Record Number of CEOs Depart in 2024 Amidst Market Scrutiny
A record number of global company CEOs resigned in 2024, fueled by investor scrutiny and the demand for transformative leadership.
According to Russell Reynolds Associates, 202 CEOs vacated their positions last year, a significant increase from the six-year average of 186 and a 13% rise compared to 2023.
Technology emerged as the sector with the highest CEO turnover, with 40 departures – a 50% increase over the six-year average. Russell Reynolds has been tracking CEO turnover since 2018.
Margot McShane, co-lead of Russell Reynolds' global board and CEO practice, noted that companies are seeking executives who can execute change plans but often lack a clear roadmap.
"The challenges of being a CEO are escalating, as leaders navigate uncharted territory," McShane said.
The report highlights that this pressure is particularly acute in the technology sector, where advancements like generative AI are disrupting the industry.
Activist investors played a prominent role, driving out 27 CEOs in 2024, nearly triple the number in 2020, as per Barclays data cited by Russell Reynolds.
Planned succession processes accounted for almost a quarter of the 2024 departures, another record-breaking trend.
"Boards are anticipating future needs and nurturing internal talent," said Helle Bank Jorgensen, founder of Competent Boards, a corporate advisory firm.