CEO Playbook: Lessons From Walmart & Rocket Lab
Recent interviews with outgoing Walmart CEO Doug McMillon and Rocket Lab founder Peter Beck offer a playbook for new CEOs. Both stressed the need for rapid scenario planning, transparent communication, and making tough calls in the first 100 days. McMillon’s advice to “listen to your gut” underscores the premium boards place on judgment and authentic leadership.
Boards are increasingly looking outside the company for new leadership, with external appointments rising. In 2025, 84% of newly appointed S&P 1500 CEOs were first-timers, a significant increase as boards bet on fresh perspectives to navigate transformation. This trend is most prominent in mid-cap companies and signals a reversal from a multi-year preference for prior public-company CEO experience. When evaluating candidates, boards prioritize a strong track record of delivering results and the ability to articulate a clear strategic vision for the company's future. Increasingly, directors expect CEO candidates to demonstrate how they have used AI to create value and how they will lead employees through technological disruption while maintaining engagement. The ability to make tough calls while maintaining trust is a critical differentiator. The pressure on new leaders is immense, as CEO tenure continues to shrink. The average tenure for departing S&P 1500 CEOs fell to 8.5 years in 2025 from 10.3 years in 2021. This compression puts an even greater emphasis on the first 100 days to establish credibility, set a clear direction, and deliver early wins to build momentum with investors and employees. The most common path to the top job remains the COO/President role, which accounted for 48% of S&P 1500 CEO appointments in 2025. Boards often use the COO position as a final "finishing" step for succession candidates. Promotions from Divisional CEO roles are also frequent, representing the second-largest source of new CEOs. The tech sector, in particular, is experiencing a surge in CEO turnover, which saw a 90% global increase in 2024, driven by the intense pressure to adapt to AI. This has led to a premium on internal hires who understand the company's existing AI roadmap, with 84% of new tech CEOs in 2024 coming from within. For executives transitioning from big tech, understanding the nuances of board dynamics is critical. While an outsider's perspective is often the reason for the hire, building alignment with directors and key stakeholders from day one is paramount. A well-defined plan for the initial transition of decision-making and a clear communication strategy are key components of a successful CEO playbook.
