There is an unprecedented CEO exodus.
In 2024, the number of CEO departures in the U.S. reached the highest level in over two decades, according to a report by global outplacement firm Challenger, Gray & Christmas, Inc. A total of 2,221 CEOs left their positions last year, marking a 16% increase from the previous record of 1,914 CEO exits in 2023. This marks a significant rise since the firm began tracking CEO transitions in 2002. Among the departures, 143 were from founders stepping down, a sharp rise from the 29 exits in 2023.
The report indicates that the government and nonprofit sectors led the charge in CEO exits, with 493 departures, while the healthcare and technology sectors each saw over 200 CEO departures. Other sectors, including entertainment, financial services, and leisure, each experienced more than 100 exits. Senior Vice President Andrew Challenger attributed these trends to ongoing economic, political, and regulatory uncertainty, as well as rapid technological advancements, particularly the growth of AI and automation, which placed greater pressure on CEOs to drive efficiency and productivity.
In addition to economic and technological factors, several other reasons contributed to the high number of CEO departures, including retirement, pursuing new opportunities, and resignations. Notable exits included Boeing CEO Dave Calhoun, who stepped down after regulatory scrutiny over safety issues, Intel’s Pat Gelsinger following declining revenues, and Nike’s John Donahoe amid a rough year for the company. Starbucks also saw a high-profile departure with Laxman Narasimhan, who left after just a year as CEO.
Despite these record departures, many executives maintain an optimistic outlook on the U.S. economy. A January survey from Vistage found a significant increase in CEO confidence, with over half of those surveyed expecting the economy to improve. This optimism was partly driven by expectations that pro-business policies, lower inflation, reduced regulations, and lower borrowing costs will stimulate growth. Similarly, a report from JP Morgan found that nearly two-thirds of middle-market executives were optimistic about the U.S. economy in 2024, with many expecting revenue growth and workforce expansion, even amid rising costs.
