Internal Promotions Signal Stability in CEO Transitions at Procter & Gamble and Novo Nordisk

When a CEO steps down, organizations are often left exposed to operational disruptions, heightened stakeholder anxiety, and a volatile market response — especially when leadership transitions are unplanned. Research shows that organizations without a formal succession plan can forfeit an average of $1.8 billion in shareholder value,¹ contributing to nearly $1 trillion in annual market losses across the S&P 1500 due to poorly managed transitions.²

However, when organizations invest in proactive, structured CEO succession planning, the results are clear: stability, continuity, and investor confidence.

Examples of Internal CEO Promotions That Strengthened Performance

Two recent transitions — at Procter & Gamble (P&G) and Novo Nordisk — offer timely examples of how promoting internal leaders can safeguard organizational performance and reinforce stakeholder trust.

In this post, we’ll explore how P&G and Novo Nordisk handled their CEO transitions, highlight the succession planning strategies they applied, and share best practices from SIGMA’s expert consultants.

Procter & Gamble: A Seamless Handover Anchored in Internal Talent

P&G’s announcement that Shailesh Jejurikar will succeed Jon Moeller as CEO in January 2026 demonstrates the company’s ongoing commitment to internal talent development and strategic leadership continuity. Jejurikar, a Mumbai-born executive, joined P&G in 1989 and has held senior roles across multiple business units and global regions.³ In 2019, he became CEO of the company’s largest sector, Fabric & Home Care, and was promoted to Chief Operating Officer in 2021 — the same path Moeller took before assuming the CEO role.⁴

Jejurikar’s rise reflects P&G’s long-standing leadership development practices and its reputation for cultivating global talent over time.⁵ His promotion continues the company’s trend of structured internal successions and supports stability amid market pressures. While P&G lowered its annual earnings guidance earlier this year and faces a mixed market environment, the board’s confidence in Jejurikar — and his proven performance across both developed and emerging markets — reinforces the company’s long-term focus and succession planning discipline. Following the CEO leadership transition announcement and better-than-expected quarterly results, P&G shares experienced a modest gain of approximately 2%, highlighting investor confidence in the company’s internal succession and continuity of strategy amid economic uncertainty.

Notably, Jejurikar will become the first Indian-born CEO of P&G, joining a growing cohort of Indian leaders at the helm of global consumer brands. With India among P&G’s top 10 markets, this appointment highlights the strategic importance of emerging market talent pipelines in global succession planning.⁶

Novo Nordisk: Internal Promotion Amid Market Pressure

At the same time, Danish pharmaceutical giant Novo Nordisk named insider Maziar (Mike) Doustdar as its next CEO, following a sudden leadership shakeup. Doustdar, who joined Novo in 1992, brings more than 30 years of leadership experience in the pharmaceutical industry and currently leads all commercial operations outside the United States.⁷ His appointment follows a challenging period for the company, marked by a sharp drop in share price and revised earnings guidance — largely due to intensified competition in the obesity and diabetes treatment markets.⁸ Although the leadership transition comes amid market pressures, analysis suggests Novo followed a governance-driven, continuity-focused approach, prioritizing cultural fit and institutional knowledge over external disruption.⁹

While some investors had hoped for an external candidate, Novo’s board emphasized the value of Doustdar’s internal experience and proven track record in global pharmaceutical operations. “He can respond and take actions quicker than anyone could do coming from the outside,” said Board Chair Helge Lund.¹⁰

Even though the market’s initial reaction was mixed,¹¹ Novo’s commitment to an experienced internal successor underlines a strategic decision to prioritize cultural continuity, institutional knowledge, and speed of execution — all cornerstones of effective succession planning.

Why Internal Succession is a Best-Practice Strategy

Despite their differences, P&G and Novo Nordisk share one crucial feature in their CEO transitions: a deliberate preference for promoting from within. This internal promotion strategy sends a reassuring signal to employees and investors alike — emphasizing long-term vision, leadership stability, and a deep bench of high-potential, ready-now talent.

At SIGMA, we advocate for this proactive, planned approach to talent management and succession planning. Internal promotions are not only faster and more cost-effective than executive searches, but they also preserve organizational culture and allow for meaningful leadership development over time. Our succession planning framework helps organizations identify high-potential leaders early, prepare them with targeted development, and execute structured, low-risk transitions when the time comes.

Seamless CEO and Executive Succession Planning with SIGMA

Whether you’re planning for a routine leadership handoff or navigating a high-stakes executive transition, SIGMA’s expert succession planning consultants are here to help. Our Succession Planning Transition service is designed to guide your organization through seamless CEO and executive handovers — preserving critical industry/institutional knowledge, building stakeholder confidence, and minimizing risk.

For those who need to move quickly in their executive succession strategy, our Succession Planning Sprint helps your team build a comprehensive succession plan in only 30 days. All it takes is a single four-hour strategy session with your leadership team. Whether you’re a small business or a large enterprise, our approach to company succession planning ensures you’re prepared for the future. Download the Succession Planning Sprint program summary to learn more.

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3. Miller, N. G. (2025). Procter & Gamble names Jejurikar as CEO; Operating chief Shailesh Jejurikar will take over from Jon Moeller, who will become executive chairman. Wall Street Journal. ↩︎
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