CFO Slice

A new Harvard Business Review analysis of leadership teams across S&P 500 companies has found that most executives reach the C-suite through long-term internal promotion rather than external hiring. The study, which examined nine common executive leadership roles across S&P 500 firms, found that nearly 60% of C-suite functional leaders were promoted internally, rising to as high as 80% in some positions. Internally promoted executives had spent an average of 16 years with their companies, while externally hired executives were often recruited because they had previously held the same role elsewhere. Researchers also found that CEO transitions frequently trigger wider leadership reshuffles. The analysis showed that representation of women and historically underrepresented groups in C-suite roles has risen to 43%, although diversity varies significantly by function. Human resources and communications roles showed the highest representation, while CEO and COO positions remained far less diverse. The report concluded that aspiring executives increasingly need broader leadership capabilities beyond technical expertise, including strategic influence, cross-functional collaboration, and experience leading teams through uncertainty and change.