Should Your Next CEO Come from Your Board?

These days a growing number of companies are hiring their directors to be their new CEOs. From 2018 to 2023, 10% of incoming CEOs across the S&P 500 and Russell 3000 came from the board. Though this choice is still more an exception than a rule, there are compelling reasons to consider it. As insiders, board members have a valuable feel for the company’s culture, history, and strategy, and as outsiders, they can more easily challenge the company’s existing ways of operating. Board-to-CEO transitions must be handled with care, however. In this article, the authors describe when it makes sense to appoint a board member to the top office, what can go wrong, and how to manage the sensitive dynamics involved to boost the odds of success

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