Restructuring Realities: Why Boards Are Choosing Chief Restructuring Officers Over Industry Veterans

Damian McCarthy
5 days ago
3 min read

Updated: 5 days ago

A guide for boards, lenders, and investors navigating business-critical turnaround scenarios.

In times of crisis, companies often face a pivotal choice: Who should take control of the business to lead it through a turnaround or restructuring? Boards and financiers may consider two common internal options (often to work in conjunction with their chosen external legal and financial advisors):- An industry veteran—someone who knows the market, customers, and operating model intimately- A restructuring expert—someone who understands crisis management, capital structure and stakeholder negotiation. While deep sector knowledge has value, when survival, stabilisation, and complex stakeholder management are on the line, appointing a restructuring-focused Chief Restructuring Officer (CRO) can be the difference between recovery and collapse.

Here’s why.

Crisis Management Requires a Different Skill Set

Industry veterans often excel in growth or operational improvement—but crises demand skills many haven’t needed to develop: Navigating cash burn and liquidity crisis; Running 13-week cash forecasts; Engaging lenders, lawyers, insolvency professionals; Leading high-stakes stakeholder negotiations; Rapid decision-making under legal and regulatory pressure.

Independent Credibility With Stakeholders

Restructuring situations often involve: Bank workout teams; Special Situations Funds; Equity Investors under pressure; Trade Creditors and employee groups. A CRO is independent, neutral, and focused on outcomes—earning faster trust and cooperation from all parties.

Speed and Decision-Making Discipline

In crisis, speed matters. Restructuring experts:- Are used to making decisions with imperfect data; Know how to triage priorities fast; Lead without legacy attachments; Focus on cash, creditors, contracts—and runway.

Strategic Optionality and Exit Thinking

A good CRO isn’t just about survival. They’re thinking 3 steps ahead:- What does an acceptable outcome look like? Is this business saleable as-is? Can parts of the group be restructured or sold? How long will a turn-around take? Can the turn-around be funded?What risks are rising (legal, reputational, capital) that need action?

Team Rebuild and Interim Structure Design

Businesses in distress often suffer from: Leadership gaps; Dysfunctional finance teams; Disconnected reporting or systems. CROs understand how to implement interim management structures to stabilise operations and reporting quickly.

Coexistence with Industry Executives

Appointing a CRO doesn’t exclude industry input. The ideal model often includes: A CRO focused on cash, stakeholders, and options; A COO or CEO focused on operations and teams. It’s not either/or—it’s fit for purpose. But only one has the mandate to navigate crisis strategy and negotiations.

How we Work with Advisors and Legal Professionals

At Boardroom Bench, we work alongside insolvency professionals, restructuring lawyers, and corporate advisors. Often we take on the dual CRO and NED role in complex restructures- roles that our client's aren't normally able to take due to conflicts of interests and risk. Our CROs and finance leaders integrate into existing advisory teams to execute strategy on the ground. We add operational firepower and stakeholder engagement capability without undermining existing advisor relationships. We’ve worked with owners, restructuring professionals, funders, banks, and legal teams across complex and high-pressure environments—and always with the aim of protecting enterprise value and delivering agreed outcomes.

When the stakes are high, you don’t just need sector familiarity—you need experience in navigating distress, aligning stakeholders, and creating optionality. That’s what CROs deliver—and why more boards are choosing experience over familiarity.

Why Boardroom Bench? We don’t source candidates—we deploy trusted, hand-selected CROs who have operated in high-pressure roles and are backed by active oversight throughout each engagement. Whether you're navigating uncertainty, transition, or growth, we help you access leadership that delivers outcomes—without delay.