The share of external CEO hires in the S&P 500 nearly doubled in 2025, reaching the highest level in eight years, according to a Nov. 24 report from The Conference Board.
The report — developed in collaboration with executive search and consulting firms Egon Zehnder, Esgauge and Semler Brossy — is based on SEC Form 8-K filings from S&P 500 and Russell 3000 companies across industries through Oct. 3.
Here are six things to know:
1. CEO turnover rose from 7% to 12% in 2025 among the S&P 500’s top-performing companies. Among bottom-quartile performers, turnover was 14% in the S&P 500 and 18% in the Russell 3000, both slightly lower than in 2024.
2. Exiting CEO tenure increased to an average of nine years in the S&P 500 and eight years in the Russell 3000, up from seven years in 2024 in both groups.
3. CEO gender diversity plateaued in 2025 after years of steady gains. The number of women CEOs in the S&P 500 remained flat at 48 in both 2024 and 2025. In the Russell 3000, the share of women CEOs rose from 7.6% to 7.7%.
External hires
4. The share of CEOs appointed in the S&P 500 from outside organizations rose from 18% in 2024 to 33%. Internal hires still made up 67% of appointments, though this marked the first time in eight years internal hires dipped below 70%.
5. Internal CEO hiring slightly rose in the Russell 3000, with appointments increasing from 62% in 2024 to 65% in 2025.
6. The growing share of external CEO hires points to a shift in board perspective on leadership succession, according to the report.
“They’re increasingly prioritizing strategic renewal and the infusion of new perspectives — seeking leaders who can navigate disruption, accelerate transformation, and respond to evolving stakeholder expectations,” Umesh Chandra Tiwari, executive director of Esgauge, said in the report.
Hospitals and health systems have also turned to more external CEO hires in recent years. External candidates may have an advantage through prior CEO experience or bring a fresh perspective, Michelle Johnson, senior partner at executive search firm WittKieffer, told Becker’s in 2024.
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