Why American CEOs quit in record numbers during 2023
- American CEOs are leaving their posts in record numbers in 2023.
While the “Great Resignation” may be over, it’s just beginning for CEOs, according to research by Challenger, Gray and Christmas. The firm found that more than 1,500 CEOs have left their posts so far in 2023, marking the highest number of departures since Challenger began tracking the data in 2002.
“There are at least four reasons why we’ve seen an uptick in CEO turnover over the past few months,” said Alexander Kirss, senior principal of research at Gartner. “Those would be delayed CEO retirement, CEO burnout, concerns about CEO underperformance. And then finally, high-performing CEOs who are taking this opportunity to level up to a more attractive opportunity.“
During times of unforeseen volatility such as the Covid-19 pandemic, companies typically keep their CEOs to help navigate through those times. However, when the economic environment normalizes, the board of directors’ appetite for risks returns. The search for new leadership begins from there.
For CEOs, the stress from heading a company during the pandemic is now exacerbated by headwinds from rising geopolitical tensions, lingering inflation and the possibility of a recession. These trends not only affect CEOs, but they can also lead to cost cutting, hiring freezes and layoffs — all of which affect employees at every level.
