Hiring a new C-suite executive is a high-stakes endeavor. In fact, roughly half of outside C-level hires fail within 18 months, often costing about ten times the leader’s salary in turnover and lost productivity. The good news? Many of these failures are avoidable if you know what to watch out for. Here are three critical pitfalls to steer clear of—and how to fix them.
Skipping a Deep Dive on Personality and Mindset
It’s tempting to vet a CEO mainly on résumé and pedigree, but surface‐level interviews miss how a leader thinks and behaves. Without rigorous assessment, companies miss leadership skills and style, teamwork ability, and communication skills that predict success. In other words, you might hire a star on paper who clashes with your culture.
How to Fix It
Use structured assessments.
Add executive psychometric or leadership tests to the process. These tools flag things like adaptability, decision-style, and values alignment that a CV can’t show.
Do realistic interviews.
Go beyond scripted Q&As. For example, a live case or role-play puts a candidate on their toes. This approach helps recruiters get to the real person, not the polished, rehearsed version. You can’t fake adaptability in a live interaction. Scenario interviews expose how someone actually thinks on their feet.
Vet references for style.
Don’t stop at verifying titles. Perform in-depth reference checks that probe leadership and teamwork. Asking former colleagues about how the executive led through change or conflict can reveal the fit (or red flags) that a resume hides.
Misaligned Stakeholders and Expectations
One big mistake companies make when hiring C-suite execs is jumping into the search without getting everyone on the same page first. If the board, CEO, and investors all have different ideas about what the ideal candidate should bring to the table, things can get messy fast. You end up with mixed messages, endless debates, and, worst of all, a leader who doesn’t quite fit what anyone envisioned. Taking the time upfront to align everyone’s priorities makes the whole process a lot smoother.
How to Fix It
Ready to Hire? Huddle Up! / Hiring a Leader? Don’t Skip the Huddle!
Before you start interviewing, get everyone on the same page about what you’re looking for in your new leader. Bring key stakeholders together to agree on the candidate’s goals, must-have experience, and cultural fit—and put it all in writing. Skipping this step can lead to mixed messages and conflicting opinions during the hiring process. Aligning upfront makes sure everyone’s evaluating candidates with the same priorities in mind.
No Surprises—Set Real Expectations!
Discuss and reconcile expectations up front. Many C-level hire failures stem from “unrealistic expectations” or vague job definitions. To avoid this, clarify compensation range, authority level, and the biggest challenges the new leader will face. Transparent, early communication on these points prevents shock later – no one likes surprises about pay or scope after they’ve taken the job.
Ignoring Leadership Debt from Previous Roles
Leadership debt refers to the organizational issues or cultural challenges left behind by an executive at their previous companies. A candidate might seem highly effective on paper, but if they consistently leave behind unresolved issues—like disengaged teams or structural inefficiencies—it’s a red flag for future problems at your organization.
How to Fix It
Check the Aftermath Before You Hire!
During reference checks, specifically inquire about the state of the executive’s former teams after their departure. Was there continuity, or did the team struggle without them? High leadership debt often manifests as dependency or unresolved morale issues.
Did Their Success Stick Around?
Go beyond high-level achievements and delve into how their initiatives sustained themselves post-departure. Did they create resilient systems, or did performance dip once they moved on? Sustainable leadership leaves a positive, enduring impact.
Ask Those Who Took Over!
Connect with the people who took over the executive’s responsibilities. Did they inherit a well-structured, motivated team, or were they tasked with cleaning up dysfunction? This insight reveals whether the candidate builds lasting value or leaves behind fragmented systems.
