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Although CEO exits are slowly declining, the number of departures continues to be higher than in previous years, particularly in the healthcare industry, according to a new report from global outplacement and business and executive coaching firm Challenger, Gray & Christmas.
CEO departures declined 17% in March, but remain high
In March, there were 139 CEO exits, a 17% decrease from the 167 exits in February. However, compared to March 2022, exits were up 18% from the 119 CEOs who left their position during that time.
Through the first quarter of 2023, there were a total of 418 CEO exits, up 6% from the 395 exits in Q1 of 2022. According to the report, this is the highest first quarter total 2020, which saw 441 CEO exits.
So far this year, the top three sectors for CEO changes have been government and nonprofits (85 exits), hospitals (54), and technology (50). The number of hospital CEOs leaving their positions has increased by 86% compared to the 29 exits in Q1 of 2022.
However, even with a significant increase in hospital CEO exits year over year, the number of departures has slowly declined each month. In January, there were 23 hospital CEO exits, which decreased to 18 in February, and then 13 in March.
In the healthcare/products industry, there have been 21 CEO exits through March. The pharmaceutical industry saw eight exits during the same period.
According to the report, many companies are not providing reasons for their CEOs' departures, but some include retiring, moving to a different position in the company, interim CEO periods ending, or joining a new organization.
"Companies are undergoing a significant amount of change as they respond to economic challenges, higher costs, and talent management issues," said Andrew Challenger, leadership expert and SVP of Challenger, Gray & Christmas. (Challenger, Gray & Christmas March 2023 CEO Turnover Report, 4/18; Blackman, HealthLeaders, 4/19; Gooch, Becker's Hospital Review, 4/18)
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