Latest / Executive Careers with Fexingo: VP, C-Suite, and Senior Leadership Career Strategy / How Senior Leaders Use Interim Roles as Career Strategy
Transcript
- Lucas: So I want to talk about something that has quietly become a major career accelerant for senior leaders over the last few years: taking interim roles intentionally, not because you got laid off, but as a deliberate strategic move. Luna: I think a lot of executives still hear 'interim' and think 'temp' or 'damaged goods.' But that's not the reality anymore, is it? Lucas: No, and in fact the stigma has almost completely flipped. I was looking at a study from an executive search firm — I think it was from Heidrick & Struggles — that found that about 40 percent of interim C-suite placements in 2025 led to either a permanent role or a board seat within twelve months. That's not a holding pattern; that's a proving ground. Luna: Forty percent? That's higher than I would have guessed. What's driving it? Lucas: A few things. One is that private equity firms, especially in the middle market, are increasingly using interim executives as a way to vet talent before making a long-term commitment. They bring in a seasoned CFO or COO for six months to stabilize a portfolio company, and if the results are there, that person often gets offered the permanent seat or an operating partner role across multiple portfolio companies. Lucas: But it also happens on the public company side. I talked to a former Fortune 500 CFO — let's call her Sarah — who took an interim CFO role at a publicly traded consumer goods company after her previous company was acquired. She negotiated a six-month contract with a clear scope letter and an exit clause. After four months, the board asked her to stay on permanently. She declined, but she did end up on their board and as an operating partner at the private equity firm that owned a stake. Luna: So she turned a short-term engagement into two long-term relationships. That's the kind of leverage most leaders don't think about when they're considering interim work. Lucas: Exactly. And that's the framework I want to drill into today: how to evaluate an interim opportunity not as a fallback, but as a calculated career investment. There are three things you should have before you say yes: a clear mandate, a defined timeline with off-ramps, and a way to protect your personal brand. Luna: Let's start with the mandate. What does a clear mandate look like in practice? Lucas: It means the role needs a written scope letter that specifies what success looks like, what resources you'll have, and who you report to. For example, 'We need you to improve working capital by $50 million over six months' is a mandate. 'Help us with finance' is not. The best interim leaders I know treat the scope letter like a contract — because it is one. Luna: And the timeline and off-ramps — that's about not getting stuck in a role that was supposed to be temporary but drags on because the board can't find a permanent person? Lucas: Exactly. You need a firm end date and a notice period that works both ways. If the board wants to extend, they should renegotiate terms, not just assume you'll stay. And if you want to leave early because a better opportunity comes up, you don't want to be locked in. The best interim executives negotiate a 30-day out clause for themselves. Lucas: The third piece — protecting your personal brand — is the one most people overlook. An interim role can be a great story on your resume, but only if you frame it correctly. You don't want it to look like you were just filling time. So when you accept, you should already be thinking about how you'll talk about it later: 'I was brought in to solve a specific problem, I solved it, and I moved on.' Luna: I've seen executives get this wrong. They take an interim role at a distressed company, and even if they do great work, the association with a turnaround that ultimately failed can hurt them. How do you manage that? Lucas: You have to be selective about which distress you take on. If the company has a viable path and strong backing, it's fine. But if it's a zombie with no clear exit, you're better off passing. The reputation risk is real. One healthcare CEO I know took an interim role at a regional hospital chain that was clearly heading for bankruptcy. He stabilized operations for eight months, but when the chain eventually filed, his name was in every article. He spent two years recovering from that. Luna: So the calculus is: is this interim role going to showcase my skills in a way that enhances my narrative, or is it going to tether me to a sinking ship? Lucas: That's exactly right. And the best interim leaders are ruthless about that calculus. They treat every interim engagement like a board seat interview — they do due diligence on the company, the board, the investors, and the financials before they sign. Lucas: There's also a practical financial consideration. Interim roles typically pay a premium — sometimes 1.5x to 2x what a permanent role would on an annualized basis — but there's no guarantee of continuity. So you need to have a cushion. Most seasoned interim executives I know maintain at least six months of expenses in liquid savings to cover the gaps between engagements. Luna: That's a discipline a lot of senior leaders don't have because they've been in permanent roles with steady paychecks for years. It's a different mindset. Lucas: It is. But the upside is that you gain incredible strategic optionality. You can pick and choose assignments that build your expertise in a new industry or function. You can test-drive a company before committing permanently. And you can build a network of board members, private equity partners, and fellow executives who see you deliver results under pressure. Luna: I want to go back to Sarah, the CFO you mentioned. She ended up on the board of the consumer goods company and as an operating partner at the PE firm. Was that luck, or was that by design? Lucas: By design. She told me that when she accepted the interim CFO role, she explicitly asked for a board observer seat as part of the deal. She wanted visibility into the board's dynamics. And she made it known to the private equity sponsors that she was interested in operating partner work. She planted those seeds before she even started. Lucas: That's the strategic part. You don't just take an interim role and hope good things happen. You use it as a platform to showcase your judgment, your speed, and your ability to work with a board. And you actively manage the relationships that will sustain you after the engagement ends. Luna: One thing I've noticed is that interim roles are becoming more common in functions beyond finance. I'm seeing interim chief revenue officers, interim CHROs, even interim CMOs. Is that trend real? Lucas: Very real. The pandemic and the post-pandemic volatility made boards much more comfortable with fractional leadership across the C-suite. A 2024 survey by the Interim Executives Association showed that demand for interim chief marketing officers grew 35 percent year-over-year. Companies need specialized expertise fast, and they don't want to make a permanent hiring mistake. Luna: So for a senior leader who has never considered interim work, what's the first step? Should they just start talking to recruiters? Lucas: I'd say start by getting clear on your own thesis. What problem are you uniquely good at solving? For example, 'I fix broken sales operations in mid-market tech companies' or 'I help family-owned manufacturers professionalize their finance function.' If you can articulate that in one sentence, you're ready to market yourself as an interim executive. Lucas: Then, yes, talk to recruiters who specialize in interim placements. There are firms like Business Talent Group, The Execu|Search Group, and a number of boutique shops that focus on fractional leadership. Also, network with private equity partners — that's where a lot of the opportunities live. Luna: One more question: is there a point in a career where an interim role is a bad idea? Like, if you're 58 and aiming for a permanent CEO role, does taking an interim gig signal that you're not a long-term candidate? Lucas: It can, if you're not careful. If you take too many interim roles in a row, boards might wonder why no one has wanted to keep you permanently. But one or two strategic interim engagements, especially if they're at well-regarded companies, can actually enhance your candidacy for a permanent CEO role. It shows you've been battle-tested in different environments. Luna: That's a powerful way to frame it. And I think for a lot of our listeners — senior leaders who are maybe between roles or contemplating a change — this is a genuinely useful lens. If you're thinking about your next move, and you've never considered an interim assignment, I'd say it's worth at least exploring. Lucas: I agree. And if today's conversation gave you a new way to think about your own career options, that's exactly why we do this show. These episodes are ad-free because of listeners who find them useful and decide to support the work. Luna: Yeah, it's a small thing that makes a big difference. If you got something out of this, you can help keep it going at buy me a coffee dot com slash fexingo. Lucas: Alright. So let's circle back to Sarah one more time. She's now in a position where she has three revenue streams: a board retainer, an operating partner fee, and occasional interim CFO assignments. That's a portfolio career that most executives dream of. And it all started with a six-month contract and a clear scope letter. Luna: I think that's the takeaway: treat every role, even a short-term one, as a stepping stone to something bigger. If you plan it right, an interim gig can be the best career move you never saw coming. Lucas: Exactly. Until next time.