Chief executive officers have exited from U.S. companies in 2024 at a greater pace than ever before, with businesses increasingly opting to appoint interim leaders as replacements, according to global outplacement company Challenger, Gray & Christmas, Inc.
As of November, 1,991 CEOs have departed from their companies, “the highest total on record,” according to a Dec. 20 report from the company. “It has surpassed the previous record of 1,914 CEO exits that occurred in all of 2023. It is up 16% from the 1,710 exits that occurred during the same period last year.”
Amid a jump in executive departures, companies were found to be appointing more interim leaders. Last year, interim replacements for CEOs were at seven percent, this year it has gone up to 13 percent.
“The current landscape has a lot of uncertainty baked in, and companies are responding by putting temporary leaders in place. This can act as a trial run to see how the leader navigates current challenges,” Challenger, Gray & Christmas Senior Vice President Andrew Challenger said. “It’s much less disruptive to replace an interim head if things do not appear to be working out, not only the company and its employees, but also to analysts and shareholders.”
Entities in the government/non-profit sector saw the highest number of exits year-to-date at 438 departures, followed by health care/products, technology, entertainment/leisure, financial, services, and hospitals. […]
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