Chief executives of global companies left their jobs in record numbers last year, pushed by intense scrutiny from investors and pressure to keep up with change, according to leadership advisory firm Russell Reynolds Associates.
Some 202 CEOs left their posts in 2024, surpassing the six-year average of 186 and a 13% increase over the previous year, Russell Reynolds said in a report released late on Tuesday.
Among sectors, technology stood out with 40 CEOs leaving their jobs, 50% more turnover than the six-year average, it said. The firm started tracking CEO turnover in 2018.
Margot McShane, co-lead of Russell Reynolds’ global board and CEO practice, said during CEO searches companies now increasingly asked for executives who could execute on their plans to change, but often did not have clarity on how to bring that about.
“It is only getting harder to be a CEO, where you’re navigating uncharted territory,” McShane said.
Some of these pressures are particularly high in technology, where the sector is experiencing profound change due to developments such as generative AI, the report said.
Activist investors have played a major role. They drove out 27 CEOs last year, nearly treble the number in 2020, the firm said, citing Barclays data.
Almost a quarter of the 2024 departures resulted from planned succession processes, which represented another record, the report said.
“Boards are looking ahead, grooming internal talent,” said Helle Bank Jorgensen, founder of corporate advisory firm Competent Boards.
(Reporting by Isla Binnie; Editing by Chris Reese)
