CEO departures hit 21-year high in May

According to the report, 224 CEOs left their positions in May, up 52% from 147 in April and up 49% from the 150 CEOs who left their positions in May 2022.

The report also notes that May's total is the highest number of CEO departures in a single month since Challenger, Gray, & Christmas began tracking CEO exits in 2002.

The government/non-profit sector saw the most CEO departures in May with 58 followed by the technology sector at 21. The healthcare/products sector and the hospitals sector were tied for the third-most CEO departures in May at 18.

In 2023 so far, the hospitals sector has seen the third -most total CEO departures with 80 and the healthcare/products sector has seen the fourth -most with 63.

Why are CEOs leaving?

Andrew Challenger, SVP of Challenger, Gray, & Christmas, shared his analysis of 2023 CEO departures.

"It is certainly significant that so many CEOs are leaving, especially since the last time we saw numbers this high was just prior to Covid-19 lockdowns," he said. "Certainly, companies are dealing with some uncertainty heading into the second half of the year surrounding recession concerns, disruptive technology, and high interest rates."

Specifically, Challenger noted that hospital systems "are struggling in a number of areas post-pandemic. Talent shortages, retention, and wages for staff are an issue, while cost of care is rising. Many systems are struggling to operate, and new leadership is needed to attempt to turn things around."

According to the report, many companies are not providing reasons for their CEOs' departures, but some include retiring or leaving amid misconduct allegations. (Challenger, Gray, & Christmas report, 6/22)

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