Why Interim and Boomerang CEOs Are on the Rise — and What It Says About Corporate Succession

According to data from the global outplacement firm Challenger, Gray & Christmas, CEO turnover reached new heights in 2025. Departures in April of this year were up 70% from the same month last year. Whether the reasons are personal or professional, there’s no denying that executives are vacating top spots at alarming rates.

Still, details matter when it comes to understanding this concerning trend. The same Challenger, Gray & Christmas study reports that 18% of all incoming CEOs this year were named on an interim basis — more than double that of the previous year. Additionally, the Financial Times reports that boomerang CEO appointments (those who left their post and later returned) are now at a 10-year high.

These numbers are far from a fad; they’re a sign of serious internal issues. Boards are increasingly unprepared for CEO departures, as inadequate succession planning has resulted in a collapsing leadership pipeline.

It’s essential for today’s directors to recognize the growing reliance on interim and boomerang CEOs and mitigate the impact this trend has on long-term corporate success.

What’s Behind the Rise in Interim and Boomerang CEOs? 

Several factors are contributing to a stark increase in interim and boomerang leaders. The first is the large number of baby boomers retiring from the workforce. Challenger, Gray & Christmas reports that, of the 860 CEOs who departed between January and April 2025, 197 (23%) left for retirement.

This reflects the emerging trend in the wider workforce. The well of “ready now” candidates is quickly drying up, as strategic planning for internal succession has been ignored in favor of quarter-to-quarter thinking among leadership teams.

Decades of short-termism — the tendency to prioritize short-term results over long-term strategic goals — have eroded leadership pipelines. As a result, boards are often caught without a ready internal successor.

What Do Short-Term CEO Appointments Bring to the Table? 

The appointment of a short-term CEO buys the board time to find a permanent replacement. The CEO can stabilize the company in the face of an unexpected departure. Boards can rest assured that the organization has a leader who, at the very least, will continue steering the ship in the direction in which it was already going.

Since they’re often former leaders or consultants, interim CEOs can also provide crisis-tested experience, as they are accustomed to quickly assessing problems and taking decisive action with speed, agility, and confidence. Their short-term outlook means they can make tough calls without concerns about internal politics.

Boomerang CEOs offer the benefit of instant familiarity, making it easier to build cohesiveness and move as a unit. They’ve already earned credibility with stakeholders and can provide reassurance to employees, investors, and partners while the board searches for a permanent solution.

The Risks of Interim and Boomerang CEOs 

Interim and boomerang CEOs both have their place, especially when a departure is sudden and unexpected. Still, relying on this approach to leadership planning can and does undermine long-term strategy.

The very nature of interim roles promotes short-termism, as many look to solve only the most pressing issues before their scheduled departure. They think and act tactically in a role that requires strategic thinking and decision-making.

Fortune magazine reports that boomerang CEOs aren’t always a better solution, with the average tenure at less than two years. This time frame can stall cultural cohesion, as directors may be hesitant to align themselves with a leader, vision, and strategy that is unlikely to stick around for the long term.

Relying on interim leadership may allow companies to adapt in light of uncertainty, but it can also make it difficult to build trust among team members and plan for long-term needs. In some cases, interim leadership is a sign that a company is merely reacting to high turnover rates rather than proactively planning for changes in leadership teams.

Boomerang and interim CEO appointments can project instability to markets, eroding both investor and consumer confidence. Interim CEOs interested in the permanent role may also try to manipulate the search process to their advantage, further diminishing the value of leadership pipelines.

Boards must carefully evaluate any external candidate for the interim slot and seriously consider appointing an internal successor or a trusted board member for greater continuity and trust.

What Boards Should Be Asking When Evaluating Interim and Boomerang Executives 

Boomerang and interim CEOs are stopgap measures, and they should be evaluated as such. During the search, the focus should not be on whether a candidate would make a good permanent executive but on whether they can stabilize the company and execute short-term goals.

Before designing a list of interview questions for a temporary CEO, start by defining your immediate goals. These will likely include stabilization, public relations, and special projects. It’s also essential to set a timeline for a permanent CEO search so both the board and temporary CEO understand how long they have to work toward solutions.

In interviewing candidates, seek to understand their perspectives, biases, adaptability, and ability to collaborate. Get to know their agendas and motivations and assess how that might impact their decision-making. Key question categories include:

• Stabilization Approach: How does the candidate intend to quickly establish credibility with employees, investors, and customers?
• Decision-Making Boundaries: Where does the candidate see their role stopping and the permanent CEO’s role starting?
• Succession Partnership: How will the candidate support the board in identifying and onboarding a long-term successor?

These questions test leadership presence under pressure, help guard against overreach (and underreach), and ensure alignment with the company’s mission. The interim candidate’s answers should demonstrate that they will not become a distraction to permanency.

Successful CEO Appointments Require Careful Consideration in Both the Short and Long Term 

Interim and boomerang CEOs are a means to an end, not the end itself. The board should use these appointments as short-term stabilizers while focusing on a rigorous search for the right permanent leader.

Temporary measures are not a strategy but a symptom of poor succession planning. The need for a short-term CEO should be a warning to take building your leadership pipeline more seriously. With the right planning, you can decrease organizational risk, creating a solid foundation for long-term success.

Written by Shawn Cole.
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