The Kestria Global Leadership Barometer 2026 reveals a strong domestic focus in executive recruitment: 52.5% of organisations favour local leadership talent, compared with just 10.1% that actively recruit internationally. A further 12% are open to international candidates but do not pursue them proactively. Building on these findings, Kestria interviewed senior executives from different markets about when cross-border appointments add value and what organisations should consider when developing future-ready executive hiring strategies.
Despite operating in a global economy, many organisations still prefer local leadership. What factors are driving this shift?
Odysseas Christodoulou, Head of the PSR Pillar for Greece at Royal Canin, explains that despite global economic integration, multinational organisations are increasingly appointing local rather than expatriate or centrally selected leaders. ‘This reflects an evolution in global strategy, combining global scale and resources with local agility, cultural understanding and regulatory expertise.
Geopolitical fragmentation is a key factor, as complex data privacy laws, AI standards and trade regulations require leaders who understand domestic frameworks and have established relationships with local authorities. Cultural intelligence is equally important, enabling leaders to adapt products and marketing strategies while strengthening trust among customers, partners and suppliers.
Local appointments also create clearer career pathways, improve engagement and retention, and demonstrate confidence in the regional workforce. Furthermore, developing local leaders reduces the substantial costs associated with expatriate assignments and enables faster, context-specific decisions without delays from distant headquarters.’
Pedro Gomes Santos, Group VP – CEO Portugal at Inetum, identifies five main factors driving this preference. ‘First, organisations need rapid market understanding. Local leaders already know the market, customer ecosystem, decision-making networks and talent landscape, reducing the time between diagnosis and action.
Second, trust has become a strategic asset. In uncertain environments, employees and customers value leaders who understand their circumstances and demonstrate commitment to the market. International experience may be impressive, but credibility must be earned.
Third, culture is an execution system, not a soft issue. Global values must be translated into local behaviours, as the same communication style, incentive model or transformation programme can produce different results across markets.
Fourth, companies face growing pressure to deliver results quickly. Boards have less patience for lengthy adaptation periods, while local leaders bring established relationships, institutional knowledge and market credibility.
Finally, global complexity has increased. Appointing an international executive does not automatically create international capability and may add distance, complexity and slower decision-making.
The shift is therefore not simply about local versus global leadership, but about proximity, legitimacy and execution speed.’
Truc Huynh, Vice President, Country Head of People, Coca-Cola Beverage Vietnam, highlights three key factors driving this preference. ‘Local leaders bring a strong understanding of the culture, enabling them to interpret local expectations and workplace dynamics effectively. They may also demonstrate greater long-term commitment and more sustained engagement with employees and customers, particularly when expatriate executives work under fixed-term contracts.
At the same time, organisations increasingly recognise that there is little difference between the leadership capabilities of local and expatriate talent, allowing appointments to be based on the organisation’s specific needs rather than assumptions about an executive’s background.’
When does hiring executive talent internationally create a competitive advantage, and when is local leadership the better choice?
For Truc Huynh, international executives offer a clear advantage when an organisation requires diverse skills and experience. ‘Such capabilities are often gained in other markets and are particularly valuable when they are difficult to source locally. In such circumstances, international recruitment provides access to a broader range of expertise and practical knowledge developed across different business environments.
By contrast, local leadership is generally preferable when success requires deep market knowledge, context-specific know-how and relevant experience. Local executives can draw on an established understanding of the domestic environment, supporting more sustainable engagement over time. They are also often more cost-effective, enabling the organisation to meet its leadership needs without the additional expense associated with sourcing talent internationally.’
Expanding on Truc Huynh’s perspective, Pedro Gomes Santos identifies the specific capabilities that can make international executive talent a competitive advantage. ‘This may include:
- experience leading a transformation or post-merger integration of comparable scale;
- knowledge of a new business model;
- access to international customers, partners or ecosystems; and
- the ability to build cross-border operations or challenge an organisation that has become too inward-looking.
An international appointment is particularly valuable when the objective is not simply to improve the existing business, but to transform its operating model or connect it to wider opportunities. However, international experience alone is insufficient. The executive must demonstrate cultural humility, the capacity to listen and the ability to develop a strong local leadership team. The purpose should not be to import a supposedly superior model, but to combine new capabilities with local insight.
Local leadership is preferable when the organisation already understands what must be done and the principal challenge is implementation rather than strategic reinvention. In my view, the most effective solution is often a complementary leadership structure: a leader with a global perspective and local legitimacy, supported by a diverse team combining international experience with deep market knowledge.’
Odysseas Christodoulou emphasises that the choice between international executive talent and local leadership should reflect an organisation’s objectives, the regulatory and cultural context of the target market and the complexity of its operating model. ‘International executives offer the greatest value when a business requires structural transformation, global alignment or rapid capability transfer. They can introduce proven technologies and business models, maintain consistent corporate standards and act as effective links with headquarters when local operations need resources or swift approvals. Their broader perspective is also valuable in regional roles requiring coordination across several markets.
Local leadership is generally preferable when success depends on consumer insight, trusted relationships, regulatory knowledge and rapid execution. Locally embedded executives understand cultural expectations, domestic laws and political dynamics, and often bring established networks of customers, distributors and partners. They can adapt products and services effectively, reduce relocation costs and avoid the risks associated with unsuccessful expatriate assignments.
For high-stakes market entry, a hybrid model may provide the strongest outcome. International executives can initially establish the corporate framework, transfer expertise and align the new operation with global standards. Leadership can then transition to local executives within 12–24 months, enabling the business to become more deeply embedded in the local market while maintaining strategic continuity. This approach combines global expertise with long-term local credibility and operational resilience.’
What should organisations consider when developing a future-ready executive hiring strategy?
Truc Huynh considers succession planning aligned with the organisation’s five-to-ten-year objectives to be the foundation of a future-ready executive hiring strategy. ‘This enables future leadership requirements to be anticipated and ensures that talent decisions support the organisation’s long-term direction. Critical roles should also be assessed regularly, with active sponsorship from top management to maintain accountability and strategic focus.
Organisations should demonstrate a sustained commitment to developing internal talent while building strong external networks through executive search partners, industry forums and professional associations. Combined with ongoing talent mapping, this balanced approach strengthens the leadership pipeline and ensures access to individuals with the capabilities required to meet the organisation’s future needs.’
According to Odysseas Christodoulou, developing a future-ready executive hiring strategy requires organisations to move beyond reactive, position-filling recruitment towards a more agile, predictive and human-centred approach. ‘Four priorities are particularly important. First, organisations should adopt skills-based hiring and behavioural assessment, placing less emphasis on traditional credentials and focusing instead on practical expertise and demonstrated capability. Direct skills testing, psychometric profiling and a balanced range of assessment methods can provide a fuller evaluation of cognitive ability, behavioural traits and cultural alignment.
Second, future executives should demonstrate distinctly human competencies that technology cannot automate, including emotional intelligence, trust-building, strategic judgement, and ethical and legal accountability. These qualities are essential for leading transformation, defining organisational direction and managing complex risks and trade-offs.
Third, organisations need leaders who can use AI strategically. AI can support data synthesis, scenario modelling and initial reporting, allowing executives to focus on culture-building, stakeholder management and organisational change.
Finally, a visible commitment to executive well-being can strengthen talent attraction and retention, while embedding diversity, equity and inclusion within recruitment can broaden access to non-traditional candidates and bring a wider range of problem-solving perspectives into leadership.’
Looking beyond the current job description, Pedro Gomes Santos states that a future-ready executive hiring strategy should begin with the organisation’s future business model. ‘The central question is: what leadership challenges will this individual need to address over the next three to five years? Five dimensions should guide the assessment:
- Strategic context: Define the transformation the organisation must deliver, whether growth, internationalisation, operational improvement, integration or cultural renewal. The executive profile should reflect this mandate.
- Adaptability and execution: Past success matters, but the ability to learn and adjust is more important than repeating a previous formula. Candidates should be assessed through real decisions, failures, trade-offs and measurable outcomes, including how they responded when an initial approach failed.
- Cultural intelligence: Leaders must operate effectively across cultures while respecting local differences and protecting the organisation’s shared values and purpose.
- Value creation: Assessment should extend beyond revenue growth to include margin, cash generation, customer value, stronger capabilities and organisational sustainability.
- Team building: Effective leaders attract strong people, encourage constructive challenge and build teams that can perform without excessive dependence on one individual.
Future-ready hiring should also connect with succession planning, internal mobility, leadership development and executive-team composition. The objective is not simply to appoint the strongest individual, but to build the most effective leadership system for the organisation’s next chapter.’
Conclusion
Effective executive hiring is not simply a choice between local and international leadership, but a strategic decision shaped by organisational priorities, market context and future capability needs. The Kestria Global Leadership Barometer 2026 confirms a strong preference for local talent, while the perspectives shared here show that international executives can add significant value when specialised capabilities, transformation experience or cross-border expertise are required. By combining global perspective with local knowledge, and supporting both through succession planning and leadership development, organisations can build adaptable leadership systems that support long-term growth.
