FTI Consulting has reversed a leadership succession plan it outlined less than a year ago, reinforcing the authority of its long-serving chief executive, Steve Gunby. The 68-year-old executive is now expected to remain at the helm of the US-listed consulting firm until at least 2029, a shift that has reportedly led to the departure of his potential successor.

In June of the previous year, prior to the company’s annual shareholder meeting, FTI combined the roles of chairman and CEO under Gunby as an interim arrangement, stating that this would position him to mentor his eventual replacement. At that time, the company indicated plans to appoint a new CEO before Gunby’s contract expired in mid-2027.

However, Lars Faeste, who joined FTI in 2022 from Boston Consulting Group to lead its European operations and who was widely seen as the successor to Gunby, exited the firm after it became clear that the leadership transition would be delayed. Another possible candidate, former chief growth officer Carlyn Taylor, left the company earlier after receiving signals from the board that the CEO role was not yet open for succession.

Regulatory filings in December confirmed an extension of Gunby’s contract until 2029, and Faeste is now listed on FTI’s website as a senior adviser rather than an executive leader. The company expressed gratitude for Faeste’s contributions but did not elaborate on the internal changes. Both Faeste and Taylor declined to comment on their departures.

FTI has also experienced turnover in its economic consulting division, notably following the resignation of Jonathan Orszag, who left to start a competing firm. Under Gunby’s leadership since his appointment in 2013, after three decades at Boston Consulting Group, FTI’s stock outperformed the S&P 500 for several years before losing much of that edge last year, largely due to challenges within the economic consulting segment.

The firm is expected to announce a date soon for its 2026 shareholder meeting, where investors will vote on Gunby’s reappointment. Shareholder opinions on the extended role of Gunby have been mixed. Some have praised his strong track record and welcomed the continuity, while others have reduced their holdings, criticizing the consolidation of power and expressing doubts about the board’s approach to leadership transition.

An investor critical of the move described the process as “messy and unnecessary,” questioning whether Gunby, who already wielded significant influence, would effectively mentor a successor as intended. The company, however, characterized leadership changes as a natural evolution that supports the firm’s ongoing progress and infusion of new talent.