200 CEO departures were recorded in the first half of the year alone, a 20% increase over the previous record set in 2023.

This surge has propelled interim CEOs into the spotlight. One-third of all new CEOs appointed in 2025 began their roles on an interim basis, with 18% designated as professional placeholders, more than double the figure from just a year ago.

What was once seen as a short-term patch is fast becoming a vital strategy for boards navigating disruption.

Why the C-Suite is in Flux

The drivers of this churn are wide-ranging. Economic volatility, ongoing executive retirements, and the strain of constant disruption are pushing many CEOs to the point of burnout. The rapid advance of artificial intelligence and shifting stakeholder expectations only add to the pressure.

For many companies, the problem is compounded by inadequate succession planning. Larger corporations can often redeploy senior talent to cover leadership gaps, but small and mid-market businesses rarely have that luxury.

For many small and even medium sized businesses, succession planning is often little more than a theoretical exercise. When the CEO departs, executive teams are already stretched too thin to step up, leaving the board scrambling.

The Interim CEO Advantage

Interim CEOs are no longer simply holding the reins until a permanent appointment is made. Boards are increasingly turning to them as agents of stability and, in most cases, transformation.

Skilled interim leaders can quickly assess a company’s situation, align leadership priorities, and take decisive action during a critical inflection point. For organizations in transition, that ability to execute at speed while providing a steady hand is invaluable.

They can also, for example, be brought in to provide specific sector or geographic knowledge, giving companies access to expertise they do not have in-house. An interim leader might be tasked with launching a new business unit, shaping a go-to-market strategy in an unfamiliar region, or developing a product line without the immediate cost or commitment of a full-time hire.

The rise of the interim is also not limited to the CEO role. Interim CFOs and other top executives are being deployed to steady companies while longer-term solutions are found, reflecting a broader shift in how organizations think about leadership during periods of disruption.

Beyond Keeping the Seat Warm: Building Leadership Teams

The most effective interim CEOs do more than manage the immediate challenge. They focus on strengthening the leadership team that surrounds them.

By assessing team dynamics, identifying capability gaps, and coaching senior executives, they create cohesion and resilience at the top of the business. This work not only supports the interim period but also lays the groundwork for succession.

In practice, this can mean refining decision-making processes, introducing new ways of working, fostering greater collaboration across functions, or repairing fractured cultures.

Interim leaders often bring fresh perspectives, unencumbered by internal politics, which allows them to challenge entrenched behaviors and encourage more agile thinking. They can also mentor potential successors directly, helping them to build confidence in areas such as board engagement, crisis management, or strategic execution.

It is not uncommon for a direct report of an interim CEO to emerge as the natural choice for the permanent role, their development accelerated by the interim’s guidance. In this way, the interim becomes a catalyst for leadership growth and organizational renewal rather than just a placeholder.

What Boards Should Do

Boards facing CEO turnover should view interim leadership as an opportunity rather than a compromise. Appointing an interim CEO creates the space to run a thoughtful search process without losing momentum in the business.

It also provides a chance to strengthen the executive team through coaching, alignment, and development. Boards that engage with the interim as a strategic partner, rather than a caretaker, often discover hidden strengths within their leadership bench.

At the same time, interim assignments can be an attractive path for experienced CEOs exploring portfolio careers, broadening the pool of leaders available to companies in transition.

Turning Churn into Opportunity

The era of high CEO turnover shows no sign of abating. For companies that lack succession depth, the risks are considerable. Yet the rise of the interim CEO demonstrates that there is also an opportunity in churn.

Interims bring stability, clarity, and the ability to galvanize leadership teams at moments of uncertainty. Boards that embrace this approach can turn a leadership gap into a period of renewal and growth, positioning the organization for long-term success.