CEO departures hit record high by November amid business uncertainty
File photo shows an individual writing on a stack of papers with a pen. (AA Photo)
A record 1,991 U.S. chief executives departed from their positions in 2024 as of November, marking the highest number of CEO departures ever recorded within a single year, according to a report by Challenger, Gray & Christmas.
The executive coaching and outplacement firm attributes this trend to companies seeking temporary leadership to navigate an increasingly uncertain business landscape.
This highest figure since the firm began tracking such data in 2002, surpassing the previous record of 1,914 set in 2023. This tally includes leaders from publicly traded companies, privately held firms, non-profits, and government agencies.
“The current landscape is fraught with uncertainty, prompting organizations to appoint interim leaders. This approach allows companies to test how these leaders handle challenges before making permanent decisions,” said Andrew Challenger, senior vice president of Challenger, Gray & Christmas. “Replacing an interim leader is far less disruptive if things don’t work out—not just for the organization and its workforce but also for stakeholders and analysts.”
‘Stepping down’ tops departure reasons of CEOs
CEO turnover at publicly traded U.S. firms also reached unprecedented levels, with 327 departures recorded in the first 11 months of 2024—up from 300 in all of 2023. Prominent companies such as Boeing, Starbucks, and Nike also saw leadership changes this year.
Non-profit and government sectors led in CEO exits with 438 departures, followed by health care/products (230), technology (208), entertainment/leisure (139), finance (104), real estate (47), energy (43), and industrial goods (41).
CEO departures occurred for various reasons, as outlined below:
- Stepping down: 551 cases
- No stated reason: 496 cases
- Retirement: 445 cases
- Pursuing new opportunities: 148 cases
- Resignations: 124 cases
- Interim CEOs completing terms: 95 cases
- Professional misconduct allegations: Seven cases
- Sexual misconduct allegations: Three cases
Despite the turnover, there appears to be a declining appetite among executives for the corner office. At October’s Fortune COO Summit, many chief operating officers expressed reluctance to pursue CEO positions. The decreasing financial incentives for CEO roles, coupled with the growing rewards of other C-suite positions, are reshaping executive aspirations.
The tragic killing of UnitedHealthcare CEO Brian Thompson earlier this month has further underscored the risks associated with high-profile leadership roles. Jason Baumgarten, head of Spencer Stuart’s Global Board and CEO Practice, emphasized the need to restore the appeal of leadership.
“If we continually tear down those in leadership, fewer people will aspire to these roles,” he told business-focused Fortune. “Yet, society fundamentally needs effective leaders.”
