Companies across the Asia-Pacific (APAC) region are increasingly appointing internal candidates as CEOs, according to the latest Global CEO Turnover Index by Russell Reynolds Associates. This trend, observed in the first three quarters of 2025, shows that 83% of new CEO appointments in APAC are internal promotions, compared to 72% globally. The preference for internal candidates is seen as a strategic move to maintain stability and leverage institutional knowledge amidst a turbulent global business environment.
The report highlights a significant rise in first-time CEOs, with 97% of new hires in APAC being first-time leaders, reflecting a global trend where 88% of CEO appointments are first-timers. This shift suggests that boards are valuing fresh perspectives to navigate ongoing market complexities. Euan Kenworthy, leading Russell Reynolds Associates Southeast Asia operations, emphasised the importance of developing internal talent, stating, “For internal succession to succeed, organisations must proactively identify and develop high-potential talent.”
APAC has recorded 59 CEO departures so far in 2025, with Japan accounting for nearly half. The average tenure for outgoing CEOs in the region is now 5.9 years, shorter than the global average of 7.2 years. Notably, Singaporean CEOs have longer tenures, averaging 8.8 years, whilst Hong Kong sees shorter tenures at 3.7 years. This trend towards shorter tenures may be driven by the need for agility in response to rapid market changes and regulatory shifts.
As APAC companies continue to adapt to an evolving business landscape, the focus on internal leadership development and the rise of first-time CEOs highlight a commitment to agility and innovation, crucial for sustainable growth in uncertain times.
