The Premium Price for Interim CEOs
The number of interim CEOs at big firms has jumped sharply. So has their pay.
It’s great to be in demand, especially if you’re an interim CEO.
With CEO exits hitting record numbers in recent years, many firms are opting to bring in interim replacements to fill the void. And that sudden demand is placing a premium price on these executives—as high as 150% to 500% of a permanent CEO’s equivalent annual salary. Indeed, according to one study, median interim-CEO pay rose 19% in 2025 compared to 2021. Among S&P 500 CEOs, it doubled.
To be sure, interims are not receiving long-term rewards, which may balance out the premium. But experts say many boards are struggling to figure out the right salary to offer them, especially in such a competitive market. While boards and lawyers have historically spent months hashing out a permanent CEO’s pay details, they no longer have that luxury. Indeed, paying an interim too much—or too little—is a big concern. “Clients often don’t understand the financials behind an interim,” says Monte Weirman, president of Korn Ferry’s North America Interim business.
The stakes are high: The number of CEO departures this year is only slightly off last year’s record pace, and organizations continue to seek out interim replacements. To date, 2026 has seen high-profile interim appointments in industries such as media, retail, hospitality, beverage, and non-profit. Interim executives are often installed on relatively short notice to shepherd the organization through crises or major transactions, such as mergers. About 20% of interim CEOs subsequently fill the post permanently, says Mike Distefano, CEO of Korn Ferry’s Professional Search and Interim businesses.
Still, since interim CEOs are, in theory, only going to be with the organization a short time, they aren't offered the same long-term equity incentives as a permanent CEO, says Tom McMullen, leader of Korn Ferry’s North America Total Rewards expertise group. Given that such long-term incentives often constitute most of a permanent CEO’s compensation, organizations tend to pay top interim executives a higher cash salary. Depending on an appointment’s structure, the executive might be officially employed not by the organization they’ve been asked to lead, but rather by the professional-search organization that found them.
The urgency of a company’s need for leadership is a key factor, experts say. If the situation has reached crisis level, the price will be higher, Distefano notes. “If it’s a planned situation, then the compensation is a little more pragmatic,” he says. It also matters which skill sets and experience the firm needs. The critical mass of CEO departures has created a decent supply of former top leaders, some of whom may be amenable to taking on an interim role. But some organizations need such a high degree of specialization that their field of candidates realistically consists of just one or two people.
The best way for a firm to save on interim costs is to hire someone internal—but not every firm has someone ready to step up.
Learn more about Korn Ferry's Interim Talent capabilities.
