Workplace expert Andy Challenger talks about why CEOs leave and how they affect companies.
CEOs are leaving their posts at a higher rate than last year, when CEO turnover hit a record high.
Latest CEO change report As of the end of August, 1,450 CEOs had announced their resignations, the highest total since the start of the year, according to research by coaching firm Challenger, Gray & Christmas. This is a 15% increase compared to the 1,261 departures recorded in the same period last year (this is the year-to-date record).
CEO turnover will increase at an unprecedented pace in 2024, on track to surpass last year's annual record. (license/image)
Andy Challenger, senior vice president and labor expert, told FOX Business that “a number of issues are converging and as a result, the board has made the decision to bring in new leadership.” spoke.
“There is some economic uncertainty, which historically leads to leadership changes,” he said. “Meanwhile, the pace of development and adoption of new technologies is increasing, and new ways of operating are emerging, potentially better executed by new leaders.”
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The sectors with the highest CEO turnover rates were nonprofits (311), followed by technology (153) and healthcare (152).
According to Challenger research, nonprofits had the highest CEO turnover this year, followed by technology and healthcare. (license/image)
According to the report, 406 CEOs across industries have left the top position to take on other executive-level, advisory or board roles, 361 have left without giving a reason, and a further 333 have resigned.
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So far this year, 80 CEOs have left their companies to pursue new opportunities, and a similar number have resigned. Less amounts were withdrawn at the end of an interim period or due to mergers and acquisitions. Others were formally fired for various reasons, and more than a dozen died.
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The average age of CEOs retiring in August was 61, according to the survey, making it the best month since October 2021, when the average age was 62.
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Challenger suggested this is evidence that trends that occurred during the COVID-19 pandemic are emerging again.
“It appears that long-time leaders and senior leaders are stepping down during this period, something we haven't seen since the pandemic,” he said.
