230 December CEO Exits, Third Highest Month on Record; Public Company CEO Exits Hit Record

Published January 30, 2025

The number of CEO changes at U.S. companies surged 38% in December to 230 CEO exits from 167 in November. It is up 13% from 204 CEO exits recorded in the same month in 2023, according to a report released Thursday by global outplacement and business and executive coaching firm Challenger, Gray & Christmas, Inc.

December’s total was the third-highest monthly total on record. The three-highest monthly totals all occurred in 2024: 248 in February, 234 in June, and 230 in December. Prior to 2024, the previous monthly record was set in January 2020 with 219 CEO exits.

In the fourth quarter, 569 CEOs left their posts, up 3% from the 551 tracked in the third quarter of 2024, and up 16% from the 489 CEO exits recorded in the same quarter one year prior. The first quarter of last year saw the most CEO exits in a single quarter ever recorded.

Source: Challenger, Gray & Christmas

In 2024, 2,221 CEOs announced their departures, the highest total on record, since Challenger began tracking CEO changes in 2002. It is up 16% and has surpassed the previous record of 1,914 CEO exits that occurred in all of 2023.

Meanwhile, CEO turnover at public companies soared in 2024 to the highest on record. 373 CEOs left public companies last year, up 24% from the 301 who left public companies in 2023. It is up 20% from the previous record of 312 CEO exits recorded in 2019.

Source: Challenger, Gray & Christmas

Trends in CEO Turnover

Challenger identified a confluence of factors that led to record-high CEO Turnover in 2024.

“The environment of economic, political, and regulatory uncertainty that prevailed in 2024 certainly led to many CEO exits. With that as a backdrop, we also saw rapid technological advancement and boards that were laser focused on efficiency and productivity. If CEOs were perceived to be lacking, they were not tolerated,” said Andrew Challenger, workplace authority and Senior Vice President of Challenger, Gray & Christmas, Inc.

Activist Shareholders

An increasing number of companies grappled with activist shareholders who specifically went after companies’ diversity, equity, and inclusion efforts. Many called for new leadership as well.

Perceived Failed Turnaround Efforts

As is often the case with CEO turnover, if a leader embarks on a restructuring or turnaround effort and does not appease stakeholders, a new leader will be appointed.

Founder Exits

In 2024, 143 founders left their roles as CEO, suggesting a new growth phase, direction, or disruption. This is compared to 29 founders who left their CEO roles in 2023.

Increased Private Equity Activity

Private equity deal value increased 36% in Q2 and Q3, according to an October report from EY. Many transactions also come with leadership changes at portfolio companies.

Artificial Intelligence (AI) & Automation

The rapid development, adaption, and implementation of AI of automation led to many corporate decisions for new leadership.

Lingering Burnout

While not as prevalent as in the immediate post-pandemic years, CEOs have had to grapple with an increasing number of variables since that time period, and many may have decided now was a good time to step away.

Women CEOs

The rate of new CEOs who are women fell 0.7 percentage points to 28% in 2024 from 28.7% in 2023. That year saw the highest rate of incoming women CEOs since Challenger began tracking in 2010.

Source: Challenger, Gray & Christmas

“Fewer than a third of new CEOs are women, showcasing a persistent gender gap. With many major companies reversing course on supporting DEI efforts, 2025 may see this rate tumble even lower,” said Challenger.

In 2024, 16% of women CEOs were not permanent replacements, compared to 13% of male CEOs. In 2023, both men and women were named to interim roles 7% of the time.

Interim Leaders

In fact, the appointment of interim leaders nearly doubled in 2024 to 13.5% from 6.8% in 2023. This suggests companies may not have succession plans in place for their leaders’ exits.

“Many boards took a ‘fail fast’ approach in 2023 and 2024. If a leader failed to show growth or measure progress, shareholders lost confidence and brought in someone else.

“An interim leader may seem like a less disruptive choice for a company, especially during periods of significant change, as we saw in 2024 and will likely continue to see in 2025. However, aligning teams and driving toward shared goals can be challenging. Without full buy-in, remaining executives may struggle to collaborate effectively with a temporary leader, leaving teams feeling uncertain and uncommitted,” said Challenger.

What Industries Are Seeing Turnover?

The Government/Non-Profit sector continues to lead in CEO exits, with 493 year-to-date, primarily in the Non-Profit space. This is an increase from 486 in 2023. In December 2024, there were 55 CEO exits, 52 of which were Non-Profits, up from 34 in November.

The Health Care/Products industry follows closely with 277 CEO exits so far this year, a significant rise from 189 in 2023. However, the Hospitals sector reported 104 CEO exits year-to-date, a decline from 146 last year.

The Technology sector recorded 226 CEO transitions year-to-date, a notable increase from 173 in 2023. In December 2024, there were 18 CEO exits, compared to 16 in November.

The Entertainment/Leisure industry saw a sharp rise, reporting 155 CEO exits in 2024, up from 96 in 2023. This sector experienced 16 CEO transitions in December, following 19 in November, marking it as one of the most volatile industries.

The Financial sector reported 112 CEO transitions year-to-date, slightly down from 116 in 2023, while Services recorded 116 exits, a small decrease from 121 last year.

The Energy sector saw continued CEO turnover with 49 exits year-to-date, up from 38 in 2023. Similarly, Industrial Goods saw 44 CEO transitions, up from 25 last year.

In the Real Estate sector, 53 CEO exits were recorded year-to-date, more than double the 25 reported in 2023. Meanwhile, the Pharmaceutical industry reported 60 transitions year-to-date, an increase from 52 in 2023.

Other notable industries include:

  • Automotive: 26 CEO exits year-to-date, up from 17 in 2023.
  • Construction: 39 transitions, up from 25 one year prior.
  • Retail: 40 CEO exits, down from 52 in 2023.

Where in the Us Are CEO Exits Happening?

The West region leads in total CEO transitions with 668 exits year-to-date, up from 563 in 2023. California remains the state with the highest number of CEO departures at 223, up from 213 last year. Texas follows with 133 CEO exits, an increase from 121. Washington has seen 73 CEO exits, a significant jump from 43 in 2023.

The South reported 452 CEO exits, with Florida leading at 118, slightly up from 114 in 2023. Virginia reported 60 exits, a major increase from 40 last year, while Tennessee saw 55 CEO departures, up from 46.

The East region recorded 474 CEO exits, with New York (138) and Massachusetts (93, up from 71 in 2023) leading the way. Pennsylvania followed with 81 CEO transitions.

The Midwest saw a total of 397 CEO exits, led by Ohio (84) and Illinois (67). Michigan followed with 48 CEO exits, a substantial rise from 34 in 2023.

Reasons for Exits

Challenger tracks reasons for CEO exits based on the language in the announcement. The leading reason for CEO transitions year-to-date is “Stepped Down,” with 619 exits, including 68 in December. “No Reason Given” follows closely with 537 CEO exits, 41 of which occurred in December.

Retirement remains the third most common reason for CEO departures, accounting for 507 exits this year, with 62 occurring in December. “New Opportunity” was cited 170 times, with 22 exits in December.

Resignations were reported 143 times this year, including 19 in December. Additionally, 101 CEOs departed after their “Interim Period Over” this year, with 6 in December.

Less frequent but notable reasons include:

  • New Position Within Company: 34 departures year-to-date, 1 in December
  • Acquisition/Merger: 27 exits, including 4 in December
  • Personal Reasons: 21 exits, with 1 in December
  • Restructuring: 14 departures year-to-date
  • Death: 17 CEO exits, including 3 in December
  • Allegations of Professional Misconduct: 8 departures, with 1 in December
  • Differences With Board: 6 transitions
  • Terminated: 7 CEO exits, including 2 in December
  • Allegations of Sexual Misconduct: 3 transitions
  • Loss of Contract: 3 departures
  • Amid Financial Investigation, Growth Period, Bankruptcy, and Health: 1 departure each

# # #

 

Contact Colleen Madden Blumenfeld for more data or to set up an interview with SVP Andy Challenger.

Contact Challenger for Media Inquiries

 

 

Download Full Report with Tables