CEOs of Major Companies Are Being Replaced at a Record Pace — Here’s the Reason Why
Warning to executives: Don’t get too comfortable in your corner office. Nearly one in nine CEOs was replaced last year, the highest rate since the financial crisis, and CFO turnover hit a seven-year high, according to new data from Russell Reynolds Associates.
The replacements are younger and greener. More than 80% of the 168 incoming CEOs were first-timers with no prior experience running public companies. Two-thirds have never served on a corporate board. Some companies that brought in new CEOs this year include Walmart, Procter & Gamble, Disney, PayPal, and HP.
What’s driving the shift? AI disruption, unraveling trade practices, and an unsettled economy are forcing boards to rethink leadership. But there’s also burnout. Retirements accounted for 60% of CFO departures, with many veterans opting for board work or advisory roles over grueling schedules.
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