Advisory firm Russell Reynolds Associates released data showing 202 chief executives left their roles last year, a nine per cent increase in turnover from 2023. The firm monitors CEO departures across 13 stock indices worldwide. The turnover rate was highest in the technology sector, up 90 per cent from 2023, with 40 departures last year. A record number of CEOs lasted fewer than three years on the job, which the report attributed to “signs of investor impatience for results.” (The Logic)
Talking points: There’s been a “wave” of CEO retirements, as almost one-third of those departing decided to retire from executive positions completely. According to the report, the retirements contributed to 85 per cent of incoming chief executives being first-timers in the role. “Compounded pressure on CEOs globally has exacerbated the need for adequate succession planning within firms,” Laura Sanderson, co-head at Russell Reynolds said. The report also addressed the growing presence of women in CEO roles, but concluded that it will take 72.5 years to achieve gender parity at the current rate of progress.