American CEOs will leave their positions in record numbers in 2023.
Although the “big quit” may be over, it's just beginning for CEOs, according to research from Business Insider. Challenger, Gray and Christmas. The company found that more than 1,500 CEOs have left their positions so far in 2023, representing the largest number of departures since Challenger began tracking the data in 2002.
“There are at least four reasons why CEO turnover has increased over the past few months,” said Alexander Kearse, senior research director at Gartner. “This may lead to delayed CEO retirement, CEO burnout, and concerns about poor CEO performance. And finally, high-performing CEOs who seize this opportunity to move up to a more attractive level.”
During times of unexpected volatility like the COVID-19 pandemic, companies typically retain their CEOs to help tide them over. However, when the economic environment returns to normal, the board's appetite for risk returns. From here begins the search for new leadership.
For CEOs, the stress of heading a company during a pandemic is now compounded by headwinds from rising geopolitical tensions, persistent inflation and the possibility of recession. These trends not only affect CEOs, but can also lead to cost cuts, hiring freezes and layoffs – all of which affect employees at all levels.
Watch the video above to learn more about why America's CEOs are leaving their positions and what these changes might mean for employees at every level.
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