CEO departures see slight rise in April

In April, there were 147 CEO departures, a 6% increase from the 139 CEOs who left their positions in March. Compared to the same time last year, there were 20% more CEO departures this April.

So far, there have been 565 CEO departures in 2023, a 9% increase from the 518 CEOs who left their positions during the same time last year. Overall, this is the highest number of CEO departures for January through April on record.

There were eight hospital CEO exits in April, adding to a total of 62 exits so far this year. According to the report, this is a 72% increase from the 36 hospital CEOs who left their positions during the same period last year.

There were 24 CEO exits in the healthcare/products industry in April, creating a total of 45 exits so far this year. There have been nine CEO departures in the pharmaceutical industry so far this year, with April adding one CEO exit to that total.  

In general, most companies are not providing reasons for their CEOs' departures. However, some are either retiring or finding new positions within their companies, either in another department or at a company within the company hierarchy.

"It could be that CEOs are leaving for so many reasons — whether because the Board is going in a new direction, or due to the economic headwinds or implications of new technology — that companies are instead focusing on their incoming leaders rather than giving reasons for their departing CEOs," said Andrew Challenger, leadership expert and SVP of Challenger, Gray & Christmas.

Overall, "[c]ompanies have a lot to consider as we head to the second half of the year, as recession and inflation concerns continue," Challenger said. "Many sectors are letting go of workers, and new technologies, like [artificial intelligence] AI, are forcing conversations about use cases. This environment is conducive to new leadership."

Will AI take over the CEO role?

Mobeon, an event and virtual production studio, in March announced that Chinggis Tron, an AI system based on ChatGPT, would become its new CEO. Mark Almares, the company's former CEO, plans to work closely with the AI going forward.

"We are excited to welcome Chinggis Tron as our new CEO," Almares said. "This revolutionary decision will help Mobeon stay ahead in a rapidly changing digital landscape, and we are confident that our AI-driven leadership will position us for unprecedented success. As a strategic advisor, I look forward to working closely with Chinggis to ensure our company's continued growth and innovation."

According to the report, this is the first time a company has announced a non-human CEO.

"There's no doubt with the rate at which AI is learning and evolving, many of the tasks of millions of American workers will be improved using it, increasing productivity and efficiency," Challenger said. "Perhaps, someday it could climb the leadership ranks, as well." (Gooch, Becker's Hospital Review, 5/18; Challenger, Gray & Christmas CEO Turnover Report, 5/18; Mobeon, PR Newswire, 3/28)

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