When your company needs a new leader, ‘Insider or Outsider?’ is the wrong question

The dilemma of hiring a new leader, whether from within or outside, was spotlighted in 2024 when Nike opted for an internal pick with Elliott Hill while Starbucks chose an outsider in Brian Niccol. This choice reflects a broader trend where U.S. public companies made more CEO changes that year. The implications are significant as both strategies have distinct advantages and risks; insiders may understand the company's culture and operations, while outsiders can bring fresh perspectives and new ideas. This shift underscores the evolving approach to leadership in corporate America, emphasizing adaptability and innovation over traditional loyalty.