Here Is Why Versatile CEOs Are In Such High Demand 

What happens when private equity and public company leadership models collide? A new report from Spencer Stuart highlights the key differences and lessons both sides can learn from each other. Evan Berta, Associate at Hunt Scanlon Ventures, explores the implications for corporate leadership.

The leadership dynamics of private equity-backed firms and public companies have long been viewed as starkly different.

Private equity leaders thrive on fast value creation, a highly involved ownership model, and a clear exit strategy – often within a five-year window. Public company chief executives, on the other hand, navigate board politics, captain shareholder expectations, and scrutinize quarterly earnings over much longer tenures. 

But in a newly released report from Spencer Stuart, The CEO’s Perspective: What Public Companies and Private Equity Can Learn from Each Other, these two worlds are converging.

The CEO Talent Shortage

With nearly 23,000 private equity portfolio companies in the U.S., and an estimated 71% of them installing new CEOs upon acquisition, the crossover of leadership talent between the private and public sectors is more relevant than ever. 

Related: 2025 Pegged to be a Pivotal Year for U.S. Private Equity – ExitUp

As the talent pool for top executives shrinks and demands for adaptable leadership grow, companies are increasingly looking beyond traditional experience benchmarks to find the right leaders.

Spencer Stuart’s research underscores a fundamental truth: private equity is about speed, while public companies emphasize endurance. 

PE-owned businesses are laser-focused on rapid value creation and operational efficiency, with owners often deeply embedded in strategy and execution. Meanwhile, public company CEOs must balance short-term financial expectations with long-term corporate vision, making investor relations and governance a central part of their role.

“We’re entering an era where the best CEOs are defined not by where they came from, but by how well they can adapt.”

“The transition from public company CEO to private equity-backed leader can be a shock,” said Evan Berta, an Associate at Hunt Scanlon Ventures. “The urgency is amplified, the accountability is direct, and there is little room for missteps,” he said. “But for the right leader, PE is the place where decisions can be made swiftly and with clear alignment.”

Public companies, by contrast, can learn from PE’s relentless focus on value creation. While they face pressures from quarterly earnings reports and activist investors, their governance structures often slow down decision-making—a sharp contrast to the hands-on, results-driven nature of PE ownership.

What It Takes to Lead in Both Worlds

Given these differences, how can companies evaluate CEOs who transition between private and public environments? 

According to Spencer Stuart, the most successful cross-sector leaders exhibit operational agility – they have the ability to navigate both high-speed execution in PE and long-term strategic planning in public companies. Investor acumen is also crucial; understanding how to engage with PE sponsors or public shareholders effectively can make or break a leader. 

“Great leaders can succeed in both environments if they recognize what drives success in each model. It is not about replicating a playbook – it is, rather, more about adapting to a different pace and structure.”

Resilience under scrutiny is another key attribute. Whether answering to a public board or a PE firm, leaders must manage expectations and execute decisively.

Related: Why Talent Holds the Key to M&A Success – ExitUp

Eroding Boundaries

“Great leaders can succeed in both environments if they recognize what drives success in each model,” noted Mr. Berta. “It is not about replicating a playbook – it is, rather, more about adapting to a different pace and structure.”

As more companies cross-pollinate leadership talent between PE and public firms, the traditional distinctions between the two models are eroding. PE firms are increasingly tapping former public company executives for their industry expertise, while public firms are adopting PE-style efficiency measures to stay competitive.

“We’re entering an era where the best CEOs are defined not by where they came from, but by how well they can adapt,” said Mr. Berta. “The companies that recognize this shift will be the ones that thrive in a changing market.”