CEO Turnover Swells as Leaders Depart, Boards Seek Nimbleness

CEO turnover has increased 15% from a year ago as boards search for new leaders to shepherd companies through uncertainty and executives use the end of the fiscal year to step away, according to a new report.

Eight-hundred sixty chief executive officers left their post in the first four months of the year, up from 748 who exited during the same period last year, according to the Tuesday report from executive coaching firm Challenger, Gray & Christmas.

It marks the highest January through April exit total on record, the firm said in a press release. Notable departures include Rodney McMullen of The Kroger Co. and Stephen Gardner of Amtrak. Warren Buffett of Berkshire Hathaway also announced that he’d retire at year’s end.

“Some CEOs are choosing this time to step away—others are being asked to,” Andrew Challenger, a senior vice president at the firm, said in a statement. “Boards are looking for leaders who can navigate uncertainty and course-correct quickly.”

The departures spotlight succession planning and other internal governance issues as companies scramble to keep up with a regulatory and political landscape that often changes by the minute.

“As CEOs leave in growing numbers, many companies appear unprepared to fill these roles from their existing leadership bench or more worryingly, do not have a bench at all,” Challenger said.

Companies are increasingly using the second quarter for workforce planning, Challenger said. April saw a spike in exits, with 214 CEO departures, according to the firm. That’s 70% more than in the same month last year.

Older CEOs were more likely to step away so far this year, the firm found. The average age of departing CEOs rose to 63, up from 55 in the year-ago period.