You spend 20 years climbing the corporate ladder. Then a retiree takes the top job

Cracker Barrel’s decision to hire 69-year-old David Deno back into a leadership position after his retirement is part of a growing trend among corporations. Similar examples include Nike’s return of Elliott Hill, Verizon’s recruitment of Dan Schulman from PayPal, and Disney’s appointment of Bob Iger to their top position. According to Phil Wahba, a board member, companies prefer proven leaders during times of stress, as these individuals have already demonstrated success at the highest levels.

The data supports this preference, with 34% of CEOs appointed from the S&P 500 in the first half of 2026 having previously led a public company, up from 22% the previous year. However, this practice of recalling retired CEOs creates challenges. Each return disrupts the natural flow of promotions within the corporate hierarchy. As a CEO retires, opportunities should be created for those beneath them to advance.

But when an experienced individual is brought back, those promotions are delayed, potentially delaying multiple career advancements. This disruption can have long-term effects. Passed-over executives may leave for other companies or start their own businesses, reducing the internal talent pool. Those who remain might lose faith in the value of their career development efforts, making it harder for them to make personal sacrifices for advancement.

Additionally, this approach could lead to a less diverse leadership pool, as today's retired CEOs were largely appointed during a time when corporate leadership was less diverse. While there may be times when experienced CEOs are needed to navigate a crisis, reaching back for them could hinder future succession planning.