The number of CEO changes at U.S. companies jumped in February 2023, reaching the highest point since January 2020, according to a March 29 report from Challenger, Gray & Christmas, Inc.
In total, 167 CEOs left their positions in February, up 49% from 112 in January and up 11% from 151 in February 2022. The last record was set in January 2020, with 219 CEO turnovers.
So far this year, 279 CEOs have left their posts, which is similar to the 276 who left during the first two months of last year.
“The jump in CEO exits in February suggests companies are gearing up for a lot of change in the coming months,” Andrew Challenger, leadership expert and senior vice president of Challenger, Gray & Christmas, Inc., said in the statement.
Notably, the technology sector announced 15 exits amid layoffs. In 2023, 32 technology CEOs have left their posts, up 19% from the 27 exits in the first two months last year.
Among the reasons for leaving, 68 CEOs said they were retiring, which is similar to the 65 CEOs who did the same in 2022. Another 47 stepped down, typically into a board or C-level role. About 16 found new positions within their companies, 10 had interim terms that ended, and four were terminated from their positions.
At the same time, more women have taken the role of CEO — with an all-time high of 31% of new CEOs being women. In 2022, 26% of new CEOs were women, up from 23% in 2020 and 22% in 2019.
A higher rate of women are leaving the CEO role, with 22% of exits in 2023 being women, which is up from 17% in January and February 2022. Even still, the percentage is lower than 31% of incoming CEOs who are women.
“More women coming into the top role than leaving is a great sign for businesses, as that number inches closer to 50%,” Challenger said. “It’s still far from equitable, but companies committed to diversity, equity, inclusion and belonging, and we’re starting to see it unfold at the top.”
With the high rate of CEO turnovers, companies will likely need to focus on change management across the organization, as well as employee feedback, according to recent reports shared with HR Dive. Employees are interested in clear communication, real-time feedback, and adaptable workflows.
In 2023, company leaders will also need to address recession concerns and boost recruitment and retention through upskilling, flexible work arrangements and compensation considerations.
