While CEO turnover rates across all industries rose by 17% from August to September, hospitals reported a decrease, according to a CEO Turnover Report from executive outplacement firm Challenger, Gray & Christmas.

CEO exits rise 17% in September

In September, the number of CEO departures at U.S. companies increased by 17%, rising from 63 in August to 74 in September.

Through the third quarter, 969 CEOs left their roles in 2022—a 2% decrease from the 991 CEOs who left through the same period in 2021.

During Q3 2022, there were 195 CEO exits across all industries. While overall CEO departures remained largely unchanged, the third quarter saw the lowest turnover rate since Q4 2004, which saw just 147 departures. Notably, turnover rates in third quarter were 49% lower than the second quarter of 2022—which had 379 CEO changes—and 44% lower than Q3 2021.

So far, 232 CEOs have stepped down from their roles in 2022, typically transitioning to serve as a chair or advisor to the new CEO. In addition, 229 retired, 70 left for new roles, and 61 resigned.

On average, the age of departing CEOs is 56—a decrease from 60 in 2021. According to the report, this year has the youngest group of exiting CEOs since Challenger began tracking ages in 2010—other than in 2020, which brought a unique set of circumstances.

"The last year has seen a complete revamping of the labor market. Many workers are choosing not to re-enter for a multitude of reasons, chief among them being lifestyle changes and early retirements. Those who can, are in many cases deciding they want to pursue their own interests instead of a traditional job. That's certainly a possibility as we see younger CEOs leaving their posts," said Andrew Challenger, job market expert and SVP of Challenger, Gray & Christmas.

Hospital CEO turnover rates decline

While overall CEO turnover rates increased in September, the number of hospital CEOs who left their positions in September decreased. Compared with 11 departures in September 2021, there were just five reported departures in September 2022—an over 50% decrease.

Though we're currently seeing a decline in departures, workers across the health care industry are still experiencing high levels of burnout—and hospital CEOs are no exception.

"Hospitals continue to be hammered on the labor front. The staff shortages, access-to-care concerns, legal issues, and resource management issues continue to create challenges for hospital leadership, and leaders themselves are not immune from the burnout felt at all levels," Challenger said in the August 2022 report. 

Through the third quarter of 2022, 82 hospital CEOs have either retired, quit, or left their position for new opportunities. In 2021, only 79 hospital CEOs changed positions between January and September.

As the end of 2022 nears, total hospital CEO exits for 2022 could surpass the 101 departures in 2020 and the 112 departures in 2021. (Challenger, Gray & Christmas news release, 10/26; September 2022 CEO Turnover Report, 10/26; Blackman, HealthLeaders, 10/28)