Published March 4, 2025
The number of CEO changes at U.S. companies fell 3% in January to 222 from 230 exits in December. It is up 14% from 194 CEO exits recorded in the first month of 2024, according to a report released Tuesday by global outplacement and business and executive coaching firm Challenger, Gray & Christmas.
January’s total was the highest for the month since Challenger began tracking CEO turnover in 2002. The previous record for January occurred in 2020, when 219 CEOs left during the month.
“Due to the ongoing political and economic uncertainty, many companies may find now to be a prudent time to change leadership,” said Andrew Challenger, Senior Vice President and labor expert for Challenger, Gray & Christmas.
Women CEOs
The rate of new CEOs who are women fell to 26% in January from a total of 28% in 2024. It is down from 29% of women who took over the CEO role in January 2024. Meanwhile, 28% of CEOs who left their positions were women in January and 55% of those women were replaced by men. Of the 160 men who left their roles in January, 18% of them were replaced by women.
In January 2024, 21% of CEOs who left the CEO role were women, and 48% of them were replaced by men. Women replaced 20% of the 148 men who left their posts in January 2024.
Interim Leaders
Interim leadership has soared compared to the same month last year. In January 2025, 19% of new leaders were named on an interim basis, compared to 6% in January 2024.
Men were slightly more likely than their female counterparts to be named on an interim basis. In January, 17% of new women CEOs were named on an interim basis, compared to 20% of incoming men. That said, men were much more likely to be named CEO: 74% of new CEOs were men.
“Companies are grappling with the actions of a new administration that is cutting federal spending and eliminating contracts while market fluctuations and new technologies continue to roil company plans. It makes sense to name someone on a temporary basis, but that comes with steep costs,” said Challenger.
“Teams often struggle to coalesce under interim leadership due to the uncertainty surrounding it—how long the tenure will last, whether the leader can effectively manage the existing team, and how team members will be evaluated or retained. This ambiguity can create anxiety and a sense of confusion, leaving employees wondering, ‘Who do I actually report to?’” said Challenger.
“In times like these, it’s wise for companies to continuously look at and update their succession plans,” he added.
What Industries Are Seeing Turnover?
The Government/Non-Profit sector continues to lead in CEO exits, reporting 51 transitions in January 2025. This marks a 7.3% decline from December’s 55 departures, though still higher than January 2024’s 48 exits (a 6.3% increase YoY). The majority of these exits remain concentrated in the Non-Profit space.
The Health Care/Products industry saw a notable slowdown, with 18 CEO departures in January, down significantly from 47 in December (-61.7%) and also marking a 18.2% decrease from January 2024’s 22 exits. However, Hospitals reported 10 exits in January, up from 3 in December (+233%), though slightly below January 2024’s 11 departures (-9.1%).
The Technology sector saw an increase in CEO transitions, recording 25 in January, up from 18 in December (+38.9%), and marking a 19.0% rise from January 2024’s 21 exits. This highlights continued leadership volatility in the sector.
The Entertainment/Leisure industry remained steady with 16 CEO exits in January, the same as in December, but double the 8 recorded in January 2024 (+100%), reinforcing its position as one of the most turbulent sectors.
The Financial sector saw 15 CEO departures in January, a 87.5% increase from December’s 8 exits, and a 66.7% increase YoY from January 2024’s 9 exits. Similarly, FinTech reported 6 CEO changes in January, up from 4 in December (+50%), continuing its trend of elevated turnover.
In the Construction industry, CEO transitions surged to 9 in January, compared to 7 in December (+28.6%), and marking a 125% increase from January 2024’s 4 exits.
The Energy sector saw 4 CEO exits in January, a 33.3% decrease from December’s 6 but double the 2 exits reported in January 2024 (+100%).
The Retail industry experienced 5 CEO departures in January, up from 3 in December (+66.7%), though still lower than January 2024’s 6 exits (-16.7%).
Other notable industry trends:
- Automotive: 3 CEO exits in January, up from 2 in December (+50%) and an increase from 0 in January 2024.
- Pharmaceutical: 6 exits in January, unchanged from December but down 33.3% from January 2024’s 9 exits.
- Real Estate: 5 exits in January, a slight drop from 6 in December (-16.7%), but significantly higher than January 2024’s 1 exit (+400%).
- Services: 11 CEO transitions in January, down from 14 in December (-21.4%), but still a 10% increase YoY from January 2024’s 10 exits.
Where in the U.S. are CEO Exits Happening?
The West region continues to lead in CEO transitions, reporting 72 departures in January 2025, a 12.5% increase from 64 in January 2024. California remains the state with the highest number of CEO exits, with 23 in January, a 15.0% rise from 20 the previous year. Texas saw an even sharper increase, recording 21 CEO transitions, a 31.3% jump from 16 in January 2024. In contrast, Washington saw a significant decline in leadership changes, with 4 CEO departures, down 42.9% from 7 exits a year ago.
The South reported 48 CEO exits in January 2025, a modest 2.1% increase from 47 in January 2024. Florida, which led the region, saw 13 CEO departures, a 18.8% decline from 16 a year prior. Virginia reported a sharp drop, with only 4 CEO transitions, down 60.0% from 10 in January 2024. Meanwhile, Tennessee saw a slight increase, reporting 5 CEO exits, up 25.0% from 4 the previous year.
The East region experienced 57 CEO exits in January 2025, a 21.3% rise from 47 in January 2024. New York remained stable at 14 CEO departures, unchanged from the previous year. Massachusetts saw 10 CEO exits, down 16.7% from 12 in January 2024, while Pennsylvania reported 16 CEO transitions, a 100% surge from 8 a year ago.
The Midwest recorded 47 CEO departures in January 2025, a significant 30.6% increase from 36 in January 2024. Illinois led the region with 8 CEO transitions, a 33.3% rise from 6 in January 2024. Michigan followed with 6 CEO departures, a 50.0% increase from 4 the previous year. Ohio, however, saw a decline, reporting 4 exits in January 2025, down 42.9% from 7 a year ago.
Reasons for Exits
Challenger tracks CEO departures based on the language used in announcements. The leading reason for CEO transitions year-to-date remains “Stepped Down,” with 90 exits in January 2025, representing a 32.4% increase from December’s 68 departures.
“Retired” remains the second most common reason, accounting for 62 CEO exits in January, the same as in December.
“No Reason Given” saw a sharp decline, with 22 CEO exits in January, down 46.3% from 41 in December.
“New Opportunity” was cited 17 times in January, a 22.7% decrease from 22 in December.
Resignations were reported 16 times in January, a 15.8% decline from 19 the previous month.
“Interim Period Over” resulted in 6 CEO departures, unchanged from December.
Less frequent but notable reasons include:
- Acquisition/Merger: 2 CEO exits in January, down 50% from 4 in December.
- Personal Reasons: 1 exit in January, the same as December.
- Death: 1 CEO departure in January, down 66.7% from 3 in December.
- Allegations of Professional Misconduct: 1 departure in January, unchanged from December.
- Differences With Board: 1 CEO transition in January (not reported in December).
- Terminated: 1 CEO exit in January, down 50% from 2 in December.
- Loss of Contract: 1 CEO departure in January, newly reported.
- Relocation: 1 CEO exit in January, newly reported.
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Contact Colleen Madden Blumenfeld for more data or to set up an interview with SVP Andy Challenger.
