CEO exits up at unprecedented rate, study finds
Data shows chief executive turnover spiked in August and is at the highest level on record so far in 2024
Report finds record number of CEOs left jobs in 2023
Workplace expert Andy Challenger on why CEOs have left and how this has impacted companies
Chief executives are leaving their posts at a higher rate than last year, when CEO departures hit an all-time high.
The latest CEO Turnover Report from coaching firm Challenger, Gray & Christmas found that 1,450 CEOs had announced their exits as of the end of August, marking the highest-year-to-date total on record. That is up 15% from the 1,261 departures recorded by the same time period last year, which was the previous year-to-date record.
Chief executive turnover is up in 2024 at an unprecedented pace, on track to beat the annual record from last year. (iStock / iStock)
"Several issues are converging resulting in boards’ decisions to bring in new leadership," Andy Challenger, senior vice president and labor expert, told FOX Business.
"There is a bit of economic uncertainty, which historically leads to leadership changes," he said. "Meanwhile, the increasing pace of development and adoption of new technologies is leading to new ways of operating, which may be better implemented by new leaders."
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The sectors that experienced the highest amount of CEO turnover were led by nonprofits at 311, followed by tech (153) and health care (152).
The Challenger study found nonprofits have seen the highest CEO turnover this year, followed by tech and health care. (iStock / iStock)
The report found 406 CEOs across all industries have stepped down from the top spot and into other C-level, advisory or board roles, while 361 left without giving a reason, and another 333 retired.
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Eighty CEOs have left their companies for new opportunities so far this year, and the same number resigned. A lesser amount exited because their interim term ended, or due to a merger or acquisition. Others were formally fired for an array of reasons, and a dozen passed away.
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The study showed the average age of departing chief executives in August was 61, which is the highest average of any month since October 2021, when the average age was 62.
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Challenger suggests this is evidence of a re-emerging trend that occurred during the COVID-19 pandemic.
"Long-time and older leaders appear to be stepping down during this period, something we haven’t seen since the pandemic," he said.