Jun 29 May CEO Exits Rise to 140; YTD 2026 Remains 24% Below Last Year
Government and Non-Profit Turnover Leads; Founder Departures Hit 2026 High
The number of CEO changes at U.S. companies rose 16% to 140 in May from 121 in April. It is down 17% from the 168 CEO exits announced in the same month one year prior, according to a report released Monday by global outplacement and executive coaching firm Challenger, Gray & Christmas.
Through the first five months of 2026, 782 CEO exits have been announced, down 24% from the 1,028 recorded in the same period last year. While May’s total edged up from April’s low, it remains the second-lightest month of the year and well below the monthly pace set in 2025.
“May brought a modest uptick from April, but the broader story has not changed: boards are turning over leaders at a markedly slower rate than a year ago. The year-to-date pace is running a full quarter below 2025, and companies continue to favor stability over change,” said Andy Challenger, labor expert and chief revenue officer for Challenger, Gray & Christmas.
Publicly traded company exits held steady, with 29 public company CEOs departing in May, level with April and down from 39 in May 2025. Through five months, 155 public company CEOs have departed in 2026, compared with 218 in the same period last year.
Stepped Down was the leading reason for departure in May with 59 exits, followed by Retired with 39. Together the two categories accounted for 70% of the month’s departures. Year-todate, 224 CEOs have stepped down and 206 have retired.
“The mix of departures continues to point to orderly, planned transitions rather than crisis-driven exits. Retirements and step-downs dominate, while terminations and board disputes remain rare. That is the signature of a market where leadership change is being managed, not forced,” said Challenger.
WOMEN CEOs
The rate of new CEOs who are women stands at 26.9% year-to-date, up from 25.3% in the same period of 2025 and ahead of last year’s full-year rate of 25.4%. The rate of outgoing women CEOs was 29% in May, up from 24% in May 2025. Year-to-date, the outgoing women rate sits at 22%, below the 23% recorded through May 2025.
“This is good news. Women are being appointed to the top job at a higher rate than a year ago. The fact that the share has held up through a slower market suggests boards are continuing to develop and promote diverse leadership pipelines rather than letting them lapse,” said Challenger.
WHAT INDUSTRIES SAW EXITS IN MAY?
Government/Non-Profit led all industries with 37 CEO exits in May, up from 30 in April and from 34 in May 2025. Year-to-date, the sector has recorded 199 exits, the most of any industry, though down 6% from 212 in the same period of 2025.
Technology followed with 15 exits in May, up from 12 in April but down from 20 in May 2025. The sector’s year-to-date total of 78 trails last year’s 114, a 32% decline.
Hospitals reported 14 CEO exits in May, easing slightly from 16 in April but well above the 5 recorded in May 2025. The sector has posted 64 exits year-to-date, up 25% from 51 in the same period of 2025 — one of the few industries running ahead of last year’s pace.
Food companies announced 8 exits in May, up from 3 in April and from 2 a year prior. Health Care/Products recorded 7, up from 4 in April but down from 15 in May 2025; year-to-date the sector has posted 53, down sharply from 101. Financial firms reported 6 exits, Consumer Products 5, Retail 5, and Utility 5 — the last up from zero in April.
Entertainment/Leisure cooled to 5 exits in May, down from 8 in April and from 19 in May 2025; its year-to-date total of 49 is down 42% from 84 a year ago, one of the steepest declines of any industry.
WHERE DID CEO EXITS OCCUR YEAR-TO-DATE?
The West led all regions year-to-date with 269 CEO exits through May, down 20% from 336 in the same period of 2025. California posted 89 exits, down from 125 a year prior, and remains the single most active state. Texas followed with 65, down from 83. Washington bucked the regional trend at 29 exits, up from 25 a year ago.
The South reported 177 CEO exits year-to-date, down 29% from 248 in the same period of 2025. Florida held flat at 49 exits versus 50, while Georgia fell sharply to 23 from 45 and North Carolina to 21 from 37. Virginia edged higher to 25 from 22.
The East logged 171 CEO exits year-to-date, down 24% from 226 in the same period of 2025. New York led the region with 51 departures, down from 60 a year ago. Pennsylvania declined to 31 from 51, and Massachusetts to 27 from 34.
The Midwest recorded 166 CEO exits year-to-date, down 24% from 217 in the same period of 2025. Ohio companies announced 41 exits, the most in the region and above last year’s pace of 37. Illinois fell to 29 from 40, and Wisconsin to 7 from 23.
WHY DID CEOs LEAVE IN MAY?
Stepped Down led all reasons in May with 59 exits, followed by Retired with 39. Resigned accounted for 9 departures and Interim Period Over drove 8, the latter continuing to resolve the wave of interim appointments made during 2025. Acquisition/Merger accounted for 6 exits.
Notably, no CEO departures in May were attributed to “No Reason Given,” down from 22 in April, possibly indicating that companies were more forthcoming about the rationale for transitions during the month. Other reasons included Restructuring (4), Allegations of Professional Misconduct (3), Terminated (2), Personal Reasons (2), Differences with Board (2), Death (1), and Relocation (1).
Founder departures reached a 2026 monthly high, with 25 of the CEOs who left in May having founded the companies they led. That brings the year-to-date total of founder exits to 88. Founder departures often signal maturation events, capital raises, acquisitions, or generational transitions in family- and founder-owned businesses.
“The steady stream of founder exits is one of the more telling trends of the year. As private companies mature and pursue capital or sale events, founders are increasingly handing the reins to professional operators. We expect that pattern to persist,” said Challenger.