Outsider CEOs Are on the Rise at the World’s Biggest Companies

A growing number of top global companies are turning to outsiders in their planned succession processes, according to the annual CEO Success study conducted by PwC’s strategy consulting business Strategy&. The survey of the 2,500 largest public companies around the world found that 22% of CEOs hired in a planned succession over the previous four years came from outside the company. (Planned successions exclude mergers and acquisitions, as well as situations when CEOs are abruptly forced out.) That’s nearly double the rate from 2004 to 2007. Outsiders, in effect, have become more of an intentional leadership choice than a stereotypical hire in a turnaround or crisis situation.