July 29, 2024
(press release)
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Average Age of Exiting CEO Highest Since October 2021, as Companies Seem to Focus on Succession Planning The number of CEO changes at U.S. companies surged 97% to 234 in June from 119 in May. It is up 98% from 118 CEO exits recorded 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. Challenger, Gray & Christmas, Inc. © June’s total marks the fourth time this year that CEO exits were higher than the corresponding month a year earlier. So far this year, 1,101 CEOs have announced their departures, the highest year-to-date total on record. It is up 21% from 907 exits that occurred during the same period last year, which was the previous year-to-date record. In the second quarter, 479 CEO exits were recorded, down 23% from the 622 CEO exits in the first quarter. It is down 2% from 489 CEO exits recorded in the same quarter last year. “Leaders are anticipating a sea change as we enter the second half of this year, perhaps politically, but certainly technologically. New leadership is often necessary during periods of change,” said Andrew Challenger, Senior Vice President of Challenger, Gray & Christmas, Inc. Women CEOs “It continues to be a problem that the rate of women coming into the CEO role is falling. As companies begin to implement succession plans, women should be some of the leaders who are in the running for the top spot,” said Challenger. Where are CEO Exits Happening? Technology follows with 119 CEO exits this year, 26 in June. That is the highest monthly total since February, when 31 CEOs left their posts. February saw the most Technology CEO changes since January 2020, when 35 CEOs exited the top spot. This sector has announced 18% more CEO exits than the 101 exits recorded through June 2023. Healthcare/Products companies have announced 101 CEO exits this year. This is up 40% from the 72 CEO exits announced through the same period last year. Hospitals have announced 66 CEO exits this year, 16 of which occurred in June. Hospital CEO changes are down 19.5% from the 82 exits recorded through June 2023. Reasons for Exits The average age of exiting CEOs in June was 60, the highest average age since CEOs averaged 63 years of age when they left the CEO role in October 2021. Challenger, Gray & Christmas, Inc. © “Last month saw the highest average age for exiting CEOs since the Great Resignation, and nearly a third of them stepped down into an advisory or Board role, while a large number retired. This suggests normal succession plans were executed. Many companies are recognizing the need to prepare leaders well in advance of an exit to ensure smooth transitions,” said Challenger. # # # Contact Colleen Madden Blumenfeld for more data or to set up an interview with SVP Andy Challenger.
The rate of new CEOs who are women fell 0.6% to 28.1% in June, and down slightly from the 29% of new CEOs who were women during the same period last year. Women leaving the CEO role is 21.9% in 2024 compared to 21.8% during the same period in 2023.
Government/Non-Profit is leading all industries this year with 252 CEO exits, 47 of which occurred in June. Forty-five of them were in Non-Profits. This is up 13% from the 219 CEO exits in this sector during the same period last year.
Financial firms announced 10 CEO exits last month for a total of 59. This is down 12% from the 67 CEO exits recorded in the first half of 2023.
Companies most often stepped down into other C-level, advisory or Board roles in June with 73. For the year, 282 CEOs have stayed with their companies in a high-level role after leaving the CEO spot.
Another 60 did not disclose a reason, for a total of 307 for the year, while 53 CEOs retired last month. That is the highest number of retirees since 55 CEOs retired in February.
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