Published August 29, 2024
The number of CEO changes at U.S. companies fell 36% to 149 in July from 234 in June. It is down 24% from 197 CEO exits recorded in the same month last year, according to a report released Thursday by global outplacement and business and executive coaching firm Challenger, Gray & Christmas, Inc.
Challenger, Gray & Christmas, Inc. ©
July’s total marks the third time this year that CEO exits were lower than the corresponding month a year earlier. So far this year, 1,250 CEOs have announced their departures, the highest year-to-date total on record. It is up 13% from 1,104 exits that occurred during the same period last year, which was the previous year-to-date record.
“The labor market is softening, and companies are finding ways to lower costs. Companies have made leadership changes in response to AI, the political landscape, and international events causing substantial impacts on business conditions,” said Andrew Challenger, Senior Vice President of Challenger, Gray & Christmas, Inc.
Women CEOs
Leaders of companies are becoming increasingly male after reaching a point where nearly 30% of new CEOs were women in 2022 and 2023. The rate of new CEOs who are women fell 0.2% to 27.9% in July, as the rate of new women CEOs continues to fall month-to-month. It is down from the 29% of new CEOs who were women during the same period last year.
“It’s interesting that as the nation considers electing a woman for president, fewer women are ascending to the CEO role. Many women were tapped to lead during the tumultuous pandemic years but burned out due to lack of support in these roles,” said Challenger.
Where are CEO Exits Happening?
Government/Non-Profit is leading all industries this year with 282 CEO exits, 30 of which occurred in July. Twenty-eight of them were in Non-Profits. This is up 2% from the 277 CEO exits in this sector during the same period last year.
Technology follows with 133 CEO exits this year, 14 in July. That is up 19% from the 112 CEO exits in this industry during the same period last year.
“Shifts in technology, in many cases due to AI adoption and development, are causing the industry to contract. Since last January, we’ve tracked over 200,000 job cuts at tech companies. These organizational shifts often require fresh leadership,” said Challenger.
Indeed, since January 2023, Challenger has tracked 233,895 announced job cuts in the Technology sector, with 65,863 of those occurring in 2024. (The Challenger Report on August Job Cuts will be issued Thursday, September 5th).
Healthcare/Products companies have announced 123 CEO exits this year, 22 in July. This is up 35% from the 91 CEO exits announced through the same period last year.
Hospitals have announced 68 CEO exits this year. Hospital CEO changes are down 32% from the 100 exits recorded through July 2023.
Entertainment/Leisure companies have announced 81 CEO exits, up 40% from the 58 CEO changes that occurred at these firms during the same period in 2023.
Reasons for Exits
This year, 338 CEOs stepped down into other C-level, advisory, or Board roles. Another 323 CEOs left companies without giving a reason, while 279 CEOs retired from their companies.
Challenger, Gray & Christmas, Inc. ©
The average age of exiting CEOs in June was 56, while the average tenure was 13.3 years. This is the highest monthly average tenure since March 2018 when the average tenure was 13.4 years.
“Veteran leaders might be stepping aside in favor of those with greater expertise in navigating the rapid technological advancements on the horizon,” said Challenger.
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Contact Colleen Madden Blumenfeld for more data or to set up an interview with SVP Andy Challenger.
