Interim Leadership: How Temporary Executive Roles Drive Change and Stability

If the last few years have proven anything, it’s this: stability in leadership is no longer guaranteed. Executives leave unexpectedly. Market conditions shift overnight. Companies reorganize, transform, merge, expand, contract; sometimes all in the same quarter. 

And in the middle of all that? The business still needs direction. 

That’s where interim leadership and temporary executive roles come into play. These experienced leaders can step into a business at a moment’s notice and provide clarity, execution, and strategy during moments when consistency matters most. 

At PeopleSolutions, we’ve seen organizations of all sizes use interim leaders to stabilize operations, navigate change, or simply buy the time needed to find the right long-term executive. And the data shows that this approach isn’t just increasing; it’s accelerating. 

 

Why Interim Leadership Is Rising (Fast) 

If it seems like you’re hearing more about interim CEOs, CFOs, COOs, and CTOs… you are. And not just anecdotally. 

A recent analysis found that 33% of newly appointed U.S. CEOs in early 2025 were interim appointments, compared to just 9% during the same period the previous year. That’s more than a 3x increase in interim leadership appointments. 

This spike is a response to several major business trends: 

1. Executive turnover is rising

CEO turnover has been increasing across industries, creating leadership gaps at unprecedented levels. One major 2025 review highlighted a 14% increase in CEO’s leaving their positions since 2024. This article shows the continuing surges in CEO transitions and noted boards’ increasing reliance on interim roles to stabilize the business. 

2. Boards want time to make better long-term hiring decisions

Rushed executive hires are expensive and risky. Interim leaders provide breathing room for companies to continue their search for a long-term solution while covering the needs of the business in the meantime. 

3. Organizations need agility

Major transitions (digital transformation, restructurings, M&A, regulatory changes) often require seasoned leaders who can execute fast. An interim leader can take over these challenges for the time being while companies work to find a more permanent solution. 

4. Specialized experience is in demand

Companies increasingly seek leaders with niche skill sets for short-term, mission-critical initiatives. 

In other words: interim leadership is no longer a “backup plan.” It’s becoming a default strategic option for modern organizations. 

What Makes a Temporary Executive So Effective? 

When PeopleSolutions places an interim leader, we focus on individuals who bring real-world operating experience; people who have “been there, done that” in multiple organizations. 

A widely cited survey of interim executives revealed: 

• 61% previously served as CEOs 

• 52% held COO roles 

• 28% served as CFOs 

• Many held CMO, CIO, CTO, or General Manager positions 

And it doesn’t stop there. 

Deep Experience 

Most interim executives have 10–20 years of high-level experience. Less than 3% have fewer than five years. 

Cross-Industry Expertise 

Interim leaders frequently bring experience spanning: 

• Technology 

• Manufacturing 

• Healthcare 

• Finance 

• Retail 

• Professional Services 

This cross-pollination of knowledge gives companies access to strategies that may not exist internally and brings a fresh perspective to organizations. 

Hands-On Execution 

More than anything, interim executives are action oriented.
According to the same survey: 

• 84% helped organizations scale growth 

• 64% supported M&A efforts 

• 60% implemented major technology systems 

• 56% helped launch new products 

Interims aren’t consultants. They don’t stop at recommendations; they execute, coach, and build. 

 

When Companies Should Consider Interim Leadership 

At PeopleSolutions, we believe interim leadership is most valuable when timing, complexity, and expectations collide. Here are the scenarios where a temporary executive can make the biggest impact. 

Sudden Executive Departures 

Whether due to resignation, health issues, performance concerns, or internal restructuring, unexpected vacancies can destabilize a company. 

Interim leaders provide immediate continuity. 

The New York State Society of CPAs noted that interim leadership has become a stabilizing force following unexpected CEO departures. 

Company-Wide Transformations 

Major projects (digital transformations, ERP implementations, and reorganizations) need leaders who have navigated these transitions before. 

Interim leaders often have dozens of transformations under their belts. The experience brought to the table by these temporary leaders can often lend a fresh perspective that is much needed during times of change.  

Mergers and Acquisitions 

M&A activity frequently requires neutral, experienced leadership to: 

• Lead integration teams 

• Manage culture alignment 

• Oversee restructuring 

• Maintain business continuity during chaos 

With 64% of interim executives having M&A experience, this is one of the strongest use cases. 

High-Growth or Scaling Stages 

Rapid growth can break systems. An interim COO, CTO, or CFO can help stabilize operations and put proper infrastructure in place. 

Leadership Gaps During Executive Search 

Many companies underestimate how long it takes to hire a permanent executive. Six months is typical. A year is not unusual. 

Without an interim leader, projects stall. Teams lose direction. Stakeholders question stability. 

An interim leader ensures none of that happens. 

 

Pros and Cons of Temporary Executive Roles 

Like any leadership strategy, interim roles come with tradeoffs. Smart companies consider both sides before making a decision. 

The Benefits of Interim Leadership 

Speed and Flexibility 

Permanent executive searches can take 6-12 months. Interim leaders can start in days or weeks. 

Expertise Without Long-Term Commitment 

Companies get high-caliber leadership precisely when they need it; without long-term overhead or risk. 

Objective Perspective 

Interim leaders aren’t weighed down by internal politics. They’re free to make clear, unbiased decisions. 

Proven Leadership Under Pressure 

Interim executives are used to walking into messy, ambiguous situations and quickly creating structure. Years of previous experience can easily be applied to their new position. 

Protecting Momentum 

Strategic projects, revenue pipelines and culture initiatives can all be taken care of by a temporary leader. Nothing needs to pause while the executive search continues. 

 

The Challenges of Interim Leadership 

Interim roles aren’t perfect. Understanding the tradeoffs helps minimize risk. 

Cultural Uncertainty and Change Fatigue 

Long periods under interim leadership can cause confusion or delay long-term initiatives. 

Incentive Misalignment 

A WTW analysis highlights that interim executives often receive reduced long-term incentive compensation, which can create misalignment. 

Lower Chance of Becoming Permanent 

A comprehensive study by The Conference Board found that only about 9% of interim CEOs at major U.S. companies are eventually appointed permanently. 

Elevated Performance Pressure 

Interim leaders often step into challenging situations and must deliver results fast, sometimes under heightened scrutiny, especially from boards. 

Despite these challenges, the benefits often outweigh the risks when the role is matched thoughtfully to the situation; something PeopleSolutions specializes in. 

How PeopleSolutions Helps Organizations Leverage Interim Leadership 

Interim leadership works best when the selection process is strategic. PeopleSolutions partners with organizations to match the right temporary executive to the right challenge. 

Here’s how we help: 

Rapid Deployment Without Sacrificing Fit 

We move fast, but never at the expense of alignment. Our process ensures interim leaders match your culture, challenges, and goals. 

Access to Proven Leaders With Deep Expertise 

Our network includes executives with decades of experience in: 

• Turnarounds 

• Growth scaling 

• Operational restructuring 

• Finance modernization 

• Technology transformation 

• M&A integration 

• Culture building and leadership development 

We have access to a database of over 6 million people to choose from and we know how to find the right fit for your needs. 

Clarity, Structure, and Leadership Stability 

Interim leaders provide calm, direction, and cohesion during periods of uncertainty. We know how to find people who bring stability to the organizations they’re a part of. 

Strategic Support During Executive Search 

We work alongside your internal team or search partners to ensure your permanent hire enters a stable, well-operated environment. 

The Option to Convert to Permanent 

If the fit is perfect, some interims stay on. And if not, they help build stronger leadership foundations before the next leader arrives.  

 

Why Interim Leadership Is Here to Stay 

The business environment of 2025 has been defined by rapid change; technological disruption, economic volatility, workforce shifts, and evolving organizational demands. 

Interim leadership is rising because it matches the tempo of modern businesses. 

Companies need leaders who can: 

• Start immediately 

• Absorb complexity fast 

• Make tough decisions 

• Execute under pressure 

• Guide teams through uncertainty 

• Maintain or accelerate momentum 

• Stabilize the organization while the future is defined 

At PeopleSolutions, we see interim leadership as a strategic advantage. The right temporary executive can create lasting results that ripple long after their engagement ends. 

 

Is Your Organization Ready for Interim Leadership? 

If your company is navigating uncertainty, shifting strategy, or facing leadership turnover, interim leadership may be the smartest path forward. 

A temporary executive can provide stability.
They can preserve momentum.
They can deliver clarity and direction.
They can prepare the organization for what comes next. 

If you want to explore whether an interim leader could help your company through a transition or accelerate a major initiative, PeopleSolutions is here to help you evaluate your options. To learn more about our interim leadership placement, get in touch with one of our recruiters. We’re here to help bring stability to the next chapter of your business’s life.