Why Companies Are Rehiring Retired CEOs and What It Means for Succession

Companies are increasingly turning to former CEOs to steer them through periods of pressure, as seen with Cracker Barrel hiring 69-year-old David Deno, Nike reinstating Elliott Hill, Verizon bringing back Dan Schulman from PayPal, and Disney reinstating Bob Iger. Boards favor seasoned executives because they appear safer than untested candidates, a pattern reflected in a Russell Reynolds Associates survey that found 34% of S&P 500 CEOs appointed in the first half of 2026 had already run a public firm, up from 22% the previous year.

However, each return disrupts the usual succession cascade, postponing promotions for division heads and lower-level managers who have been grooming for advancement. This can lead to talent attrition, reduced willingness to take on challenging assignments, and a demotivated workforce watching from below the C-suite. Moreover, the pool of retired CEOs is largely composed of leaders from less diverse eras, potentially pulling boards toward a less inclusive talent base despite efforts to build diverse pipelines. While experienced leaders can be valuable in crises, relying on them may create tougher succession challenges down the line.