Internal CEO appointments outperform external candidates but former COOs get better results than CFOs

Internally appointed CEOs are likely to outperform external candidate with superior performance in profits and share value new research suggests.

The FTSE 350 Board Review from Thorburn McAlister and the University of Southampton Management School found candidates recruited from within delivered, on average, 5.4% growth, compared to an average of 3.6% delivered by external recruits.

The most successful CEOs recruited from within have been shown to come from operation roles as opposed to employees with a financial background.

Former COOs delivered share price growth of 16% compared to CFOs who raised value by just 1%.