What’s behind the rise in interim CEOs

Hello and welcome to Modern CEO! I’m Stephanie Mehta, CEO and chief content officer of Mansueto Ventures. Each week this newsletter explores inclusive approaches to leadership drawn from conversations with executives and entrepreneurs, and from the pages of Inc. and Fast Company. If you received this newsletter from a friend, you can sign up to get it yourself every Monday morning.

Interim leadership is on the rise in the U.S. Nearly a quarter of new CEOs named in the first two months of 2025 were hired on an interim basis, versus 8% in the same period last year, according to a recent report from Challenger, Gray & Christmas.

The surge in interim leadership coincides with significant tumult in the C-suite. The Challenger report shows that 247 U.S. companies named new CEOs in February, the second-highest total for any month since the firm started tracking CEO changes in 2002. “A lot of times when a company brings in an interim CEO it’s when they’ve been caught off guard by the CEO’s departure,” says Andy Challenger, senior vice president of the outplacement firm. “It’s not part of a structured succession plan.” An interim CEO can buy a board time to conduct a thoughtful search for the right executive, especially if it feels the company needs skills that the existing leadership team lacks.

Management experts say they’re also seeing companies—particularly mid-market and investor-backed businesses—hire temporary CEOs during changes such as restructuring, merger integration, or executing a new strategy. “Their expertise can be crucial to navigating complex changes that require seasoned leadership—even temporary solutions can be transformative for an organization,” says Sunny Ackerman, global managing partner of on-demand talent at Heidrick & Struggles, the executive search firm.

The Temp-to-perm CEO

Interim roles also can serve as a “tryout” for prospective CEO candidates. And companies can engage an interim executive while they figure out what they need in a leader. Ackerman recalls working with her team on an early-stage medical technology company that sought to replace its founder with a full-time CEO. Heidrick & Struggles brought in a life sciences consultant who had been a CEO to create a plan for market entry. The board then hired that consultant as interim CEO to execute the plan. Once they saw his operational skills and market expertise in practice, the board eventually decided to convert him to permanent CEO. Other temp-to-perm CEOs include Chipotle’s Scott Boatwright, who went from interim in August 2024 to permanent status three months later, and Lance Tucker, who last month was named CEO of Jack in the Box after a 36-day stint as interim CEO of the restaurant company.

Avoid leadership limbo

Companies need to be careful not to let interim leadership linger. “If [an] interim is in place too long, it may communicate the wrong message to the market and employees and create uncertainty about the future leadership of the organization and its strategy,” says Janice Ellig, CEO of executive search firm Ellig Group. “Employees and the market like certainty. They want to know who is at the helm and what direction they are headed.” And in the absence of clear guidance from the board, some interim chiefs may act like caretakers instead of leaders, causing the company to lose ground during the search for a permanent CEO.

One thing’s for sure: Interim CEOs aren’t going away. Ackerman notes that many of the CEOs exiting business right now are baby boomer and Gen X retirees who are eager to remain active by taking on interim roles, “generating a larger pool of independent talent than we’ve ever seen before,” she says.

Are you a temp-to-perm leader?

Are you a CEO or leader who turned a temporary or interim role into a permanent one? How did you win your role? Send your stories to me at stephaniemehta@mansueto.com. I’d love to share your experiences in a future newsletter.

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