Spencer Stuart Finds That C-Suites Are Getting Deeper — Not Broader

As companies confront more complex operating environments, the composition of the C-suite is quietly changing. Functional leaders are being asked to operate as enterprise strategists, not siloed experts, while CEOs increasingly rely on internal pipelines to build cohesive leadership teams. Leo Cummings, an associate at Hunt Scanlon Ventures, unpacks new findings on how S&P 500 leadership teams are evolving – and what it means for succession, search, and executive readiness.

The S&P 500 C-Suite Snapshot 2025: Profiles in Functional Leadership, published by Spencer Stuart, examines how senior functional roles have shifted as business challenges have become more interconnected. 

Based on an analysis of the nine most common functional C-suite roles, the report highlights a clear trend: alignment and collaboration across the CEO’s team now matter as much as individual excellence.

One of the most striking findings is how unevenly C-suite roles are distributed. While the index includes more than 500 CEOs, it has just 284 chief operating officers, reflecting how fluid and situational the COO role has become. 

By contrast, CFOs and chief legal officers remain nearly universal, underscoring their centrality in governance, capital allocation, and risk management.

At the same time, leadership teams are now being built with a longer view in mind. Nearly 60 percent of functional leaders in the S&P 500 were promoted internally, reinforcing the growing importance of succession planning and leadership development as boards look to build continuity rather than import change wholesale.

Internal Pipelines Carry More Weight

According to Spencer Stuart, 59% of S&P 500 C-suite functional leaders were internal appointments, with CEOs and COOs most likely to be promoted from within. Roughly 76 percent of CEOs and 80 percent of COOs came up through their organizations, signaling a preference for leaders who already understand company culture, complexity, and stakeholder dynamics.

“This data reinforces how critical internal pipelines have become at the top of the house,” said Leo Cummings, an associate at Hunt Scanlon Ventures. “Boards are prioritizing continuity and institutional knowledge, especially in roles where alignment with the CEO is essential.”

That said, companies still selectively look outside when they need to level up specific capabilities. CIOs, chief communications officers, and chief legal officers are more often external hires, particularly when companies need specialized expertise or fresh perspective in rapidly changing areas such as technology and regulation.

Tenure Reveals Which Roles are Most Stable

Average tenure across S&P 500 C-suite roles now stands at 5.2 years, but that number masks sharp differences by role. CEOs have the longest tenure at 7.6 years, followed by chief legal officers at 6.1 years. COOs, by contrast, average just 3.3 years in the role, reflecting how often the position serves as a developmental steppingstone rather than a permanent seat.

“Shorter tenure in certain roles doesn’t signal instability — it reflects how companies are using the C-suite more dynamically.”

“Shorter tenure in certain roles doesn’t signal instability — it reflects how companies are using the C-suite more dynamically,” said Mr. Cummings. “The COO role in particular has become a proving ground for future CEOs.”

Fifteen percent of functional leaders stepped into their roles within the past year, with nearly one-quarter of COOs newly appointed. This churn highlights how frequently boards recalibrate leadership structures as strategy evolves.

Industry Experience Still Matters — But Not Everywhere

Sector expertise remains most important for CEOs and COOs, where fewer than 20 percent of external hires come from outside the company’s industry. In contrast, more than half of externally hired CIOs and chief communications officers were recruited from different industries, often from the technology sector, where transferable skills are in high demand.

“This suggests boards are becoming more nuanced buyers of leadership,” said Mr. Cummings. “They want deep industry fluency in roles tied directly to the operating model, but they’re more flexible in functions where innovation and cross-pollination matter.”

“Boards are becoming more nuanced buyers of leadership.”

Consumer companies stand out for their willingness to recruit leaders from outside their sector, particularly for CFO and general counsel roles, reflecting both competitive pressure and the need for fresh thinking.

Diversity Progress Is Uneven Across the C-Suite

Overall, 43 percent of S&P 500 C-suite roles are held by women and leaders from historically underrepresented racial and ethnic groups. Representation varies sharply by function, however. While nearly three-quarters of CHROs and chief communications officers fall into these categories, fewer than one-quarter of CEOs and COOs do.

Healthcare leads all sectors in female representation at the C-suite level, while technology stands out for having the highest share of ethnically diverse CEOs. Still, the data shows that progress at the very top remains slower than in functional leadership roles.

“Diversity gains are real, but they’re concentrated in certain functions,” said Mr. Cummings. “The next challenge is translating that progress into broader representation in CEO and COO pipelines.”

What It Means for Search and Succession

Taken together, the Spencer Stuart snapshot points to a C-suite that is becoming more internally developed, more role-specific, and more intentional. Functional leaders are expected to think enterprise-wide, collaborate closely, and step into roles that may be temporary, transitional, or strategically fluid.

For executive search firms and boards alike, the implications are clear. Leadership assessment must focus not just on functional excellence, but on adaptability, alignment, and readiness to operate in a more integrated C-suite. 

As companies continue to evolve their top teams, the leaders who succeed will be those prepared to grow beyond their function and into the enterprise.