As corporate challenges continue to mount — from the rapid adoption of AI technologies to the complexities of managing hybrid workforces — a growing body of research suggests that the most effective CEOs today are those who bring more than just narrow expertise. Instead, those who have broad, cross-functional experience appear to be outperforming their peers and are better positioned for long-term success. This evolving perspective challenges the traditional notion that deep domain expertise is the key to executive success. Instead, versatility and a wide-ranging understanding of different aspects of business seem to offer a significant advantage in today’s volatile market environment.
A recent academic study, The Breadth Premium: Measuring the Firm-level Impact of CEO Career Breadth, analyzed data from approximately 650 U.S. firms, which together represent about 85% of U.S. market capitalization. The study constructed a “Breadth Index” to measure how much a CEO’s background spans across different domains, such as functions, industries, and roles. The findings were striking. Firms led by executives who scored high on the “breadth index” outperformed their industry peers by an average of 9.8 percentage points over a three-year window. This pattern held true across firms of various sizes, industries, and CEO age groups, emphasizing the consistent impact of broad experience on firm performance.
The study also found that each one-point increase on the five-point “breadth range index” corresponded to a 1.8-point rise in abnormal returns, which was statistically significant (with a p-value of less than 0.03). This effect demonstrated that the broader the background of the CEO, the better the firm performed — a trend that appears to be universal across different types of companies and leadership profiles.
In a business world characterized by constant disruption, complexity, and uncertainty, CEOs who possess a wide range of experiences seem to be better equipped to navigate the challenges that arise. In particular, CEOs with experience in various operational, financial, strategic, and cross-industry domains are more likely to steer their organizations successfully through these turbulent times. The “breadth premium” highlights how executives who can think integratively, adapt rapidly to shifting circumstances, and understand the nuances of different business functions are better positioned to drive superior firm performance.
The key takeaway here is that versatility is becoming a strategic asset in today’s business environment. In the face of unpredictable markets, regulatory uncertainty, and the fast pace of technological change — particularly in areas like artificial intelligence — CEOs with diverse skill sets are more adept at leading organizations through significant transformations. The ability to integrate technology, people, culture, supply chains, and environmental, social, and governance (ESG) considerations is increasingly becoming part of the CEO’s role. Executives who have had the opportunity to work across various functions and industries are often better positioned to handle this complex, multifaceted leadership challenge.
While deep domain expertise is still valuable and necessary in certain contexts, it can also be a limitation when it comes to managing organizations that face a variety of challenges. An overly specialized career path may restrict a leader’s ability to see the big picture, pivot strategies quickly, and integrate across different business functions. This is where breadth comes into play. Leaders with a wide range of experiences can approach problems with a more holistic perspective, making them more capable of responding to external shifts, such as regulatory changes or technological advancements, and adjusting their companies’ strategies accordingly.
For those aspiring to reach the C-suite, career planning should increasingly focus on building a diverse portfolio of experiences. This may mean rotating through different divisions within a company — such as operations, finance, marketing, and general management — or even exploring different industries altogether. The benefits of cross-functional moves can far outweigh the benefits of staying on a single, specialized track. As the research indicates, having experience in different roles not only broadens one’s perspective but also provides the agility needed to lead in today’s fast-changing business world.
This shift towards prioritizing breadth over narrow specialization is also reflected in how boards and hiring committees are making decisions. As evidence mounts linking a CEO’s career breadth to firm performance, companies may increasingly look for leaders whose backgrounds reflect varied roles and experiences, rather than those with highly specialized or technical expertise. This reflects a growing recognition that modern CEOs need to be adaptable and capable of managing a wide array of organizational functions. Firms may no longer prioritize technical specialists but rather leaders who can integrate diverse functions and manage complex, cross-disciplinary challenges.
The broader context in which this trend is unfolding points to the reality that leadership is changing in profound ways. According to the KPMG 2025 CEO Outlook, many CEOs are emphasizing agility, rapid adaptation, and strategic clarity as core components of their leadership philosophy. The future of corporate leadership will depend on leaders who can quickly shift gears in response to emerging trends and disruptions. This includes navigating not only the financial and operational aspects of their organizations but also addressing challenges in technology, people management, and sustainability. The DDI Global Leadership Forecast 2025 further supports this view, noting the growing skill gaps in leadership and the need for leaders who can navigate complex, technology-driven transformations.
In light of these evolving demands, the “breadth premium” offers a valuable insight: modern CEOs must manage a variety of interconnected functions, including technology integration, people, culture, supply chains, ESG concerns, and regulatory dynamics. Those with a broad range of experiences — especially those who have worked across different industries and disciplines — are far better positioned to handle this complexity. The ability to balance the various, often conflicting demands of leadership will be one of the most critical factors in the success of future CEOs.
In conclusion, the study of CEO career breadth underscores the growing importance of versatility and adaptability in executive leadership. As companies face an increasing number of challenges — from technological advancements to global supply chain disruptions — the most successful CEOs will be those who can draw on a broad range of experiences to make informed, strategic decisions. Career paths that emphasize diversity of experience, cross-functional learning, and adaptability will likely offer the greatest long-term success in the rapidly evolving corporate world. As we look toward the future, it is clear that the “breadth premium” will be a defining characteristic of successful CEOs in 2025 and beyond.
