Time and again, we see CEOs and similar executives make horrible decisions that massively damage a company both financially and in terms of reputation and the perpetrator is forced to resign, yet receives so much money as a going away present you’d think they’re being rewarded for their fuck up. Why??
The reason a business might not hire a CEO from within is because the CEO needs to represent the interests of the board/shareholders, not necessarily the employees or customers. An existing employee will probably have existing loyalties/disloyalties to different parts/people in the business and not be able to represent the board/shareholders in the way that they want.