CEOs Are Leaving At A Record Pace, Report Finds
Oct. 19. 2019
The rate of CEO turnover has reached a startling high this year, according to Challenger, Gray & Christmas, a global outplacement and business and executive coaching firm. According to its latest monthly
turnover report,
1,009 chief executives had stepped down by the end of August this year, up from 879 a year ago, and more even than in the previous record year, 2008, in the depths of the recession.
In the midst of the longest stretch of economic expansion in American history, this development is unexpected. [...]
In August, there were 159 CEO changes at U.S.-based companies, the highest monthly total on record, according to the report, and 28% higher than the 124 in July. In 2008, 992 CEOs announced their exits through August, 2% fewer than the current year-to-date total. Challenger tracks CEO changes at companies that have been in business for at least two years and have at least 10 employees.
[...]
There are many reasons CEOs are departing in such numbers, Challenger says. “It’s multifaceted.” He cites the slowdown in the economy and also the very long tenure of many CEOs during the longest expansion in American history. Many are simply ready for retirement. “There’s a proportion of the CEOs who are leaving because this is
a good time to get out on top, put into place a succession plan and be able to submit your legacy,” he says. Also, boards are reevaluating CEOs at companies that aren’t performing optimally.
The rate of CEO turnover has reached a startling high this year, according to global outplacement and business and executive coaching firm Challenger, Gray & Christmas.
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