Succession planning woes also contributing to declining confidence, report finds
CEO confidence in their C-suite is sliding at a time when companies face intense disruption and digital change, according to new data from Russell Reynolds Associates' latest Leadership Confidence Index (LCI).
The research, based on nearly five years of global survey waves, finds that chief executives are increasingly unsure whether their top teams are equipped for the future, particularly when it comes to transformation and succession.
Russell Reynolds describes CEO confidence in the C-suite as "one of the clearest indicators of whether strategy will translate into results."
Yet the firm's recent data show that confidence is not moving in the right direction. For CEOs specifically, the picture is mixed but still troubling.
"CEO confidence in the C-suite continues to decline, though the underlying reasons aren't as straightforward as one might think," the report reads.
Future readiness under pressure
The steepest slide has come in perceptions of "future readiness," one of four core dimensions tracked by the index, alongside core capability, strategic acumen, and purpose and values.
Russell Reynolds defines future readiness as whether the C-suite effectively embraces digital transformation, adapts to changing working expectations, reskills the workforce for the future, and embraces change.
Across the survey period, the C-suite's Future Readiness scores have dropped to 64.0 in 2025, down from the 75.1 peak in 2021, with an average fall of 2.8 points annually.
"The challenge is not a lack of strategic vision. It is a gap in execution confidence. CEOs may see where the organisation needs to go, but they're less certain their teams can mobilise fast enough to get there," the report reads.
CEOs' confidence that their C-suite will embrace digital transformation declined to 65.2 in 2025, down 0.7 points from 2024, which comes in the wake of widespread AI transformation in many workplaces.
Russell Reynolds said its research into AI demonstrates this gap – with 65% of CEOs being excited about AI's potential, but only 47% believing their organisation has forward-thinking leadership.
Succession worries mount
Meanwhile, succession planning is also a concern for many CEOs when it comes to the C-suite.
According to the findings, leaders are less convinced their top teams can both manage present complexities and plan effectively for the leadership transitions ahead.
Although the report does not single out individual succession breakdowns, the numbers suggest many CEOs doubt they have robust benches in place — either to back them up in critical roles now, or to step into top jobs in the near future.
"When leadership continuity is uncertain, strategic risk appetite contracts, long-term initiatives become harder to sustain and governance exposure increases," the report reads.
"And as leaders report increasing interest in making a career move, strengthening succession at the top is not only a talent imperative; it's a strategic stability requirement."
What can leaders do?
The LCI data reinforce a message boards and investors have been sending for several years: traditional leadership profiles may no longer be sufficient.
For many organisations, that is likely to mean accelerating efforts on two fronts.
First, transformation readiness, particularly in digital and AI, new ways of working, and workforce reskilling, is becoming a central yardstick for C-suite performance.
According to the report, CEOs should be intentional and consistent in role modelling the organisation's desired culture and behaviours to build confidence.
"By reinforcing expectations through daily decisions and actions – and inviting accountability – CEOs strengthen credibility and trust," the report reads.
"This consistency drives greater alignment and ownership within the C-suite, creating a cascading effect across the organisation."
The second front is about building a deeper "reservoir" of leadership talent, ensuring that promising executives one or two levels below the C-suite are systematically assessed, developed, and rotated through stretch assignments.
To improve succession planning, the report urged organisations to intentionally expose the C-suite and next-generation leaders to new business challenges.
"Leaders who feel that their organisations are preparing them to lead in an uncertain future, and providing novel, challenging experiences that help them learn, are four times more likely to stay at their organisation," the report reads. "CEOs that continually build up their C-suite leaders will be able to improve their teams' strategic acumen and stay competitive in an increasingly challenging talent landscape."
