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A record number of American CEOs have left their jobs This year, Challenger, Gray & Christmas said companies are responding to an uncertain landscape by installing temporary leaders.
According to outplacement and executive coaching firm Challenger, Gray & Christmas, a record number of American CEOs have already announced their departure in the year to the end of November.
A report published Friday showed that 1,991 CEOs have said they are leaving, the highest number since the company began pursuing such moves in 2002. This year’s figure surpasses the previous record of 1,914 CEOs.
throughout 2023.
The number includes CEOs of publicly traded companies, private companies, nonprofits and government agencies.
“There is a lot of uncertainty baked into the current landscape, and companies are responding by saying
temporary leaders present. This can act as a trial run to see how the leader navigates the current
challenges,” said Andrew Challenger, senior vice president of Challenger, Gray & Christmas, in a statement.
“It is much less disruptive to replace an interim head if things don’t seem to be working out, not only for the company and its employees, but also for analysts and shareholders.”
The number of departing CEOs at listed American companies also reached a record high: in the first eleven months of 2024 it rose to 327, compared to 300 in all of 2023.
One of the recent examples is Pat Gelsinger, who was forced to resign as Intel CEO earlier this month after the board lost confidence in his turnaround plans. Other major companies that saw top-line revenue this year include iconic names like Boeing, Starbucks and Nike.
The government/nonprofit sector led all categories in CEO departures with 438 years to date, followed by healthcare/products (230), technology (208), entertainment/leisure (139), finance (104), real estate good (47). ), energy (43) and industrial goods (41).
The most common reasons for a CEO’s departure were ‘resignation’ (551), ‘not giving a reason’ (496), retirement (445), new opportunities (148) and resignation (124). In addition, 95 CEOs left after their interim period ended.
Meanwhile, seven CEOs left amid allegations of professional misconduct, six cited disagreements with the board, five were fired and three faced allegations of sexual misconduct.
As CEOs leave, other managers may be less eager to take their place. At the Fortune COO Summit in October, many Chief Operating Officers expressed hesitation when asked if they aspired to the top job.
At the same time, there is less financial incentive to become a CEO as other C-suite jobs are also becoming increasingly lucrative.
