A recent study by global consulting firm Russell Reynolds Associates revealed that the number of CEO departures worldwide during the first half of 2026 dropped to 101, the lowest in nine years. This represents a decline from 118 CEO departures during the same period in 2025. The study, part of the Russell Reynolds Global CEO Turnover Index, suggests a stabilization in CEO transitions after two years of significant changes in major financial markets.
The study also found that the pace of new CEO appointments remained steady, with 130 appointments recorded, close to the nine-year average of 129 appointments. This stability in CEO turnover rates coincides with improved market conditions, including rising stock market indices in major economies, particularly the United States. As a result, the average tenure of departing CEOs increased to nine years, compared to 6.6 years in the first half of 2025.
The Russell Reynolds study noted that boards of directors are increasingly relying on experienced leaders, with 30 out of 130 new CEOs (23%) having previously led a listed company. This is the highest proportion in nine years. Within the S&P 500 index, 34% of new CEOs had prior experience leading a listed company, with 11 out of 32 new CEOs having done so. Nine of these CEOs were appointed internally, either from the board of directors or from within the company.
The study highlighted that 88% of new CEOs in the S&P 500 index were appointed internally, indicating a trend towards promoting from within. This approach allows boards to balance internal succession planning with external expertise. According to Nicholas Mansit, Head of the Middle East at Russell Reynolds Associates, this shift reflects a growing emphasis on leadership continuity and succession planning.
Mansit noted that boards are prioritizing leadership continuity and seeking to combine internal development with external expertise. He emphasized the importance of building a robust leadership pipeline and succession planning to ensure sustainable growth. In the UAE, where companies are increasingly attracting international investment and expanding their regional presence, developing effective leadership is crucial.
The study's findings have significant implications for companies in the UAE, where there is a growing need for effective leadership to drive sustainable growth. With the country's economy attracting more international investment, companies must develop strong leadership pipelines to support their expansion plans. The Russell Reynolds study provides valuable insights into global CEO trends, highlighting the importance of leadership continuity and succession planning.
The report also emphasized that companies must be proactive in developing their leadership pipelines, rather than waiting until the need arises. By doing so, they can ensure a smooth transition of leadership and maintain business continuity. The study's findings are based on data from the Russell Reynolds Global CEO Turnover Index, which tracks CEO transitions worldwide.
Key points
- Global CEO turnover rate drops to 101 in H1 2026, lowest in 9 years.
- 23% of new CEOs have previously led a listed company, highest in 9 years.
- 88% of new CEOs in S&P 500 index were appointed internally.
