Boards Turn to Retired Executives as Internal CEO Talent Pools Dwindle

Companies such as Cracker Barrel, Verizon and Boeing are appointing former CEOs who have recently retired to fill top posts, reflecting a shortage of ready-made successors.

When Cracker Barrel announced the exit of CEO Julie Masino, the chain installed 69-year-old Dave Deno, a former chief of Bloomin’ Brands, prompting questions about his fit for a brand seeking younger customers. The pattern extends beyond restaurants; Verizon and Boeing have each named retired leaders Dan Schulman and Kelly Ortberg to their helm. Russell Reynolds Associates reports that 34% of CEOs appointed by S&P 500 firms in early 2026 had previously run a public company, up from 22% a year earlier.

Shawn Cole of Cowen Partners says the trend reflects the difficulty of conducting searches when internal pipelines are thin, as CEOs now serve longer—average age rose to 61 and tenure to nine years. External hires made up 33% of new S&P 500 CEOs last year, double the 18% seen in 2024, underscoring the growing reliance on outsiders, including retirees. While seasoned executives can provide stability, critics warn that hiring at the tail end of careers may only postpone deeper leadership challenges.