CEO Turnover Ticks Up: In Wake of George Floyd's Death, Three CEOs Out Due to Racism
Chief Executive Officer turnover rose to 91 exits in June, up 9.6% from the 83 departures that were reported in May, according to a report released Wednesday by global outplacement and business and executive coaching firm Challenger, Gray & Christmas, Inc.
Despite the increase, June’s total is 8% lower than the 99 CEO exits reported in June 2019. So far this year, 663 chief executives have left their posts, 8.7% lower than the 726 CEO changes reported between January 2019 and June 2019.
The second quarter saw 222 Chief Executive changes, the lowest quarterly total since the fourth quarter of 2004, when 147 CEO exits were recorded. It is 49.7% lower than the 441 CEO exits tracked in the first quarter of this year, and 28.4% lower than the 310 CEOs who left their posts in the same quarter last year.
Last month’s CEO turnover was 58.4% lower than in January, which saw the highest number of CEO exits (219) ever recorded in a single month. The number plummeted in April to 48, and has been ticking up in May and June.
The majority of exiting CEOs (26) announced they were retiring from their positions, followed by 21 who “stepped down” last month. This means they will stay with the company in some capacity, usually as a Board Member or Chairperson. Another eight saw their interim period end and seven sought new opportunities.