Harvard Business Review LogoAugust 5, 2026Westend61/Getty ImagesInternal CEO succession candidates are primarily judged on whether they can lead the enterprise. Lateral hires are judged on two dimensions: whether they can lead the enterprise and whether theyBoards often hire senior leaders from outside the company to strengthen their CEO succession bench. When internal options appear limited, companies recruit accomplished division presidents, regional CEOs, CFOs, or functional leaders into roles one or two levels below the chief executive.
Why Lateral Hires Rarely Become CEO
Internal CEO succession candidates are primarily judged on whether they can lead the enterprise. Lateral hires are judged on two dimensions: whether they can lead the enterprise and whether they have earned the legitimacy to represent it. Most succession systems rigorously assess the first and largely leave the second to chance.
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