"As of June 30, 2025, nearly 60% of S&P 500 C-suite leaders were appointed from inside their own organizations, reinforcing the enduring value of leadership development and disciplined succession planning.That internal bias is even stronger at the very top, according to a Spencer Stuart report. Seventy-six percent of CEOs and 80% of chief operating officers (often a stepping stone to the corner office) were promoted from within their companies, making these roles the most likely to be filled by insiders."
"Company scale plays a meaningful role in these outcomes. Larger organizations, particularly those with multiple business units, tend to generate deeper internal talent benches. More functional leadership roles allow high-potential executives to be developed, tested, and rotated across the enterprise, increasing the odds that boards can look inward when critical roles open. External hiring still remains a vital lever, especially when companies need to strengthen capabilities in highly specialized areas such as technology, but it is typically used selectively rather than as the default."
Nearly 60% of S&P 500 C-suite leaders were appointed from inside their own organizations as of June 30, 2025. Internal promotions are even more common for CEOs (76%) and COOs (80%). Larger companies with multiple business units produce deeper internal talent benches and use functional roles to develop and rotate high-potential executives. External hiring is used selectively to fill highly specialized capability gaps, particularly in technology. Industrial and consumer sectors show roughly 61-62% internal appointments, while healthcare and technology trail at 56%. Fewer than 20% of external CEO and COO hires come from outside the company's sector. Boards favor long internal runways, cross-functional breadth, and industry expertise for top roles.
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