November 19, 2025 Executive Compensation Human Capital Management Reports

CEO Succession Practices: 2025 Edition in the Russell 3000 and S&P 500

This report analyzes CEO demographics and succession practices in the Russell 3000 and S&P 500, drawing on extensive longitudinal data to highlight shifting turnover dynamics, diversity trends, tenure, and approaches to leadership continuity.

Trusted Insights for What’s Ahead®

  • The projected S&P 500 CEO succession rate rose sharply from 2024. In contrast, the broader Russell 3000 rate held steady, underscoring that the spike is concentrated among the largest firms as boards accelerated transitions amid investor scrutiny, volatile markets, and a shifting regulatory environment.
  • After years of incremental progress, 2025 saw a slowing down in CEO demographic diversity trends. Female representation plateaued for the first time in four years, and the share of non-White CEOs declined slightly in both indexes.
  • Departing CEO tenure rebounded in 2025 after hitting a trough in 2024. Average tenure rose in both the Russell 3000 and the S&P 500, which likely reflects more planned retirements and deferred transitions, as well as some long-tenured leaders exiting under investor or board scrutiny.
  • CEO turnover remained high among low-performing companies and is rising even among the better performers. An increase in CEO departures among stronger performers suggests both that top performers are retiring and that boards are using succession as a strategic tool, not just a corrective for weak results. (Figure 8)
  • Internal promotion remains the predominant path to the CEO role, but 2025 marked a shift at large-cap companies. In the S&P 500, external hires nearly doubled, pushing internal promotions below 70% for the first time in eight years.

Contributors

Blair Jones

Greg Arnold



In Collaboration With

Ariane Marchis-Mouren

Senior Researcher, Corporate Governance

Andrew Jones, PhD

Principal Researcher, Governance & Sustainability Center

Jason D. Schloetzer

Associate Professor, McDonough School of Business at Georgetown University

Related Insights