Record percentages of American CEOs are quitting their positions in 2023.
According to research from Challenger, Gray, and Christmas, the “Great Resignation” may be over, but for CEOs, it’s only getting started. The company discovered that, as of now in 2023, over 1,500 CEOs have departed from their positions—the greatest amount of departures since Challenger started keeping track of the data in 2002.
The increase in CEO turnover over the last several months can be attributed to at least four factors, according to Alexander Kirss, senior principal of research at Gartner. These include worries about the CEO’s poor performance, exhaustion, and a postponed retirement. Lastly, there are CEOs with excellent performance who are using this chance to advance to a more desirable position.
Businesses usually retain their CEOs to help them through unanticipated turbulent periods, like the Covid-19 pandemic. But the board of directors’ appetite for risk returns as the economy stabilizes. From there, the quest for new leadership begins.
The burden of running a business during the pandemic is now compounded for CEOs by challenges from growing geopolitical tensions, persistent inflation, and the potential for a recession. CEOs are not the only ones impacted by these trends; cost-cutting measures, hiring freezes, and layoffs can all have an impact on staff members at all levels.