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Home CHRO

Internal succession dominates APAC leadership appointments

FutureCOO Editors by FutureCOO Editors
August 6, 2025
Photo by Kampus Production: https://www.pexels.com/photo/men-in-black-suit-working-together-8428054/

Photo by Kampus Production: https://www.pexels.com/photo/men-in-black-suit-working-together-8428054/

A recent report from Russell Reynolds Associates (RRA) has revealed that the Asia-Pacific (APAC) region recorded a CEO turnover rate of 7% in the first half of 2025, which is marginally higher than the global average of 6%.

This turnover reflects broader trends in corporate leadership dynamics, as organisations grapple with regulatory uncertainties and shifting market conditions.

Notably, CEO appointments globally have hit an eight-year low, with only 114 appointments made, marking a 19% decrease from H1 2024.

The report tracks CEO departures across major stock indices, including the ASX 200 in Australia, the Nikkei 225 in Japan, and the HANG SENG in Hong Kong.

Interestingly, while many regions are adopting a cautious approach to leadership changes, Australia and Japan are experiencing significantly higher turnover rates. Japan alone accounted for 23 CEO departures, while Australia saw 11.

A key factor in this turnover is the trend towards internal succession, which has proven to bolster leadership continuity. Approximately 83% of new CEO appointments in the region during H1 2025 were filled through internal promotions, with many of these being first-time CEOs.

The Chief Financial Officer (CFO) role remains a critical pathway to the CEO position, accounting for around 26% of these successions. Furthermore, about one-third of CEO changes were planned, indicating a more mature approach to leadership transitions.

In terms of regional stability, CEO turnover varied within APAC, with Japan driving the majority of changes. Hong Kong recorded a turnover rate of 2.4%, while Australia and India reported rates of 6% and 8%, respectively. The overall average tenure for outgoing CEOs has decreased to 6.8 years, the lowest since tracking began in 2018.

Singapore stands out with a longer average CEO tenure of 8.8 years, reflecting a strong commitment to succession planning and leadership development. Notably, 82.5% of CEO appointments were internal promotions, consistent with the previous year.

Euan Kenworthy, who leads RRA’s Southeast Asia operations, emphasised the need for agility and resilience in navigating today’s complex business landscape.

Companies that prioritise strategic succession planning and invest in nurturing internal talent are better positioned to achieve long-term growth in these dynamic market conditions.

Related:  SG and US lead world in self-driving vehicle readiness
Tags: Russell Reynolds Associatessuccession planning
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Photo by Kampus Production: https://www.pexels.com/photo/men-in-black-suit-working-together-8428054/

Internal succession dominates APAC leadership appointments

August 6, 2025
Photo by Anamul Rezwan: https://www.pexels.com/photo/two-man-holding-white-paper-1216589/

Singapore construction investing 28% of expenditure into technology

August 6, 2025
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