Published December 21, 2023
The number of CEO changes at U.S. companies surged 71% from 105 CEO exits in October to 180 in November. This marks an 89% increase from the 95 CEOs who left their posts 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.
Source: Challenger, Gray & Christmas, Inc.
So far this year, 1,710 CEOs have left their posts, a 51% increase from the 1,135 CEO changes during the same period in 2022. This total is already the highest on record, surpassing the previous record of 1,640 CEO exits for the entirety of 2019. The firm began tracking CEO exits in 2002.
“CEOs are leaving after weathering the pandemic, labor and supply chain issues, financial uncertainty, and changing government regulations. Many leaders are departing when their companies are in relatively stable waters, allowing for a normal succession plan to proceed. Others are battling burnout, while some companies, facing new technology and economic uncertainty, seek new leaders to usher in changes,” said Andrew Challenger, workplace expert and Senior Vice President of Challenger, Gray & Christmas, Inc.
Women CEOs
The rate of new CEOs who are women slightly fell in November to 28% (27.9%) from 29% (28.78%) through October. It remains higher than the 26% of new CEOs who were women during the same period in 2022. Meanwhile, the percentage of women CEOs leaving the top spot rose to 23% through November, up from 22% through October and from 19% during the corresponding period in 2022. 2023 is witnessing more new CEOs who are women than any previous year.
Where are CEO Exits Happening?
Government/Non-Profit led last month with 47 CEO exits, 45 of which occurred at Non-Profits. Non-Profits account for 315 of the 425 CEO exits that have occurred in the sector so far in 2023, a 48% increase from the 246 announced in the Government/Non-Profit sector through November of last year. This sector leads all industries in CEO turnover in 2023.
“The environment is challenging for Non-Profits as companies tighten their belts or narrow their giving targets. Arts Non-Profits have been particularly hard hit during and after the pandemic, as audiences are slower to return to live performances,” said Challenger.
The Health Care/Products sector has surpassed Technology as the second-highest industry for CEO exits this year, with 165, 28 of which occurred in November. This is a 56% increase from the 106 CEO exits in the Health Care/Products sector during the same period last year.
Technology follows with 153 CEO exits this year, up 21% from the 126 announced through November 2022.
Hospitals have announced 136 CEO changes, a 40% increase over the 97 CEO exits announced at hospitals during the same period last year.
Reasons for Exits
Companies most often do not disclose reasons for their CEOs’ departures, with 550 cases (32% of all CEO exits) this year, up from 23% through November of last year.
Another 357 CEOs have retired this year, accounting for 21% of all exits, down slightly from 25% by this point last year. Eighty-nine CEOs (5%) left for “new opportunities,” a slight decrease from the 7% who left for that reason through November 2022.
Fifty-four CEOs found new positions within their companies, usually heading another division or location within the umbrella company, while 290 (17%) of CEOs “stepped down” into other C-level, advisory, or Board roles. During the same period last year, 22% of CEOs “stepped down” into some sort of Board or advisory role within their organizations.
Source: Challenger, Gray & Christmas, Inc.
“Fewer companies are holding on to their previous leaders this year compared to last year, opting for a fresh perspective in the current environment,” said Challenger.
Ten CEOs left their posts due to allegations of professional misconduct this year, while two have left due to allegations of sexual misconduct.
“Though a fraction of CEOs are reportedly leaving their posts due to these allegations, we know the impact of the MeToo movement in 2017 led to the the high rate that year. As new policies to combat workplace misconduct were enacted and enforced and investigations were likely completed, we saw a spike in 2019. Now, as companies are implementing return-to-office mandates after the pandemic, we are witnessing a similar trend,” said Challenger.
Source: Challenger, Gray & Christmas, Inc.
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SVP Andy Challenger is available for interviews on the job market, economy, and job search process. Please contact Colleen Madden Blumenfeld for more information.
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