When we talk about ‘acting’ versus ‘interim’ roles, particularly for a CEO, there are some pretty key differences, especially in how they might be seen from the outside.
Both acting and interim signal short-term leadership and help keep the organisation steady during change. But the level of authority, expectations and how staff, funders and partners perceive them can vary widely.
For boards, this choice shapes the tone of the leadership transition, affects stakeholder confidence and sets the context for the permanent CEO who follows.
Understanding the differences between acting and interim CEO roles, as well as the opportunities and risks of each, can go a long way toward helping boards communicate how and why they make the choice between the two roles.
What is an acting CEO role?
An acting CEO is usually a current senior leader who steps up to cover a temporary gap. They often continue with some of their existing responsibilities alongside the role. A common example is a Chief Financial Officer becoming the acting CEO.
These appointments are often short, lasting a few weeks or a couple of months and sometimes without a clear end date. They are designed to keep things moving when there is an unexpected absence or a sudden change at the top.
The focus of an acting CEO is usually to maintain stability and keep daily operations running as smoothly as possible. They are rarely asked to make big strategic shifts or introduce major organisational change and their authority for long-term decisions may be more limited, with the board keeping a closer eye on direction.
For boards, appointing an acting CEO can demonstrate confidence in the leadership team already in place. It highlights the trusted internal capacity to steady the organisation through a period of change. At the same time, it may also signal that the organisation is holding the course until a permanent CEO is appointed.
Stakeholders often find reassurance in seeing a familiar leader step forward, someone they already know and trust. They may also look for clarity on the longer-term direction, particularly if the acting arrangement continues for more than a few weeks. Boards can help by being open about why this choice has been made, how long it might last and what the next steps will be. This can make the appointment feel purposeful rather than uncertain and help maintain confidence across staff, funders and partners.
We have seen acting CEO appointments work particularly well when boards explain the choice openly, emphasise the continuity they bring and acknowledge the limits of the role. This helps staff, funders and partners feel confident that the organisation is steady now, while also looking ahead.
What is an interim CEO role?
An interim CEO is often an external appointment, brought in for their specialist expertise and track record in managing transitions, navigating crises or delivering specific projects. Sometimes they step in to replace a departing CEO, and other times they provide extra capacity in a new temporary role created for a particular purpose.
These appointments are usually more structured than acting roles, lasting from three months to a year or longer. Interim CEOs are often asked to address immediate challenges, lead organisational change or implement major initiatives, whether in a turnaround, a digital transformation or a crisis recovery.
Unlike acting CEOs, interim leaders are usually expected to act as agents of change. They bring a fresh and independent perspective, and their mandate is often to make the adjustments needed to stabilise the organisation and prepare the ground for a permanent leader.
Whilst still a temporary appointment, an interim executive usually has a broader mandate and more authority to make impactful decisions and implement significant changes, as they’re specifically brought in to tackle organisational challenges.
Appointing an interim CEO signals a deliberate and strategic choice by the governing board. Stakeholders may read this as a proactive step to bring in experienced leadership at a critical point. Clear communication is important, especially with existing senior leaders who may have seen themselves as able to step into the role. Being upfront about why an interim CEO has been chosen, what they are here to achieve, and how long they are expected to stay can help reassure staff, funders and partners that the organisation is focused not only on the present but also on the future.
How stakeholders may view acting and interim CEO appointments
It’s important to consider how stakeholders may understand the difference between an acting and interim CEO, whether that’s senior leaders, staff, funders, partners, investors or the media.
The appointment of an acting CEO
Appointing an acting CEO often signals an immediate internal solution. It shows that the board recognises the leadership team’s strength and has confidence in a trusted colleague’s ability to hold the organisation steady.
Stakeholders may take comfort in the familiarity of a leader they already know. At the same time, they may seek reassurance about the longer-term plan, particularly if the acting arrangement continues for some time. Being clear about how the appointment fits into the wider recruitment process can help ease these concerns.
For the individual stepping in as acting CEO, it can be both a challenge and an opportunity. It is often seen as a vote of confidence in their leadership, and it can provide valuable experience at a senior level. Boards should support the candidate by being explicit about expectations, acknowledging the dual pressures of balancing their existing role with new responsibilities and ensuring they have the backing they need to succeed.
The appointment of an interim CEO
Choosing an interim CEO is often seen as a deliberate and strategic decision. It shows that the board has looked outside the organisation to bring in specialist expertise, whether to guide a transition, manage a complex challenge or lead a period of change.
For stakeholders, this can be a reassuring sign that the organisation is acting decisively. It demonstrates a proactive approach to leadership and a willingness to invest in the skills needed for the moment. At the same time, senior leaders within the organisation may need careful communication to understand why an external appointment has been made and how it complements their own role.
An interim CEO usually comes with a clear mandate, whether that is to stabilise operations, deliver a major project or prepare the ground for a new permanent leader. Boards can help by being transparent about these objectives, setting out what the interim is intended to achieve and how long it is expected to last. This clarity gives staff, funders, partners and investors confidence that the organisation has both short-term stability and a plan for the future.
At Nottingham College, we appointed an interim CEO after the previous CEO stepped down due to health reasons. The college was facing challenges with culture, financial health and student experience and the governors needed someone with experience of leading transformation. The interim leader helped strengthen staff engagement, curriculum planning and quality systems, leaving the organisation in a stronger position for the arrival of the permanent CEO and Principal.
Choosing the right approach to temporary CEO leadership
Whether an organisation appoints an acting CEO or an interim CEO, the decision is about more than filling a gap. Each option carries different opportunities and risks, and each will shape how the organisation is seen during a leadership transition.
What matters most is that boards make the choice with intention, communicate it clearly and support both the individual stepping in and the wider leadership team around them. When stakeholders understand the reasoning, the timescale and the plan for what comes next, they are more likely to feel confident in the organisation’s direction.
Handled well, these temporary appointments not only provide stability in the present but also lay the groundwork for long-term success under the permanent CEO who follows.
Drew Richardon-Walsh is our Director of Education Practice, keeping more than ten team members entertained, inspired and delivering exceptional work for our partners. If you are looking for inspiring leaders like Drew, please send him an email or connect with him on LinkedIn.
