What: The widespread erosion of trust in corporate leadership is prompting companies to seek transformative executives, as demonstrated by Nike's recall of Elliott Hill from retirement and Berkshire Hathaway's preparation for Greg Abel's succession of Warren Buffett.

Why it is important: This shift towards experienced, trusted leaders reflects a critical moment in corporate governance where companies must balance innovation with stability, particularly as the retail industry faces unprecedented challenges in maintaining stakeholder confidence.

The latest Edelman Trust Barometer reveals a concerning decline in trust across institutions, with people increasingly skeptical of media, corporations, governments, and NGOs. This trust deficit is driving significant leadership changes across major companies. Nike's decision to bring Elliott Hill out of retirement after 36 years with the company represents a strategic move to "re-energize the base," as noted by industry executives. Similarly, Berkshire Hathaway's carefully planned succession, with Greg Abel set to follow Warren Buffett, demonstrates a preference for proven internal leadership. These transitions come at a time when more than 60 national elections worldwide have shown a clear pattern of incumbent losses, reflecting a broader societal demand for leadership change. The emphasis on selecting leaders with deep institutional knowledge and proven track records suggests companies are prioritising stability and trustworthiness over external disruption in their efforts to rebuild stakeholder confidence.

IADS Notes: Recent retail leadership changes reflect this broader trend toward trusted executives. In October 2024, several major retailers underwent significant leadership transitions , while others like John Lewis restructured their governance to focus on core retail expertise . Harvey Nichols' appointment of experienced luxury retail veterans  and Macy's addition of former Hermès CEO Robert Chavez to its board  further demonstrate the industry's emphasis on proven leadership during uncertain times.

The trust factor: why companies are changing leaders