At some point, your business may face a challenging period, such as experiencing rapid growth that requires temporary leadership. In such cases, companies often turn to a fractional CEO or an interim CEO. While their titles sound similar, their roles differ significantly.
A fractional CEO works part-time. They guide strategy and planning, and they focus on long-term goals. You receive leadership without hiring a full-time CEO.
An interim CEO steps in on a full-time basis for a short period. Usually, during a transition, crisis, or leadership gap. They step in to lead the team when there’s no permanent CEO. Once a full-time CEO is hired, they hand over the role and step away.
This guide explains the difference in more detail, so you can make an informed decision.
Why This Matters Now
When a company loses its CEO or needs one quickly, it’s important to keep the business on track. Without clear leadership, decisions stall, teams lose focus, and progress slows down.
Over the next year, more companies will be dealing with leadership changes. Some are planned, like retirements or mergers; others happen without warning, often due to sudden exits or internal shifts.
A recent roundup from Keevee shows that 42% of CEOs leave unexpectedly, and only 35% of companies have a formal succession plan. That’s a big gap. And it’s why more businesses are turning to fractional CEO services or interim CEO services to stay on track. Source: Keevee – Succession Planning Statistics for 2025
What Does Each Role Include?
What Is a Fractional CEO (Chief Executive Officer)?
A fractional CEO is a part-time executive who takes charge of your company’s direction. You get C-suite experience, advice, and leadership without hiring a full-time employee. This role fits small businesses that need leadership but don’t need, or aren’t ready, for a full-time CEO. Fractional CEOs help set strategy and keep teams on track. They also guide growth and keep leadership focused, usually working a few days a week or month, depending on your needs.
Hiring a fractional CEO is a flexible way to bring senior leadership into your company without the cost of a full-time hire.
Common use cases:
- New businesses that need help setting a clear strategy
- Founders who want to step back from daily operations
- Businesses that are getting ready for funding or acquisition. Or planning to expand into new markets.
Benefits of fractional CEO services:
- Clear strategy without long-term commitment
- Senior leadership at a lower cost
- Faster decisions and better team alignment
What Is an Interim CEO (Chief Executive Officer)?
An interim CEO keeps the business running smoothly until a permanent leader takes over.
They’re temporary, but they lead and keep things on track. They also make quick decisions until a long-term CEO is in place, and help the business to maintain momentum. Interim CEO services are helpful during a merger or after a founder leaves, or when a business is recovering after a crisis.
Common use cases:
- Company mergers or acquisitions
- Founder departure
- Crisis recovery or turnaround
Benefits of Interim CEO services:
- Keeps the business stable during leadership gaps
- Makes quick decisions when needed
- Handles transitions without slowing down daily work
Learn how a Fractional CEO can drive strategic growth in our blog: What is a Fractional CEO and Why Your Business Might Need One?
Which Role Fits Your Business Best?
It depends on your business stage.
| Engagement type | Typical cost range | Commitment level | Flexibility |
| Hourly | $150-$600+ | Low | High |
| Monthly | $8,000-$25,000 | Medium | Moderate |
| Project-based | $15,000 to $75,000+ per project | Fixed duration | Depends on scope |
Average Cost Comparison
How to Choose and Get Started
Hiring Questions That Keep You on Track
Clearly identify your needs before hiring a fractional or interim CEO. You can clarify the function and prevent confusion later by asking these questions.
- What’s the focus: stability, growth, cleanup, or transition?
- How much responsibility should they take: just advice, work part-time, or lead the whole operation?
- Is this a quick fix or a longer commitment? What can you spend?
Final Takeaway
The right leader at the right time can steady your team and guide you through change at challenging times. Find someone who fits your goals and pace, who works well with your team.
The Field Group specializes in connecting companies with an experienced fractional CEO or interim CEO who knows how to lead through transitions and growth phases, helping you move forward with clarity.
FAQs:
What is a fractional CEO?
A fractional CEO is a part-time executive who provides strategic leadership to a company without being a full-time employee. They often work with multiple companies at once.
What is an interim CEO?
An interim CEO is a temporary, full-time executive brought in to lead a company during a leadership transition or crisis until a permanent CEO is hired.
How do fractional and interim CEOs differ?
The main differences are in time commitment, duration of engagement, and purpose. Fractional CEOs work part-time and focus on long-term strategy, while interim CEOs usually step in full-time to stabilize or lead during transitions.
When should I hire a fractional CEO?
Hire a fractional CEO if your business needs strategic guidance but doesn’t require a full-time executive—especially helpful for startups or small businesses with budget constraints.
Which type of CEO is better for a startup?
A fractional CEO is usually better for startups needing senior guidance but not yet ready for full-time executive overhead.
