CEOs who ascend from entry-level positions to the top role, known as "CEO lifers," offer distinct advantages and risks to organizations, according to an Oct. 27 report from the Financial Times.
In September, Nike appointed Elliott Hill as CEO. Mr. Hill joined Nike as an intern in 1988 and held more than a dozen roles, from sales to global retail leadership, before briefly retiring in 2020. He now joins executives like General Motors' Mary Barra and Walmart’s Doug McMillon, who each spent decades at a single company before advancing to the top role.
These CEO lifers offer deep institutional knowledge and loyalty, which can improve employee morale and create visible pathways for career growth, experts told Financial Times. However, some experts argue that CEO lifers could potentially hinder innovation, as internal promotions can reinforce existing routines and hinder fresh insights that outside hires often bring.
For companies requiring major strategic shifts or operating in quickly evolving industries, external CEOs may offer a sharper edge, according to Monika Hamori, PhD, associate professor of human resource management at IE Business School in Madrid.
Building a diverse leadership team around CEO lifers can also be effective to bring in complementary skills and broaden strategic outlooks, according to Dr. Hamori.
"Executives with different prior industry or company affiliations could help counterbalance the skill sets of a CEO who grew up in a single firm," she told the Financial Times.
Moreover, insider CEOs can bring diverse perspectives back to their companies by joining an outside board or regularly networking with other CEOs.
About 20% of CEOs at large U.S. companies have been with their firms for more than 21 years, according to data from Altrata.
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