Mar 20 January CEO Exits Third-Highest on Record
Public CEO Exits Continue Increase; New Women CEOs Hold Steady
The number of CEO changes at U.S. companies rose 40% to 209 in January from 149 in December. This is down 6% from the 222 CEO exits that occurred in the same month one year prior, according to a report released Friday by global outplacement and executive coaching firm Challenger, Gray & Christmas.
It is the third-highest January total since Challenger began tracking in 2002, following January 2025’s total of 222, and 2020’s total of 219.
“January’s total is coming in hot. On average since we began tracking in 2002, January has seen 116 exits. This is well above that average. When considering the post-Covid era of CEO changes, boards are making these changes at the start of the year, possibly to give CEOs clean runway to show progress during the year,” said Andy Challenger, labor expert and chief revenue officer for Challenger, Gray & Christmas.
While CEO exits fell year-over-year, CEOs from publicly traded companies saw a 47% spike from January 2025. In January, 53 CEOs left public companies, up from 36 in January 2025.
“Public companies are being extremely scrutinized right now. Shareholders and boards are demanding faster results, social media has shortened the window for reputational recovery and shifting government regulations are creating new funding uncertainties for many organizations,” said Challenger.
Meanwhile, CEOs are leaving their posts younger than ever before. December saw the lowest average age for departing CEOs at 51.5. The average age of departing CEOs in January was 51.9, the second youngest. The previous low was just over 52.
The CEO skill set is increasingly rare and valuable, especially as AI reshapes how organizations operate. At the same time, the role has never been more demanding. Burnout, outside opportunities, and relentless scrutiny are all contributing to leaders stepping away earlier in their careers,” said Challenger.
WOMEN CEOs
The rate of new CEOs who are women held steady at 26.1% in January, down from 26.6% in January 2025. It is 2.6 percentage points below the peak of 28.7% of women CEO replacements in all of 2023.
Meanwhile, the rate of outgoing women CEOs is 18% in January, compared to 28% in January 2025. This suggests women may be more likely to hold on to their positions to start 2026 than during the same period in 2025.
“The start of 2025 saw tremendous rhetoric against diversity, equity, and inclusion principles, which no doubt impacted the support women leaders received. That is a loss for those organizations as decades of research show that diverse leadership produces measurable financial and cultural benefits. Companies serious about long-term performance should be rebuilding those pipelines now, not dismantling them,” said Challenger.
What industries saw exits in january?
Government/Non-Profit led all industries with 45 CEO exits in January 2026, down 11.8% from the 51 exits recorded in January 2025 and up from 33 in December. The sector recorded 427 CEO exits in all of 2025, the most of any industry.
Technology followed with 24 CEO exits in January, down slightly from 25 in January 2025 and up from 9 in December. The sector finished 2025 with 208 exits, remaining one of the highest for turnover year over year.
Health Care/Products companies announced 15 CEO exits in January, down 16.7% from 18 in January 2025 and up from 14 in December.
Hospitals reported 14 exits, a 40% increase from the 10 recorded in January 2025 and up significantly from 4 in December.
“Hospitals are under enormous financial pressure right now. Medicare and Medicaid cuts, rising labor costs, and persistent inflation are squeezing budgets while patient care standards remain non-negotiable. At some point, a new leader may be needed to navigate these challenges,” said Challenger.
Financial firms announced 16 CEO exits in January, up slightly from 15 in January 2025 and up from 11 in December.
Entertainment/Leisure companies reported 12 CEO departures in January, down 25% from 16 in January 2025 and up from 7 in December.
Retail companies reported 7 CEO exits, up 40% from 5 in January 2025 and up from 3 in December.
Consumer Products firms announced 7 CEO exits in January, flat compared to January 2025 and down from 12 in December.
Services reported 13 CEO exits, up 18.2% from 11 in January 2025 and up from 12 in December.