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The corner office still favors insiders

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Internal promotions remain the dominant path to the top of America’s largest companies. As of June 30, 2025, nearly 60% of S&P 500 C-suite leaders were appointed from inside their own organizations, reinforcing the enduring value of leadership development and disciplined succession planning.

That internal bias is even stronger at the very top, according to a Spencer Stuart report. Seventy-six percent of CEOs and 80% of chief operating officers (often a stepping stone to the corner office) were promoted from within their companies, making these roles the most likely to be filled by insiders.

Company scale plays a meaningful role in these outcomes. Larger organizations, particularly those with multiple business units, tend to generate deeper internal talent benches. More functional leadership roles allow high-potential executives to be developed, tested, and rotated across the enterprise, increasing the odds that boards can look inward when critical roles open.

External hiring still remains a vital lever, especially when companies need to strengthen capabilities in highly specialized areas such as technology, but it is typically used selectively rather than as the default.

Industry dynamics also shape internal promotion rates. In the industrial and consumer sectors, 61% and 62% of C-suite leaders, respectively, were internal appointments. Healthcare and technology trail with 56 percent—the lowest share of insiders among major sectors. Even when companies recruit externally, expectations differ by role. For CEOs and COOs, industry experience remains a strong prerequisite, with fewer than 20% of external hires coming from outside the company’s sector.

Taken together, the data suggest that building a long runway inside an organization, gaining breadth across functions and business units, and developing a track record of industry expertise continue to outweigh external visibility alone when boards make their most consequential decision for the top job.

Check out the 2026 most powerful rising executives in the Fortune 500

Next to Lead will be off for the holidays and back in your inbox on Jan. 5.

Ruth Umoh
ruth.umoh@fortune.com

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Leadership lesson

Mattel’s CEO on correctly pricing toys this holiday season: “The strategy is to have a pricing architecture that is broad enough and flexible enough to cater to different consumers. It’s more akin to the fashion industry than packaged goods… There are certain things that are hot or not, and you need to figure it out.”

News to know

Teenagers are already launching AI startups, using vibe-coding tools and social media to build businesses years before many can even drive. WSJ

Despite fears that AI is replacing finance jobs, experts say recent Wall Street layoffs reflect cyclical cuts and efficiency drives more than an imminent AI takeover. Fortune

CBS News pulled a “60 Minutes” segment on deported Venezuelan men, fueling claims the decision was politically motivated. NYT

Leaked files show Binance let suspicious accounts operate after its 2023 U.S. plea deal, despite terror links and failed ID checks. FT

The 46-year-old CEO of Compass is waging an aggressive campaign against Zillow to reclaim control of home listings and reshape how power and data flow in real estate. BI

A former Elon Musk rival and robotics expert is the latest Silicon Valley transplant to join GM’s leadership ranks. WSJ

Shield AI’s CEO says the $5.6 billion defense-tech startup has reached an inflection point as it looks to scale its AI software beyond its own drones and overcome fallout from a high-profile accident. Fortune

Waymo resumed its robotaxi service in the San Francisco Bay Area after pausing operations during widespread blackouts that disrupted vehicle behavior. CNBC

Join us at the Fortune Workplace Innovation Summit May 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.



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Instacart ends a program that tested how much shoppers would pay

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Instacart said Monday that it’s ending a program where some customers saw different prices for the same product ordered at the same time from the same store when using the delivery company’s service.

The program was meant to help grocers and other retailers learn more about what kinds of prices customers would pay for items, similar to how stores offer different prices for the same products at different locations. But it raised alarms after a report from Consumer Reports and two progressive advocacy groups, Groundwork Collaborative and More Perfect Union, said Instacart offered nearly three out of every four grocery items to shoppers at multiple prices in an experiment.

“At a time when families are working exceptionally hard to stretch every grocery dollar, those tests raised concerns, leaving some people questioning the prices they see on Instacart,” the company said in a Monday blog post. “That’s not okay – especially for a company built on trust, transparency, and affordability.”

Retailers will continue to set their own prices on the delivery website and they may still offer different prices at different brick-and-mortar locations, Instacart said, but “from now on, Instacart will not support any item price testing services.”

Instacart said these services were neither “dynamic pricing,” a system where the price for something can go up when demand is high, nor “surveillance pricing,” where prices can be set based on a user’s income, shopping history or other personal information. Instead, the company said it was offered to customers at random.

Some customers would simply see a slightly higher price for an item, while others would see a slightly lower price. The experiment by Consumer Reports and the two progressive advocacy groups, for example, found that Instacart customers saw one of five different prices for the same dozen of Lucerne eggs from a Safeway store in Washington, D.C.: $3.99, $4.28, $4.59, $4.69, or $4.79.

Instacart had been offering the price-testing service to retailers since 2023. The company declined to say how many customers may have been affected, but it will end the service, effective immediately.

Last week, in a separate case, Instacart agreed to pay $60 million in customer refunds to settle federal allegations of deceptive practices. The Federal Trade Commission had accused Instacart of falsely advertising free deliveries and not clearly disclosing service fees, which add as much as 15% to an order and must be paid for customers.

Instacart denied FTC allegations of wrongdoing and said it reached a settlement in order to move forward and focus on its business.

“Trust is earned through clarity and consistency,” Instacart said in its blog post. “Customers should never have to second-guess the prices they’re seeing.”



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On a frigid day after Mass at St. Ann’s Catholic Church in rural Nebraska, worshippers shuffled into the basement and sat on folding chairs, their faces barely masking the fear gripping their town.

A pall hung over the room just as it hung over the holiday season in Lexington, Nebraska.

“Suddenly they tell us that there’s no more work. Your world closes in on you,” said Alejandra Gutierrez.

She and the others work at Tyson Foods’ beef plant and are among the 3,200 people who will lose their jobs when Lexington’s biggest employer closes the plant next month after more than two decades of operation.

Hundreds of families may be forced to pack up and leave the town of 11,000, heading east to Omaha or Iowa, or south to the meatpacking towns of Kansas or beyond, causing spinoff layoffs in Lexington’s restaurants, barbershops, grocers, convenience stores and taco trucks.

“Losing 3,000 jobs in a city of 10,000 to 12,000 people is as big a closing event as we’ve seen virtually for decades,” said Michael Hicks, director of the Center for Business and Economic Research at Indiana’s Ball State University. It will be “close to the poster child for hard times.”

All told, the job losses are expected to reach 7,000, largely in Lexington and the surrounding counties, according to estimates from University of Nebraska, Lincoln, shared with The Associated Press. Tyson employees alone will lose an estimated $241 million in pay and benefits annually.

Tyson says it’s closing the plant to “right-size” its beef business after a historically low cattle herd in the U.S. and the company’s expected loss of $600 million on beef production next fiscal year.

The plant’s closure threatens to unravel a Great Plains town where the American Dream was still attainable, where immigrants who didn’t speak English and never graduated high school bought homes, raised children in a safe community and sent them to college.

Now, those symbols of economic progress — mortgages and car payments, property taxes and tuition costs — are bills that thousands of Tyson workers won’t have an income to pay.

At St. Ann’s church, Gutierrez sat between her daughters and recalled being told of the plant closure just before Thanksgiving while she visited a college campus with her high school senior, Kimberly.

“At that moment, my daughter said she no longer wanted to study,” Gutierrez said. “Because where would we get the money to pay for college?”

A tear slipped down Kimberly’s cheek as she looked at her mother and then down at her hands.

‘Tyson was our motherland’

If you threw a dart at a map of the United States, Lexington — called “Lex” by locals — would be just about bullseye.

It’s easy to miss driving down Interstate 80, half hidden by barren hackberry trees, corn fields and pastures of Black Angus cattle, but a driver can spy the plant’s hulking industrial buildings pumping steam.

The plant opened in 1990 and was bought by Tyson 11 years later, attracting thousands of workers and nearly doubling the town’s population within a decade.

Many came from Los Angeles, then stricken by recession, including Lizeth Yanes, who initially hated what she called “a little ghost town.”

But soon Lexington flourished, with suburbs sprouting among bur oak and American elm trees. The downtown, a strip of cobblestone streets and brick buildings, has a Somali grocer that abuts a Hispanic bakery; locals attend over a dozen churches and several city recreation centers.

To this day, the plant creates the town’s rhythm as workers roll on and off the daily A, B and C shifts and fill restaurants, school pickup lines and the one-screen movie theater showing “Polar Express.”

“It took a long time for me to actually enjoy this little place,” said Yanes. “Now that I enjoy it, now I have to leave.”

The atmosphere inside the Tyson plant, where workers process as many as 5,000 head of cattle a day, laboring on slaughter floors, cleaning crews or trimming cuts of meat, feels “like a funeral,” she said.

“Tyson was our motherland,” said plant worker Arab Adan. The Kenyan immigrant sat in his car with his two energetic sons, who asked him a question he has no answer to: “Which state are we gonna go, daddy?”

The only thing Adan is set on is that his kids finish the school year in Lexington, where school officials say nearly half of students have a parent working for Tyson.

The school district, where at least 20 languages and dialects are spoken, has higher high school graduation and college attendance rates than the state and national average, and one of Nebraska’s biggest marching bands. Residents are proud of the diversity and the tightknit community, where young people return to raise families.

During Mass at St. Ann’s, parishioners gave the cash in their pockets to a fund for families in financial need, despite knowing they’ll be out of work next month. Afterward, Francisco Antonio ran through his future employment options with a sad smile.

After the plant closes on Jan. 20, the 52-year-old father of four said he’ll stay a few months in Lexington and look for work, though “now there’s no future.” He took off his glasses, paused, apologized and tried to explain his emotions.

“It’s home mostly, not the job,” he said, replacing his glasses with an embarrassed smile.

“We need another opportunity, job, here in Lex,” he said. “Otherwise Lex is gonna disappear.”

‘Tyson owes this community’

The domino effect could go something like this: If 1,000 families skip town, said economist Hicks — who wouldn’t be surprised if it were double that — seats would be left empty in schools, leading to teacher layoffs; there would be far fewer customers in restaurants, shops and other businesses.

Most of the customers at Los Jalapenos, a Mexican restaurant down the street from the plant, are Tyson workers. They fill booths after work and are greeted by owner Armando Martinez’s mustachioed grin and bellow of “Hola, amigo!”

Martinez’s grandson once told his grandfather that when he grows up he wants to work at Tyson. The child’s fifth-grade sister recently gathered with classmates to talk about the changes happening with their parents. Some were headed to California, others to Kansas. All were in tears.

If he can’t keep up with bills, the restaurant will close, but “there’s just nowhere we can go,” said Martinez, who undergoes dialysis for diabetes, has an amputated foot and prays for a miracle: that Tyson will change its mind.

He knows it’s unlikely. Asked by The Associated Press for comment about plans for the site, Tyson said in a statement that it “is currently assessing how we can repurpose the facility within our own production network.” It did not provide details, or say whether it plans to offer support to the community through the plant closure.

Many, including City Manager Joe Pepplitsch, are hoping Tyson puts the plant up for sale and a new company comes in bringing jobs. That isn’t a quick fix, requiring time, negotiations, renovations and no guarantee of comparable jobs.

“Tyson owes this community a debt. I think they have a responsibility here to help ease some of the impact,” he said, noting Tyson doesn’t pay city taxes due to a deal negotiated decades ago.

‘It’s not easy, at our age, to go back and start over’

Near the plant, at the Dawson County Fairgrounds, Tyson workers recently filled a long hall as state agencies — responding with the urgency of a natural disaster — offered information on retraining, writing a resume, filing for unemployment and avoiding scammers when selling homes.

Attendees’ faces were subdued, like listening to a doctor’s prognosis. “Your financial health is going to change,” they were told. “Don’t ignore the bank, they will not go away.”

Many of the older workers don’t speak English, haven’t graduated high school and aren’t computer savvy. The last application some filled out was decades ago.

“We know only working in meat for Tyson, we don’t have any other experience,” said Adan, the Kenyan immigrant.

Back at St. Ann’s, workers echoed that concern.

“They only want young people now,” said Juventino Castro, who’s worked at Tyson for a quarter-century. “I don’t know what’s going to happen in the time I have left.”

Lupe Ceja said she’s saved a little money, but it won’t last long. Luz Alvidrez has a cleaning gig that will sustain her for awhile. Others might return to Mexico for a time. Nobody has a clear plan.

“It won’t be easy,” said Fernando Sanchez, a Tyson worker for 35 years who sat with his wife. “We started here from scratch and it’s time to start from scratch again.”

Tears rolled down his wife’s cheeks and he squeezed her hand.



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Former U.S. Secret Service agent says bringing your authentic self to work stifles teamwork

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Especially as you grow tenure at an organization, it feels much easier and comfortable to bring your authentic self to work. But former Secret Service agent Evy Poumpouras says that’s bad for business.

“Don’t bring your authentic self to work. I don’t want your authentic self to work. I want your professional self. I want your respectful self,” she told the Diary of a CEO podcast. “I want your empathetic self. I want your competent self. You can bring your authentic self to a Thanksgiving meal with your family if you’d like to.” 

Poumpouras, a Queens, N.Y., native, was a U.S. Secret Service special agent, polygraph examiner, and interrogator who served from 2000 to 2012, protecting U.S. Presidents Bill Clinton, George W. Bush, Barack Obama, and George H.W. Bush. She’s now a law enforcement and national security analyst, the bestselling author of Becoming Bulletproof, and an adjunct professor at the City University of New York. 

“Could you imagine if I brought my authentic New York self to every interrogation I did?” she asked, recounting an interrogation from years ago in which she had to interview a 16-year-old boy who had allegedly assaulted a 3-year-old little girl.  

“What would my authentic self say? ‘What are you thinking? How could you? It’s a 3-year old.’ No, I brought my professional self,” she said. 

What mattered more in that moment was getting a confession, she said, so she could find out what happened so the little girl wouldn’t be victimized again. “‘Okay, tell me what happened. Tell me more,’” she recalled saying. “Non-judgment. Poker face. You know why? Because what I think, my authentic self, is irrelevant.”

Poumpouras also argues bringing your authentic self to work puts the spotlight on one individual instead of prioritizing teamwork.

“Don’t come in and be phony. Nobody wants a phony. But [the] authentic self has become me, me, me, me, me. Everybody, check me out,” she said. “I was irrelevant. When you show up to work, wherever you work, [ask] what are you bringing to bring value to the whole team, because your authentic self could be, ‘I’m bringing my problems, I’m bringing my opinions. I’m bringing my judgments.’” 

“Honestly, nobody cares,” she added. 

What experts say about authenticity at work

In a recent Science of Personality podcast episode, Ryne Sherman, chief science officer at Hogan Assessment Systems, also said authenticity at the workplace has its drawbacks.

“Bringing your authentic self to work could get you into trouble,” he said. It can cause professionalism problems, interpersonal conflict, and hinder career development, he added, giving the example of responding angrily by screaming, stomping, or sending a harshly worded email. While that behavior might feel authentic at the moment, it’s clearly unprofessional.

“When we resist doing those things, we are being inauthentic,” Sherman said. “We’re not responding in a way that is consistent with our true feelings.” But that’s a good thing, he added.

Other studies, however, show authenticity in the workplace can have its merits. Research by Cynthia S. Wang and other co-researchers at Northwestern University’s Kellogg School of Management, published in March, said authenticity at work can improve well-being, colleague relationships, and organizational commitment.

Wang found, though, that this can be particularly difficult for marginalized and minority groups at work. 

“What we’re talking about is actual authenticity—the ability to express yourself—which is slightly different from the idea of inclusion,” Wang said. “You can include somebody in a meeting, for example, but they still may not feel comfortable with being authentic and speaking up.”

Still, Poumpouras argues authenticity in the workplace inhibits high performance.

“You get sloppiness. Everybody’s doing their own thing,” she said. “That’s not a team.

“If you’re team-oriented, you leave your authentic self here, and you bring your genuine self, who genuinely cares about the mission, who genuinely cares to do a good job, who genuinely knows that it’s not about you, it’s about the collective team,” she added.

A version of this story was published on Fortune.com on September 26, 2025.

More on authenticity at work:

Join us at the Fortune Workplace Innovation Summit May 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.



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