The first half of 2026 has witnessed a significant shift in global leadership dynamics, with CEO departures plummeting to their lowest level in nine years. This substantial decrease, detailed in a recent memorandum by Russell Reynolds Associates, suggests a growing stability in executive leadership across the world’s largest stock indices. While departures have fallen, CEO appointments have remained remarkably consistent, indicating a more measured approach to leadership transitions among corporate boards. Rusty O’Kelley, who co-leads Russell Reynolds Associates’ Global Board & CEO Advisory Practice, and Emma Combe, who heads the UK Board Practice, have analyzed these trends, offering insights into the evolving landscape of CEO succession and tenure.
A Marked Decline in CEO Turnover
In the first half of 2026, a total of 101 CEOs stepped down from their roles globally. This figure represents a notable decrease from the 118 departures recorded in the first half of 2025 and marks the lowest H1 departure total since Russell Reynolds Associates began tracking this data nine years ago. Concurrently, global CEO hiring remained steady, with 131 appointments, aligning closely with the nine-year H1 average of 129. This confluence of reduced departures and stable appointments signals a potential stabilization in executive turnover rates that have been elevated over the preceding two years.
The primary drivers behind this global moderation in CEO turnover can be observed in key global indices. The Nikkei 225, Japan’s benchmark stock market index, saw a significant drop in CEO departures, falling from 30 in H1 2025 to 19 in H1 2026. CEO appointments within the Nikkei 225 also declined, from 33 to 22 during the same period. Similarly, the S&P 500, the prominent US stock market index, experienced fewer CEO transitions, with departures decreasing from 36 to 30 year-on-year. S&P 500 CEO appointments also saw a dip, moving from 37 to 32.
This deceleration in leadership changes appears to be correlated with broader market conditions. In markets like the United States, rising stock markets may have contributed to a reduction in the pressure for immediate leadership changes. When companies are performing well and investor sentiment is positive, boards may feel less compelled to initiate disruptive executive transitions.
Activist Investor Influence Shifts Focus
The trend of stable CEO appointments, despite fewer departures, is further illuminated by shifts in shareholder activism. A report from Barclays highlighted that while activist campaign volumes remained robust in both Japan and the US during H1 2026, the nature of activist demands has evolved. A significant concentration of these campaigns focused on mergers and acquisitions (M&A), with demands for management changes representing a mere 3% of global campaigns. This indicates that while activists are actively engaged, their strategic focus has pivoted away from direct CEO removal, potentially allowing boards more autonomy in their succession planning.
Beyond the major US and Japanese indices, other significant markets also showed noteworthy trends. The FTSE 100, the UK’s primary stock market index, saw its CEO appointments double from three to six in H1 2026. While this represents a significant increase, it remains broadly in line with its historical nine-year H1 average of seven appointments. The Australian Securities Exchange 200 (ASX 200) also recorded an uptick in CEO appointments, rising from 11 to 14, which is again consistent with its nine-year H1 average of 12. These regional variations underscore that while global trends are emerging, specific market dynamics continue to influence leadership changes.
Boards Prioritize Proven Leadership Amidst Long-Term Succession Planning
A significant trend emerging from the H1 2026 data is the increasing premium placed by boards on CEOs with prior experience at public companies. In the first half of 2026, 30 out of the 131 newly appointed CEOs had previously held the chief executive role at a public company. This figure represents 23% of all appointments, the highest H1 share recorded in the nine-year tracking period. This suggests a clear preference among boards for seasoned leaders who can navigate complex business environments with a proven track record.
The S&P 500 demonstrated the most pronounced shift in this regard. Of the 32 incoming CEOs appointed in H1 2026, 11 (34%) had prior experience leading a public company. This contrasts with H1 2025, where only 8 out of 37 incoming CEOs (22%) possessed such experience. This data point suggests a deliberate strategy by S&P 500 boards to secure leaders with established executive credentials.
Internal Succession and Experience: A Synergistic Approach
Simultaneously, internal appointments within the S&P 500 reached an all-time high in H1 2026, with 88% of incoming CEOs being internal hires. This surge in internal appointments, coupled with the growing preference for experienced CEOs, points towards a sophisticated approach to succession planning. Boards appear to be increasingly adept at identifying and nurturing internal talent while also ensuring that these candidates possess the requisite experience.
The overlap between internal appointments and prior CEO experience is particularly revealing. Within the S&P 500, nine incoming CEOs were both internal hires and had previous public company CEO experience. Delving deeper, four of these individuals transitioned from board positions into the CEO role, while five held executive positions within their respective companies. This means that 13% of the incoming S&P 500 CEOs (4 out of 32) were already serving on the board, indicating a trend of boards grooming board members for the top executive role, leveraging their strategic oversight experience. This suggests that rather than viewing internal succession and proven CEO experience as mutually exclusive options, some boards are actively cultivating succession pathways that offer both.
This trend aligns with the increasing emphasis from institutional investors on treating CEO succession as a multi-year governance responsibility. The high proportion of internal appointments signifies that many boards are continuing to invest in long-term pipeline development for their leadership ranks. When credible candidates have been thoroughly developed, boards often favor leaders whose capabilities, judgment, and intimate knowledge of the organization are already well-understood, reducing the perceived risk of an external hire.
CEO Tenures Extend, Reinforcing Leadership Stability
The increasing average tenure of departing CEOs further reinforces the narrative of greater leadership stability. Globally, CEOs who departed in H1 2026 had served an average of 9.0 years in their roles. This is a significant increase from the 6.6-year average in H1 2025 and represents the second-highest H1 average outgoing tenure in the nine-year tracking period, surpassed only by H1 2023.
This upward trend in tenure was particularly evident in certain major indices. The average tenure of outgoing CEOs in the FTSE 100 reached 12.5 years, substantially exceeding the index’s nine-year average of 7.7 years. Similarly, the Euronext 100 recorded an average outgoing tenure of 12.4 years, compared to its historical average of 10.3 years.
Longer CEO tenures are intrinsically linked to a more stable leadership environment. When companies consistently deliver strong performance, boards and investors are generally less inclined to push for executive changes. In environments characterized by uncertainty, the inclination is often to retain leaders whose capabilities, judgment, and deep organizational knowledge have been consistently demonstrated. This continuity can be invaluable in navigating challenging economic climates.
Global Rise in Women CEO Appointments, with Significant Growth Outside US and UK
A positive development highlighted in the report is the global increase in women appointed to CEO positions. In H1 2026, women accounted for 21 of the 131 incoming CEO appointments worldwide, representing 16% of all appointments. This is the highest share recorded in Russell Reynolds Associates’ nine-year tracking period, indicating progress in gender diversity at the highest executive level.
However, the market picture remains uneven. Within the S&P 500, women represented only three of the 32 appointments (9%), a figure that lags behind the global average. Similarly, the FTSE 100 saw only one woman appointed CEO out of six total appointments. These statistics suggest that while global diversity at the CEO level is improving, the trend is more pronounced in certain major US and UK indices.
The most significant increases in women CEO appointments were observed outside these traditional markets. The ASX 200 saw women comprise six out of 14 appointments (43%), and the Euronext 100 reported four out of nine appointments (44%). Collectively, these two indices accounted for nearly half of all women CEO appointments globally in H1 2026, underscoring the varying pace of diversity initiatives across different economic regions.
Implications for CEO Succession and Future Leadership
The data from H1 2026 provides critical insights into the current state and future trajectory of CEO succession planning. The emphasis on proven CEOs suggests a desire for experienced leadership, particularly in an era that continues to present economic and geopolitical complexities. The concurrent rise in internal appointments, however, signals a strong commitment to nurturing talent from within, provided that robust development programs are in place.
The findings suggest that effective CEO succession processes are increasingly characterized by several key elements:
- Early and Sustained Investment: Robust succession planning is not an ad-hoc exercise but a continuous, multi-year commitment to identifying, developing, and assessing potential leaders. This involves providing candidates with opportunities to gain enterprise leadership experience, P&L ownership, and exposure to public and investor scrutiny.
- Multiple Credible Options: The ideal scenario for boards involves having a strong pool of both internal and external candidates, allowing for genuine choice based on the specific needs of the business at the time of transition. This preserves optionality and increases the likelihood of appointing the most suitable leader.
- Future-Focused Assessment: Candidates should be evaluated not only against the demands of the current role but also against the anticipated leadership challenges the company will face in the future. This requires a strategic foresight into market trends, technological advancements, and evolving business models.
- Boardroom Grooming: The trend of board members transitioning to CEO roles highlights the increasing importance of strategic oversight and governance experience in executive leadership. Boards that actively cultivate this pathway are better positioned to identify leaders with a holistic understanding of the organization’s strategic direction.
The H1 2026 data from Russell Reynolds Associates paints a picture of a maturing landscape for CEO transitions. While the world has moved past a period of unusually high executive turnover, the focus has shifted towards strategic stability, experienced leadership, and well-developed internal talent pipelines. As companies continue to navigate an ever-changing global economy, the principles of proactive, long-term succession planning will remain paramount in ensuring sustained organizational success.
The complete publication detailing these trends is available via Russell Reynolds Associates.
