Q3 2025 CEO Turnover Index: Firms Prioritise Internal CEOs Amidst Rising Turnover

27 November 2025, Singapore – While CEO turnover is reaching record highs globally, companies across the Asia-Pacific (APAC) region are showing a distinct preference for internal candidates, signalling a strategic bet on stability and deep institutional knowledge, according to Russell Reynolds Associates' (RRA) latest Global CEO Turnover Index.

The Index reveals that 83% of new CEO appointments in APAC in 2025 year-to-date (YTD) are internal, outpacing the global figure of 72%. This strong preference for promoting from within suggests a deliberate strategy to leverage existing knowledge, experience and familiarity with the company culture amidst a turbulent global landscape, where global CEO departures have reached a historic eight-year high, and is up 5% YTD compared to the same period in 2024.

In Q3 2025, the APAC region recorded 12 CEO departures, with Australia accounting for 10 of them. The Global Index of CEO Turnover tracks CEO departures from constituent companies across global stock indices, including ASX 200 (Australia), HANG SENG (Hong Kong), Nikkei 225 (Japan), NSE Nifty 50 (India) and STI (Singapore).

Surge In First Time CEOs Within APAC

While internal CEO appointments are driving organisational movements within APAC, the region is also seeing a surge in first-time CEOs. 97% of new CEO hires in APAC year-to-date (YTD) were first-time CEOs, mirroring the global trend where the majority (88%) of CEO appointments are first-time leaders. For many public boards, the decision to elect a first-time CEO might reflect a belief that new perspectives are essential to navigating ongoing transformation and market complexity.

Elevated CEO Turnover Reflects New Leadership Realities

APAC reported 59 de D, with Japan alone accounting for 48% of this turnover. This indicates that some APAC companies are actively adapting leadership in response to disruption, investor activism and strategic realignments.

“As the CEO role continues to evolve amid unprecedented market dynamics and stakeholder expectations, APAC organisations are strengthening internal leadership pipelines and embracing first-time CEOs,” said Euan Kenworthy from Russell Reynolds Associates. “For internal succession to succeed, organisations must proactively identify and develop high-potential talent, offering them tailored growth opportunities and exposing them to critical leadership experiences. Boards and sitting CEOs play a crucial role in mentoring successors and fostering a supportive environment that balances continuity with fresh perspectives, enabling sustainable transformation in today’s complex business landscape.”

Outgoing CEO Tenures in APAC Continue to Shorten

The average tenure for outgoing APAC CEOs in Q3 2025 YTD is around 5.9 years, down from 6.1 in the same period in 2024, and shorter than the global average of 7.2 years. However, there are notable differences across APAC, with Singapore’s CEOs staying in the role longer with an average tenure of 8.8 years, while Hong Kong has a significant shorter average tenure of 3.7 years. Shorter tenures could be due to board demands for agility and responsiveness amid rapid market shifts and regulatory changes, prompting companies to replace CEOs earlier in the business lifecycle to sustain strategic momentum.

As APAC companies navigate an increasingly complex business landscape, the sustained focus on internal leadership development and the rise of first-time CEOs underscore a strategic commitment to agility and transformation. These evolving leadership dynamics highlight the region’s proactive approach to balancing continuity with innovation, which is essential for driving sustainable growth in uncertain times.

Contact

Joann Chin
Russell Reynolds Associates
+65 6496 0614
joann.chin@russellreynolds.com