Hiring CEOs and NEDs in Tech: Getting it Right at The Top

The appointment of a new CEO or Non-Executive Director (NED) is one of the most consequential decisions any business will make. In the world of venture and private equity-backed technology companies, the stakes are particularly high. Investors are backing a company not just for its product or market, but for the leadership team that will deliver the growth story.

We spoke with Peter Franks, founder of executive search firm Neon River, about what makes these searches so different and so important. Having led many CEO and NED searches for high-growth software and tech businesses, Franks has a front-row view of how the best leaders are hired and why the wrong approach can lead to painful mistakes.

 

What Makes A Great CEO?

 

The most successful CEOs in technology businesses tend not to be generalists in the traditional sense. “Almost all CEOs have a functional spike,” says Franks. “They’re not equally strong across every part of the business, nor should they be. The best CEOs understand where they’re strong, and they build complementary leadership teams around them.”

For B2B software companies, this spike is often commercial: a track record of building and leading sales organisations, experience in pricing and packaging, or expertise in go-to-market strategy. In B2C businesses, Franks explains, the emphasis often shifts.

“You’re looking for someone who really understands product and marketing and is exceptionally data-driven. The pattern recognition is different, but the principle is the same. You’re rarely looking for a general manager who dabbles in every area. You want a leader who knows where they add value, and who empowers others in the areas where they don’t.”

Prior P&L ownership is always helpful, particularly for first-time CEOs. But it’s rarely the only thing that matters. “Plenty of excellent CEOs step up for the first time with strong functional leadership behind them. But you’re still looking for signs of commercial judgment, maturity under pressure, and the ability to balance stakeholders’ needs.”

Defining What Good Looks Like

 

One of the most important and underappreciated parts of any CEO search is alignment. “Getting all stakeholders on the same page about what ‘good’ looks like is harder than it sounds,” says Franks. “You may have a founder, a Chairman, and multiple investors  all with slightly different views. Until those expectations are surfaced and reconciled, the risk of mis-hire is high.”

Franks describes a common tension between ‘storytelling’ CEOs and ‘operational’ CEOs. “Some boards want a visionary; someone who can raise capital and inspire teams. Others want a steady hand; someone who’s scaled a business and knows the pitfalls. Often they want both. But in the real world, candidates tend to lean one way or the other. You have to choose the right shape of CEO for the company’s stage and needs.”

Previous experience in high-growth, founder-led, or investor-backed companies is usually a strong signal. “It’s a very particular kind of environment,” says Franks. “You need resilience, adaptability, and strong communication skills to navigate the complexity.”

 

What Makes A Strong NED Or Chairman?

 

There was a time when Non-Executive Directors were seen primarily as guardians of governance. Today, particularly in VC and PE-backed companies, the bar is different. “In early and growth-stage businesses, NEDs and Chairmen are expected to add real commercial value,” says Franks. “It’s not about ticking boxes. It’s about helping shape product strategy, advising on go-to-market, or supporting the CEO on key hires.”

Franks explains that for many CEOs, especially first-timers, the relationship with the Chairman can be critical. “Being a CEO is lonely. You’re managing investors, leading a business, and balancing short and long-term priorities. A good Chairman provides support, not pressure. They help make sense of the noise and provide perspective, especially when things get tough.”

For Boards to work well, the dynamic needs to be collaborative, not adversarial. “Too often, Boards feel like they’re there to judge the CEO’s performance,” Franks says. “But the best ones act more like a strategic partner. The CEO needs to be open and honest about challenges and that only happens if they trust their NEDs to be supportive.”

 

How The Best Searches Are Run

 

Neon River has built a reputation for thoughtful and precise searches at the senior-most levels. Franks credits this to the firm’s willingness to challenge assumptions and invest time upfront.

“Every CEO and NED search starts with a deep discovery phase,” he says. “We spend time with the Chairman, the investors, the management team to understand the real context behind the hire. What kind of business is this? Where is it in its lifecycle? What does success actually look like, one or two years in?”

The next step is market mapping identifying not just the obvious candidates, but often the under-the-radar ones who aren’t actively looking. “We don’t just recycle names,” says Franks. “We do original research for every search, whether we’re hiring a CEO for a late-stage PE-backed business or a Chairman for a Series A startup. That’s where the value lies.”

 

AI, Disruption And New Leadership Challenges

 

Franks notes that recent years have brought a new set of challenges for CEOs and their boards. “The hype around AI is real but so are the opportunities,” he says. “We’re starting to see meaningful shifts in how software is developed and delivered. For leaders, that means staying informed and being able to separate substance from noise.”

But AI is just one theme in a broader story. “Tech businesses have become more complex and leadership requirements have changed with them. Today’s CEO needs to understand how product, engineering, sales, and marketing fit together. Even if they’re not experts in each, they need to know enough to hire and empower the right people and to ask the right questions.”

That, Franks suggests, is why hiring the right leaders at the top matters so much. “Great companies are built by teams, not individuals. But it starts with the CEO and the board that supports them.”