December 27, 2024 – A report released by Challenger Gray, a US-based human resources consulting firm, revealed that the number of CEO departures in American companies has hit a record high this year.
According to the data, as of November, a total of 1,991 CEOs have left their positions in 2024, surpassing the previous record of 1,914 departures set in 2023. This figure also represents a 16% increase compared to the 1,710 departures during the same period last year.
The report further noted a growing preference among American companies for appointing interim leaders. While the proportion of interim CEOs stood at 7% in 2023, it has risen to 13% this year. “Given the current uncertainties, companies are responding by appointing interim leaders. This serves as a trial to observe how these leaders navigate the present challenges,” the report stated.
Among the departed CEOs, the government and non-profit sectors witnessed the highest number of departures, with 438 leaving their positions so far this year, up from 425 last year. This was followed by industries such as healthcare products, technology, entertainment and leisure, finance, services, and hospitals.
Notably, the technology industry in the US has seen a significant increase in CEO departures. So far this year, 208 CEOs have left their roles in the tech sector, compared to 153 in 2023.
In terms of regions, California led the way with 223 CEO departures, followed by New York, Texas, and Florida.
The primary reason for CEO departures this year has been “Stepped Down,” with 551 individuals leaving for this reason. Additionally, 496 CEOs departed with “No Reason Given,” and 445 retired from their positions.
One of the most significant CEO departures this year was the retirement of Intel’s CEO, Gelsinger, after a four-year tenure. Furthermore, Boeing’s CEO Dave Calhoun resigned due to aircraft safety issues.
