This year has seen a dramatic rise in CEO departures, with 622 chief executives stepping down in the first quarter of 2024, according to data from outplacement firm Challenger, Gray & Christmas. This marks a staggering 50% increase over the same period in 2023, which had already set records for CEO exits.
Several factors contribute to this surge in resignations, including the ongoing transformation of the business environment, the retirement of the Baby Boomer generation, and the mounting pressure on CEOs to manage complex issues like inflation, supply chain disruptions, and environmental, social, and governance (ESG) responsibilities.
Executive consultancy Equilar reports that the median tenure of CEOs at S&P 500 companies has declined from six years in 2013 to 4.8 years in 2022, reflecting a 20% decrease. This reduction in tenure highlights the growing difficulties and expectations placed on today’s business leaders.
Andrew Challenger, senior vice president at Challenger, Gray & Christmas, noted in the firm’s report that C-level executives have faced exceptionally challenging circumstances in recent years, leading many to seek new opportunities or fresh starts. He also suggested that rapid technological advancements and the upcoming election year could be prompting leadership changes.
While there was a slight uptick in the appointment of women as CEOs in the second quarter of 2024, the overall percentage of new female chief executives has declined year-over-year, dropping to 27.2% in March 2024 from 30% in March 2023.
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