The Five-Year CXO: Rethinking leadership for corporate India

Leadership churn is no longer an exception in corporate India. The archetype of a long-tenured CXO, groomed over decades within the same firm, is fading fast. A more dynamic reality is taking shape. Recent global studies suggest that nearly a third of CEOs are actively considering moving on within two years. In India, anecdotal evidence and market data reflect a similar drift. Whether it stems from executive ambition, performance pressures, or a search for fresh thinking at the top, the result is the same. C-suite tenures are getting shorter.

This development is not necessarily a negative. A more fluid leadership environment can foster agility, innovation and faster cultural renewal. But for these benefits to accrue, companies must be intentional about how they manage transitions and extract value from limited leadership windows. This calls for a strategic rethink, not just at the level of HR, but across boards, CEOs and promoters.

Leadership must now be viewed less as an open-ended tenure and more as a defined mission with measurable milestones. Much like a five-year public mandate, a CXO’s time in office should come with clear expectations, structured accountability and a results-driven agenda. Companies that adopt this approach will not only ensure performance but create a culture of discipline, ownership and velocity at the top.

There is growing consensus that an optimal CXO tenure lies in the five to ten year range. Less than five years is often too brief for meaningful organisational impact. Longer than ten runs the risk of stagnation, misplaced entitlement and resistance to change. Boards would do well to align incentive structures accordingly. Equity-linked compensation, such as ESOPs, should mature meaningfully around the five-year mark to encourage mid-term commitment. However, retention incentives beyond the ten-year horizon should be applied sparingly. The goal must be performance, not permanence.

Each CXO, soon after taking charge, should be expected to articulate a clear one-, five- and ten-year plan. This must go beyond vision statements. It should lay out specific targets, KPIs, resource asks and culture priorities. Reviewed early by the CEO or board, such a blueprint provides clarity on expectations and creates alignment. It also compels the incoming leader to engage deeply with the business rather than copying generic playbooks.

Today’s leadership environment is unrelenting. CXOs operate under enormous pressure — navigating regulatory complexity, responding to stakeholder activism, and managing transformation at scale. Burnout is real. Leadership timelines are compressing not just because of organisational impatience, but also because of the personal toll on leaders. Boards must recognise this reality and design roles, reviews and rewards that balance ambition with sustainability.

Technology orientation is no longer a differentiator. It is a prerequisite. As Indian companies modernise operations and customer engagement, technology-first leadership is essential. CXO appointments must reflect this shift. The time is ripe to move away from legacy mindsets and bring in professionals who understand digital as a core driver, not a support function. In parallel, leadership development should include digital fluency and data-led decision-making as core capabilities.

That said, the human element remains vital. Every CXO transition disrupts more than one person. It alters the working dynamics of entire teams. When leaders change frequently, teams can experience anxiety, disconnection and a dip in performance cohesion. This is where succession planning must be elevated from a compliance task to a business continuity priority. Embedded or tacit knowledge — the kind that is seldom captured in manuals but critical to daily decision-making — is at risk of being lost unless transition periods allow for real-time shadowing and knowledge transfer.

There must also be a deliberate internal pipeline for future CXOs. Leadership development is not merely about attending external programmes or rotating across functions. It requires sustained mentoring, targeted exposure and meaningful delegation. High performers should be identified early and coached not just to lead departments, but to eventually sit at the table with the board. In India’s context, where family-led firms, fast-growing startups and large PSUs all face different leadership constraints, this internal pipeline could be a strategic strength.

The CHRO can no longer afford to remain in a policy cocoon. To stay relevant, the role must be deeply business-immersed and actively engaged with strategy and execution. With shorter tenures and more external hires, the C-suite often lacks shared context or team chemistry. The CHRO must become an integrator, a coach and a quiet influencer who builds trust, addresses friction early and helps leaders align with the company’s direction. Culture and cohesion are not side responsibilities but central to business performance. A CHRO who understands the business and earns the trust of the board becomes essential to long-term continuity.

The board too must evolve. In a context of higher executive turnover, it may fall on board members to provide strategic continuity. This is particularly important in India where promoter influence remains strong and boards are often relied upon to serve as a steadying force. Beyond oversight and risk management, boards should actively engage in talent succession, leadership calibration and transition design. They must also ensure that leadership outcomes are tracked using both qualitative feedback and smart use of data — bringing in AI tools to support performance reviews, pulse checks and long-term capability tracking.

What we are witnessing is not a crisis but an evolution. Companies that treat leadership tenures as limited-time mandates, not indefinite positions, will be better prepared to extract results from today’s volatile talent environment. Those that fail to do so will find themselves constantly reacting to churn, rather than shaping the leadership needed for long-term success. In the larger picture, India’s economic ascent hinges on more than capital or technology. It will depend, increasingly, on the quality, capacity and continuity of its leadership engine.

(Views are personal; Dr. Srinath Sridharan {@ssmumbai} is Corporate Advisor & Independent Director on Corporate Boards; Preetika Mehrotra {@pretikamehrotra} is Business Transformation Leader & Founder of Manageurhr.com)