Good morning. 2026 is turning out to be one of the most seismic years for CEO transitions: Greg Abel replaced Warren Buffett as CEO of Berkshire Hathaway, Josh D’Amaro replaced Bob Iger at Disney, John Furner replaced Doug McMillon at Walmart, and now John Ternus is replacing Tim Cook at Apple. We did spotlight Ternus as a potential successor back in October. And Cook is 65, an age at which many people retire. (Buffett, Iger and McMillon were 95, 75 and 59, respectively.) But Apple’s announcement comes amid a slew of other CEO transitions at Adobe, Coca-Cola, Dow, BP and elsewhere. What’s going on?
The Speed of AI: McMillon cited the urgency around AI as a major catalyst in stepping down, saying he didn’t think he couldn’t finish the transformation he started in time. James Quincey at Coca-Cola essentially said the same thing in handing the reins to COO Henrique Braun. This is a sprint, not a marathon, and requires an athlete at the top of their game. As leadership consultant Stephen Miles told me: “Every company has to run a faster 800 each year and you need someone fit for the 800 who has the longevity to see this through to the other side.”
Keep your legacy intact: Nothing destroys a CEO’s legacy like lingering too long in the job. That may be why Adobe CEO Shantanu Narayen felt compelled to announce he was stepping down after 18 years, before a successor has been found. Tim Cook will leave behind a staggering legacy at Apple, growing a company worth about $300 billion when Steve Jobs died in 2011 to one that’s worth $4 trillion today. But Apple has also lagged on AI, raising questions about whether Cook should lead from here. (It no doubt helps that Ternus is an engineer.)
Transformation is not a turnaround: For all of the tumult in the top ranks, it’s interesting to note that the reins are largely being handed to COOs who understand the company. In a turnaround, boards often go outside to find a new leader who will change the culture, the team, and pretty much whatever else it takes to get results. In a transformation, you want to accelerate change without destroying the house. For the most part, incumbent CEOs know where they want to go. They might even have strong ideas on how to get there. But they recognize the old paradigms of business, from how they organize talent to how they reach customers, is changing at a speed that requires a new leader at the helm.
Contact CEO Daily via Diane Brady at diane.brady@fortune.com
Top leadership news
Warsh’s confirmation hearing
Kevin Warsh, President Donald Trump’s pick to lead the Federal Reserve, will appear before the Senate Banking Committee this morning in his first step toward confirmation. He’s expected to face a lot of questions about how he will keep the central bank independent from the White House and justify any further interest rate cuts. Here’s what to expect.
Data centers’ energy demand skyrockets
Data centers accounted for around 50% of all electricity demand growth in the U.S. last year, according to a report from the International Energy Agency (IEA). The findings come as public opinion on data centers continues to sour, making the facilities political flashpoints amid anti-AI sentiment.
Productivity not rising with AI
A survey of 6,000 CEOs, CFOs, and fellow executives in the U.S. and other countries found that they report few results from AI in their operations, including 90% who said AI has had no impact on employment or productivity over the last three years. Yet the same executives forecast that AI will increase productivity by 1.5% over the next four years.
The markets
S&P 500 futures are up 0.23% this morning. The last session closed down 0.24%. The STOXX Europe 600 was up 0.09% in early trading. The U.K.’s FTSE 100 was up 0.15% in early trading. Japan’s Nikkei 225 was up 0.89%. China’s CSI 300 was up 0.22%. Hong Kong’s Hang Seng was up 0.48%. South Korea’s KOSPI was up 2.72%. India’s NIFTY 50 is up 0.87%. Bitcoin was up at $76K.
Around the watercooler
The director of the Congressional Budget Office—known for its gloomy national debt data—is very optimistic that a crisis will be avoided entirely by Eleanor Pringle
Spirit Airlines looked it was in the clear of reemerging from bankruptcy, but rising fuel costs threaten its exit by Jacqueline Munis
Exclusive: Your delivery robot will now offer the blind real-time, on-the-ground eyes around sidewalk hazards by Catherina Gioino
Ford CEO says Tesla doesn’t have an ‘updated vehicle,’ and now he’s pivoting to catch up with his real competitor: China’s BYD by Marco Quiroz-Gutierrez
Elon Musk bans résumés and cover letters in hiring for his chip team. These are the 3 bullet points he’s looking for instead by Jake Angelo
CEO Daily is curated and edited by Andrew Wyrich, Jason Ma, Claire Zillman, and Lee Clifford.
In 2026, the corporate landscape is witnessing significant CEO transitions, marking it as a transformative year in leadership changes among major companies. Notably, Greg Abel has succeeded Warren Buffett at Berkshire Hathaway, Josh D’Amaro has taken over from Bob Iger at Disney, John Furner has replaced Doug McMillon at Walmart, and John Ternus is set to follow Tim Cook at Apple. This wave of leadership shifts comes at a time when several other companies, including Adobe, Coca-Cola, Dow, and BP, are also undergoing CEO changes.
A common thread among these transitions is the urgency surrounding artificial intelligence (AI). Doug McMillon, in his resignation, cited the pressing need for a leader adept at navigating the rapid changes brought about by AI, suggesting that the pace of transformation has accelerated to a level requiring someone “fit for the 800” — a metaphor used by leadership consultant Stephen Miles to indicate the need for agile and capable leadership. Similarly, James Quincey at Coca-Cola echoed this sentiment in his decision to pass the reins to COO Henrique Braun, emphasizing the sprint-like nature of the current business environment.
The impact of a CEO’s tenure on their legacy is another critical factor influencing these transitions. Prolonged leadership can sometimes tarnish a CEO’s accomplishments. For instance, Adobe’s Shantanu Narayen announced his departure after 18 years, despite not having a successor lined up, perhaps to preserve his legacy. Tim Cook’s tenure at Apple has been transformative, growing the company’s market value from approximately $300 billion at Steve Jobs’ passing in 2011 to nearly $4 trillion today. However, concerns about Apple’s lag in AI advancements have raised questions about Cook’s continued leadership in this rapidly evolving landscape, making Ternus, an engineer with a strong background, a fitting successor.
The nature of these leadership transitions is also noteworthy. Most new CEOs are being promoted from within, typically from COO positions, indicating a desire to maintain continuity while accelerating transformation. Unlike a turnaround, which often involves bringing in external leaders to overhaul a company’s culture or strategy, these transitions aim to enhance existing structures without destabilizing the organization. The incoming CEOs are expected to possess a deep understanding of their respective companies, as the need for transformation becomes increasingly urgent in light of changing business paradigms.
In addition to the shifts in corporate leadership, other significant news includes Kevin Warsh, President Donald Trump’s nominee for the Federal Reserve, facing a confirmation hearing where he will likely address questions regarding the independence of the central bank and potential interest rate cuts.
Another pressing concern is the rapid energy demand growth from data centers, which accounted for around 50% of the electricity demand increase in the U.S. last year, according to a report from the International Energy Agency (IEA). This surge in demand coincides with growing public skepticism towards data centers, particularly amid rising anti-AI sentiments.
Moreover, a recent survey of 6,000 executives revealed a disconnect between expectations and outcomes regarding AI. While many believe AI will enhance productivity by 1.5% over the next four years, 90% reported that AI has had no significant impact on employment or productivity in their operations over the past three years.
On the markets front, S&P 500 futures showed a slight increase of 0.23% this morning, following a previous session decline of 0.24%. Global market indicators reflected a mixed sentiment, with Europe’s STOXX 600 and the U.K.’s FTSE 100 showing marginal gains, while Japan’s Nikkei 225 and South Korea’s KOSPI reported more substantial increases.
In lighter news, the director of the Congressional Budget Office expressed optimism about avoiding a national debt crisis, while Spirit Airlines faced challenges with rising fuel costs threatening its recovery from bankruptcy. Additionally, innovations in delivery robots are emerging, enabling real-time assistance for the visually impaired, and Ford’s CEO has shifted focus on competition, particularly towards China’s BYD, while Elon Musk has introduced a unique hiring approach for his chip team, prioritizing specific skills over traditional resumes and cover letters.
Overall, the ongoing shifts in corporate leadership, the pressing need for adept navigation of AI’s transformative impact, and the broader implications of these changes reflect a pivotal moment in the business world as companies adapt to a rapidly evolving landscape.
