Should You Appoint an Interim CEO?

A sudden CEO departure can leave companies scrambling to fill the leadership void. Appointing an interim CEO might seem like a safe temporary solution, but in fact that decision often hurts market confidence and the company’s financial performance. Still, interim leaders are now involved in one out of three CEO transitions. Success or failure depends heavily on context: Boards must assess whether the departure was initiated by the board or the CEO and whether the organization is in a stable or crisis state. Then they can choose among four types of interim CEOs, each suited to a different context. Boards that make effective interim appointments do so by building readiness into governance, clarifying mandates, and securing workforce alignment—ensuring continuity and building a foundation for a successful permanent handover.

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