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key takeaways
Move quickly to stabilize leadership. Appoint an experienced interim CEO who can take control, maintain momentum and guide the organization through the transition.
Communicate clearly and consistently. Employees, investors, customers, lenders and other stakeholders need honest updates to maintain confidence and prevent damaging speculation.
Use the transition to prepare for the future. Conduct a thoughtful permanent CEO search while strengthening the company’s succession plan for the next leadership change.
What Does “Acting” Mean in a Job Title?
An acting title indicates that someone has temporarily assumed the duties of another position.
For example, an acting manager might step in while the permanent manager is:
- On parental or medical leave
- Away for an extended period
- Leaving the organization
- Being promoted or reassigned
- Replaced through an ongoing hiring process
The acting leader is frequently an existing employee who already understands the organization, its people, and its day-to-day operations. The company may ask that person to maintain continuity until the permanent employee returns or a replacement is hired.
An acting appointment does not automatically mean the person has received a permanent promotion. It also does not necessarily mean the person has all the authority, compensation, or benefits associated with the permanent position. Those details should be defined when the appointment is made.
What Does Acting CEO Mean?
An acting CEO is someone temporarily appointed to perform the chief executive officer’s responsibilities.
The acting CEO may be a senior executive, company founder, board member, or other trusted internal leader. This type of appointment often follows the sudden resignation, termination, illness, or leave of the permanent CEO.
The board may appoint an acting CEO to maintain leadership continuity while it assesses the company’s needs and searches for a permanent replacement. Depending on the appointment, the acting CEO may have substantially the same operating authority as a permanent CEO.
An acting CEO is not automatically excluded from consideration for the permanent role. Some acting CEOs become permanent appointments, while others serve only until the board completes its search. The company should communicate that distinction clearly to employees, investors, customers, and other stakeholders.
If a CEO leaves unexpectedly, the organization’s immediate priority should be to stabilize leadership and decision-making. Our guide to what to do when a CEO quits explains the critical steps boards should take following a sudden departure.
Acting Executive vs. Interim Executive: What Is the Difference?
Both acting and interim leaders provide temporary leadership, and organizations sometimes use the titles interchangeably. In practice, however, the appointments generally differ in how the leader is selected and what the company expects that person to accomplish.
An acting executive is likely an internal employee asked to preserve continuity. A RED Team interim executive is a seasoned leader brought in from outside the organization to provide leadership and deliver specific results.
| Factor | Acting executive | Interim executive |
|---|---|---|
| Basic meaning | Temporarily performs another position’s duties | Temporarily assumes leadership responsibility |
| Typical source | Often an internal employee, deputy, or board member | Often an experienced external executive |
| Primary purpose | Maintain continuity during an absence or vacancy | Maintain continuity and/or deliver defined change and keep the organization moving forward |
| Scope | May focus on existing operations | Stabilization, transformation, turnaround, or growth |
| Duration | Usually until the incumbent returns or a replacement is chosen | Commonly several months or through a defined transition |
| Permanent candidate? | Possibly; company policy varies | True interims are not interested in permanent employment. They are wired to win, then move on to the next challenge. |
| Authority | Determined by the appointment | Determined by the engagement and mandate |
These are common distinctions—not fixed definitions. Before choosing either approach, the company should focus on the leadership challenge it needs to solve.
What Is an Interim Executive?
An interim executive is an experienced leader who temporarily assumes responsibility for a company or business function.
Unlike a consultant who advises management, a true interim executive becomes part of the leadership team. The interim may direct employees, make operating decisions, manage a budget, work with the board, and take responsibility for delivering agreed-upon results.
Companies engage interim executives to:
- Fill a sudden C-suite vacancy
- Stabilize the business after an executive departure
- Lead a turnaround or restructuring
- Integrate an acquisition
- Prepare the company for a sale
- Improve financial or operational performance
- Build a leadership team
- Guide rapid growth or expansion
- Lead while the company searches for a permanent executive
- Prepare the organization for its next permanent leader
A strong interim executive does more than occupy an empty seat. The executive arrives with a defined mandate and the experience to begin making progress quickly.
For a broader explanation of the model, see our Ultimate Guide to Interim Management.
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The Complete Guide to Interim Management
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The Complete Guide to Interim Management
Everything owners, investors, and boards need to know about deploying interim executives — when to use them, how to vet them, what to pay, and how to get results fast.
Does an Acting Executive Have the Same Authority as a Permanent Executive?
An acting executive may have most or all of a permanent executive’s authority, but the title alone does not guarantee it.
Authority depends on the terms of the appointment, which should be documented at the beginning of the assignment. Leadership should also communicate those responsibilities to the team.
This is especially important for an acting CEO or another C-suite appointment. Employees and stakeholders need to know who has final decision-making authority during the transition.
Can an Acting Position Become Permanent?
Yes. An acting employee can be considered for and ultimately appointed to the permanent position.
Serving in an acting role may give the employee an opportunity to demonstrate leadership ability. It can also help the organization evaluate that person in the role before making a long-term commitment.
However, an acting appointment is not a promise of permanent employment in the position. To avoid uncertainty and resentment, employers should explain:
- Whether the acting leader is eligible for the permanent role
- Whether an external search will be conducted
- How candidates will be evaluated
- When the organization expects to make a decision
- What happens if the acting employee is not selected
How Long Does an Acting Position Last?
A short appointment might last several weeks while a manager is on leave. A senior acting appointment may continue for several months while the board or executive team conducts a permanent search.
The appointment should ideally include an expected end date or a clear ending condition, such as:
- The permanent employee returns
- A new executive begins work
- A defined project or transition is completed
- The board reviews the arrangement after a specified period
When Should a Company Appoint an Acting Leader?
An acting appointment can be the right choice when:
- The permanent leader will return after a defined absence
- The vacancy is expected to be brief
- Operations are stable
- The internal candidate has sufficient experience and authority
- The company does not need major strategic or operational change
- The appointment provides a useful leadership-development opportunity
When Is an Interim Executive the Better Choice?
An external interim executive may be the better choice when:
- A senior leader leaves unexpectedly
- The company is experiencing a crisis or turnaround
- Performance is deteriorating
- The board needs an independent perspective
- The internal team lacks relevant transition experience
- A merger, acquisition, sale, or restructuring is underway
- The organization needs an objective assessment before hiring permanently
- Important initiatives cannot wait for a lengthy executive search
- Internal candidates would face political or organizational constraints
InterimExecs can match companies with a vetted interim CEO or other C-suite leader in as little as 48 hours.
Acting, Interim, or Fractional: Which Leadership Model Fits?
Acting, interim, and fractional leaders all provide alternatives to an immediate permanent hire, but they solve different problems.
- Acting leader: Often an internal employee providing temporary coverage.
- Interim executive: Typically a full-time temporary leader responsible for continuity, change, or defined results.
- Fractional executive: A part-time executive who provides ongoing leadership to a company that does not need or cannot yet justify a full-time role.
A fractional executive may work with several companies simultaneously. An interim executive is commonly embedded more deeply in one organization for the duration of the assignment.
Read our detailed comparison of fractional vs. interim executives to determine which model best fits your company.
Choosing the Right Temporary Leader
Before appointing an acting leader or engaging an interim executive, boards and business owners should ask:
- Does the company need continuity, change, or both?
- Does an internal candidate have the necessary experience?
- What decisions must the temporary leader be authorized to make?
- What results should the leader deliver?
- How quickly must the leader begin?
- How long is the transition likely to last?
- Will internal relationships make independent action difficult?
- What should be accomplished before a permanent executive arrives?
Choose an acting appointment when a qualified internal leader can maintain continuity and address the organization’s needs. Consider an external interim executive when the company also needs independent judgment, specialized experience, rapid change, or turnaround leadership.en parachute. That’s because interims are hired as contractors to achieve fixed deliverables and goals.
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Frequently Asked Questions
“Acting” means a person has temporarily assumed the duties and authority of a position. The appointment may cover an employee’s leave, fill a vacancy during a search, or provide leadership during a transition. The person does not automatically hold the role permanently.
An external interim executive may be preferable when the company needs more than short-term coverage—for example, during a turnaround, sudden executive departure, merger, restructuring, or rapid growth initiative. The interim can provide independent judgment, relevant experience, and a defined mandate while the organization evaluates its long-term leadership needs.
An acting manager is often an internal employee temporarily assigned to maintain continuity. An interim manager may be an external, experienced leader hired to run the function and accomplish specific objectives. However, employers do not use these titles consistently, so the appointment’s authority and mandate matter more than the label alone.
An acting manager may receive most or all of the permanent manager’s authority, but that is not automatic. The organization should document the acting leader’s decision rights, reporting relationships, budget authority, compensation, and the expected duration of the appointment.
Yes. An acting employee may be considered for or appointed to the permanent position, but an acting title does not guarantee promotion. Organizations should clarify whether the acting leader is a candidate and how the permanent selection process will work.
