Demand for Interim CEOs Continues to Soar
Against a tide of global economic turbulence and high turnover rates at the C-suite level, demand for interim chief executive officers is soaring. According to a 2024 analysis of proprietary US and European market data by the talent company Business Talent Group, a whopping 56 percent of all requests for interim roles in 2024 were at the C-suite level—a 46 percent increase from 2023. And evidence shows the need for interim CEOs is especially strong, with a comparative report from 2023 indicating a 220 percent increase in requests for interim CEOs from 2022 to 2023.
As shareholders and boards seek to shuffle executive teams in response to financial woes or adverse public sentiment, or CEOs leave companies unexpectedly, companies are turning increasingly to interim CEOs to shore up the leadership gap. Yet finding experienced leaders with the skills to make hard financial decisions, recast upper-level management teams, and set the stage for a smooth transition can be a daunting challenge.
This hiring guide for interim CEOs aims to streamline the recruitment and hiring process, outlining the attributes to look for in executive talent and providing tips for crafting a job description, structuring a compensation package, and asking incisive interview questions. With the right interim CEO at the helm, your company can confidently navigate its leadership transition and come out stronger on the other side.
Skills Every Interim CEO Should Have
When searching for an interim CEO, it’s important to distinguish between candidates who have the skills and mindset to lead an organization through a high-pressure transition period and those less likely to succeed. Here are four attributes to look for:
Strategic Agility
An interim CEO must be able to quickly grasp an organization’s strategic needs and adapt accordingly. This requires a deep understanding of the business landscape, key competitors, and the internal challenges the company faces. A qualified candidate will understand how to quickly assess the company’s existing strategy, identify key areas for improvement, and make informed—and often difficult—financial and staffing decisions. Look for a systems thinker with exceptional foresight, mental fortitude, and proven experience helping organizations maintain business continuity during times of transition.
Strong Crisis Management Skills
The interim period often coincides with uncertainty—whether due to leadership concerns, financial distress, or a loss of trust in a company’s products or services. A top-tier interim CEO will bring proven crisis management skills, including the ability to stay calm under pressure; maintain clear communication with internal teams, shareholders, and governing bodies; and take swift actions in the face of adversity. Keep in mind that transitional CEOs don’t just manage day-to-day challenges; they work to reform ailing systems and set the stage for a permanent replacement to succeed.
Results-Oriented Execution
Highly qualified interim CEOs have a strong track record of delivering measurable, time-bound outcomes. Unlike permanent CEOs, who might focus on fundraising and long-term growth strategies, interim leaders are hired to deliver quick wins—whether by improving efficiency, boosting profitability, entering new markets, or laying the groundwork for a successful transition. Give preference to candidates who can point to data-driven results from previous roles and demonstrate how their strategic decisions drove these outcomes.
Leadership Presence
As with any CEO, an interim CEO must inspire employee confidence and maintain morale, but because of the internal turbulence that often accompanies interim leadership roles their challenge can be especially difficult. Interim executives often join companies when employees feel uncertain or apprehensive about the future and seek reassurance about the company’s prospects and the safety of their roles. Look for candidates with the emotional intelligence to build rapport with employees, executives, and board members; facilitate collaboration; and foster a sanguine company culture. The most successful interim CEOs are those who listen to and address employee concerns, even as they remain frank and decisive in their actions.
How Can You Identify the Ideal Interim CEO for You?
Hiring an interim CEO to guide your company through a transition requires a recruitment strategy that targets your most immediate needs. For instance, after Equifax’s data breach in September 2017, Paulino do Rego Barros Jr., who replaced outgoing CEO Richard Smith, apologized for the data breach in the Wall Street Journal, instituted services to restore the confidence of customers, and worked to root out the vulnerabilities that caused the breach. In this case, expertise with public messaging and data security were chief considerations for the role.
Yet, the reasons companies hire interim CEOs vary widely. Navigating a merger is a fundamentally different challenge than taking public-facing actions to repair damaged relationships with customers. Before you begin your search, it’s important to clarify the specific business challenge you’re attempting to address.
Define Your Problem Statement
A problem statement that clearly articulates your organization’s needs can help narrow your search to candidates with expertise aligned with your unique situation. In formulating your problem statement, consider these key questions:
-
Why is your organization hiring an interim CEO? Is the transition due to a sudden leadership gap, a strategic pivot, or a period of financial instability? Are there particular operational or cultural challenges that need immediate attention? Has the CEO lost the trust of shareholders? Defining your organization’s pain points will help ensure the interim CEO has the expertise to address them.
-
What is the timeline for the interim period? Understanding whether your need is for short-term stabilization (6-12 months) or a longer-term transition (12-18 months) will shape the type of candidate you target—for instance, someone with a highly focused turnaround skillset versus someone with a more long-term growth strategy.
-
What are your desired outcomes? Whether it’s boosting financial performance, guiding a company through a merger, reshaping organizational culture, or leading a permanent CEO search, identifying clear, measurable goals will help you select the most qualified candidates.
Determine Your Salary Range and Benefits
It’s crucial to determine a compensation package that is competitive and aligned with your organization’s budget and the level of responsibility the interim CEO will assume. Not surprisingly, interim CEOs are often more enticed by short-term, performance-based compensation packages than long-term incentives. However, this can be mutually beneficial, as pay-for-performance compensation agreements can help align executives’ financial interests with the company’s success.
According to Glassdoor, as of June 2024, the estimated median total pay for an interim CEO was $352,589, with an average salary of $197,418 per year. The additional pay of $155, 171 represents incentives such as cash bonuses and stock options, which can be tied to revenue growth, equity returns, share price appreciation, or other performance indicators.
In general, larger organizations or those in highly regulated industries should expect to pay more. Interim CEOs in these roles are expected to manage large teams, navigate complex stakeholder relationships, and oversee significant organizational changes—obligations that require a high level of organization, tough-mindedness, and exceptional communication skills. Similarly, candidates with extensive experience in the specific challenges an organization faces (e.g., crisis management, turnaround leadership, or M&A) may command higher pay. However, the higher premiums are often worth the investment, particularly given the truncated timeline for the role,
How to Write a Job Description for the Role
A clear, detailed job post will help ensure you hire an interim CEO with the skills, temperament, and experience to guide your organization through a successful transition. Be sure to highlight both the strategic and operational aspects of the role, emphasizing financial administration, strategic planning, crisis management, executive hiring, and communication with shareholders and the company’s board. Specify that the role requires a short-term commitment, typically ranging from six months to a year, and clarify the core objective, such as overseeing a merger, directing a permanent CEO search, or overseeing a financial restructuring.
Dynamic, high-touch roles are always going to be more enticing. To attract top talent, the post should highlight the unique aspects of the organization’s mission and how the candidate will help carry it forward. It’s generally a good idea to include the salary range and entice candidates with the benefits they can expect to receive, such as performance-tied bonuses, stock options, flexible work arrangements, comprehensive health packages, and relocation incentives.
What Are the Most Important Interim CEO Interview Questions?
During candidate interviews, it’s important to ask questions that assess the candidate’s leadership skills and experience managing executive transitions. Below are four essential interview questions to ask, along with suggested responses:
What strategies have you used to quickly assess and stabilize an organization in transition?
A strong response will demonstrate a structured approach to determining the company’s key challenges and priorities. This might include conducting a stakeholder assessment, reviewing financial and growth benchmarks, or identifying operational bottlenecks. Top candidates will highlight their ability to engage with key personnel—executives, managers, and frontline staff—to gain insight into the company’s culture and work practices. Be attentive to responses that emphasize data-driven outcomes, methodologies for evaluating actions based on their projected impact, and the ability to execute rapid changes while maintaining organizational stability.
Can you provide examples of how you’ve led organizations through times of uncertainty or crisis?
An experienced interim CEO will share specific examples of professional roles in which they managed high-stakes situations, such as cash flow shortfalls, public relations crises, legal disputes, or unexpected leadership turnover. Give preference to candidates who emphasize cool-headed decision-making, transparent communication protocols, and the leadership skills to build trust in the company’s financial position and strategic direction. Follow-up by asking the candidate to describe the state of the company when they arrived and when they left. How did they help it change its trajectory?
As an interim CEO, how would you ensure alignment with the organization’s board of directors and leadership team?
This question assesses a candidate’s ability to communicate effectively with the company’s governing body and executive team—an essential skill for an interim CEO. A qualified candidate will explain how they built strong relationships with high-level stakeholders by setting realistic expectations, documenting initiatives and outcomes, and establishing open channels of communication. The best responses will highlight how the candidate cultivates a unified leadership approach.
Can you describe a time when you had to make a difficult decision quickly in an interim role, and how you handled it?
A calm, yet decisive, leadership style is crucial during an executive transition. A highly qualified candidate will provide a clear example of a high-pressure situation in which they made a swift, considered decision. The response should demonstrate decisive leadership, evidence-based problem solving, and the ability to communicate effectively with stakeholders. If the candidate does not do so voluntarily, be sure to ask them about the outcome of their decision. How was the company better for it?
Why Do Companies Hire Interim CEOs?
When a company hires an interim CEO, they are seeking a new direction. They want a results-driven leader who can provide objective oversight during a period of uncertainty—whether that’s due to a leadership vacuum, corporate restructuring, or the need for a financial turnaround. In many cases, an interim CEO doesn’t just offer a fresh perspective; they make difficult, sometimes unpopular, decisions permanent leaders find harder to implement due to the psychological weight of longstanding policies and relationships. By stepping in quickly and decisively, a talented interim CEO can ensure your organization remains resilient and positioned for long-term success.
