Succession gaps erode CEO confidence in C-suite despite stronger collaboration: report

Even as collaboration and leadership capability in executive teams show modest improvement, a weak succession pipeline is emerging as one of the biggest concerns for CEOs.

New findings from Leadership Confidence Index (LCI) by Russell Reynolds Associates reveal that confidence in C-suite succession has fallen to 50.5 points, making it one of the lowest-scoring areas in the latest Leadership Confidence Index. The data also show that only 36% of CEOs say they have a successful C-suite succession strategy in place, down from 45% in 2022, highlighting growing anxiety among top leaders about leadership continuity and the depth of future executive talent.

The report analysed nearly five years of global survey data, and suggests that many chief executives are increasingly uncertain about whether their C-suite teams are equipped to lead organisations through the next phase of change.

It describes CEO confidence in the C-suite as “one of the clearest indicators of whether strategy will translate into results.” Yet the latest data show that confidence is gradually eroding across several critical leadership dimensions.

Future readiness emerges as the biggest concern

The sharpest decline is in perceptions of “future readiness”, one of four dimensions tracked by the index, alongside core capability, strategic acumen, and purpose and values.

Future readiness measures whether leadership teams can effectively embrace digital transformation, adapt to changing workforce expectations, reskill employees for the future, and lead organisational change.

Scores in this area have dropped steadily, falling to 64.0 in 2025 from a peak of 75.1 in 2021, with an average decline of 2.8 points annually.

“The challenge is not a lack of strategic vision,” the report notes. “It is a gap in execution confidence. CEOs may see where the organisation needs to go, but they’re less certain their teams can mobilise fast enough to get there.”

Confidence in the C-suite’s ability to seize digital transformation opportunities also slipped slightly to 65.2 in 2025, down from the previous year.

The data highlight a widening gap between AI ambition and leadership capability. While 65% of CEOs say they are excited about AI’s potential to create new revenue streams and 83% expect productivity gains, fewer than half (47%) believe their organisations have forward-thinking leadership capable of aligning resources to harness generative AI effectively.

Collaboration improves capability scores

Not all indicators are moving downward. For the first time since 2021, CEO confidence in C-suite core capabilities has improved, rising to 70.0 points, up 2.3 points from 2024.

The improvement is largely driven by stronger perceptions of team effectiveness and collaboration, as well as leadership teams’ ability to role-model culture and organisational values.

Increasingly, CEOs are evaluating capability not just by individual executive performance, but by how effectively the leadership team operates as a cohesive unit capable of balancing short-term performance with long-term growth.

Succession planning remains a weak spot

Despite modest gains in collaboration and capability, succession planning continues to drag down CEO confidence. Confidence in C-suite succession declined to 50.5 points, among the lowest-scoring dimensions in the index. Since 2023, only 36% of CEOs report having a successful C-suite succession strategy, down from 45% in 2022.

Board confidence is similarly fragile, with fewer than half of directors believing their organisation’s CEO succession plans will succeed.

The report warns that weak succession pipelines can directly affect organisational stability.

“When leadership continuity is uncertain, strategic risk appetite contracts, long-term initiatives become harder to sustain and governance exposure increases,” the report states.

Confidence in purpose and sustainability also declines

CEO confidence in the C-suite’s alignment around purpose and values is also trending downward, falling to 62.2 points in 2025.

The steepest drop within this dimension was recorded in sustainability, which declined to 58.9 points, reflecting growing complexity around regulatory expectations, stakeholder demands, and operational execution.

For many organisations, the report notes, shifting standards and technology readiness gaps are creating “planning fatigue,” slowing progress on sustainability commitments.

Confidence strongly linked to performance

The index highlights a strong link between leadership confidence and business outcomes.

Organisations where CEOs report high confidence in their C-suite teams are 2.8 times more likely to meet or exceed financial growth targets, and 2.3 times more likely to lead competitors on innovation, compared with companies where confidence is low.

When leadership confidence is high, the report suggests, decision-making accelerates and strategic commitments hold. When confidence is weak, oversight intensifies, escalation rises and execution slows.

Building stronger leadership benches

To close the confidence gap, the report urges CEOs to prioritise transformation readiness and strengthen leadership pipelines.

This includes giving executives more exposure to high-stakes transformation challenges, encouraging continuous leadership development, and building a deeper pool of future leaders beyond the immediate C-suite.

“Leaders who feel their organisations are preparing them to lead in an uncertain future, and giving them challenging experiences to learn, are four times more likely to stay,” the report notes.

Strengthening that leadership reservoir, it concludes, will be critical for companies seeking to navigate rapid technological change while maintaining long-term strategic stability.