Internal promotions surge 30 pc as firms reshape leadership teams: Report

Mumbai, Sep 1 (PTI) Internal promotions rose sharply by 30 per cent in 2025-26 from 12 per cent a year ago, as organisations continue building and reshaping their executive teams, according to a report released on Tuesday.

External hiring continued to account for the majority of leadership appointments between April 2025 and March 2026. However, its share moderated from 81 per cent in FY25 to 65 per cent in 2025-26, according to the CXO Moves Report 2025-26 by Sapphire Human Capital.

The Report is based on inputs from 4,361 CXO and senior leadership movements tracked by Sapphire Human Capital between April 2025 and March 2026.

The decline in external hiring was accompanied by a significant increase in internal leadership movements, which rose to

30 per cent in FY26 from 12 per cent the previous year, reaching the highest level during the period under review.

This suggests the moderation in external hiring was not a reflection of reduced demand for CXO talent, but a shift in the source of leadership appointments, with organisations increasingly leveraging existing leadership pipelines, the report said.

While companies are strengthening internal succession pipelines, they are also continuing to explore externally to increase optionality, it added.

The report further revealed that leadership movements from MNCs (multinational companies) to Indian-origin firms increased from 30 per cent in 2023-24 to 40 per cent in FY25 and 59 per cent in FY26.

This indicates that Indian-origin companies are increasingly successful in attracting experienced leaders from multinational organisations.

Indian companies are expanding globally and creating senior leadership roles that increasingly rival or exceed those offered by multinational corporations, reflecting the growing scale and complexity of Indian businesses, according to the report.

Consumer and Media and Entertainment recorded among the highest MNC-to-Indian-origin company movements at 17 per cent each, followed by technology at 14 per cent and Industrial and Manufacturing at 12 per cent, it added.

Overall, the data positions Indian-origin companies as increasingly competitive destinations for senior executive talent, with the MNC-to-Indian flow rising to 59 per cent in just two years.

The trend reflects a broader evolution in the Indian leadership market, where domestic enterprises are increasingly able to attract leaders with global experience by offering larger remits, broader ownership, faster growth opportunities and the ability to influence businesses comprehensively.

Meanwhile, Mumbai and NCR remained the two dominant centres for CXO movements, recording 1,200 and 1,135 movements, respectively, accounting for 2,335 movements, or around 54 per cent of the total CXO movements recorded during FY26.

This was followed by Bangalore recording 492 CXO movements, Hyderabad 129, Pune 113, Ahmedabad and Chennai 73, and Kolkata 60 movements. PTI SM BAL BAL