Why CEOs Are Quitting In Record Numbers In 2023

American CEOs are leaving their posts in record numbers in 2023.

While the "Great Resignation" may be over, it's just beginning for CEOs, according to research by Challenger, Gray and Christmas. The firm found that more than 1,500 CEOs have left their posts so far in 2023, marking the highest number of departures since Challenger began tracking the data in 2002.

"There are at least four reasons why we've seen an uptick in CEO turnover over the past few months," said Alexander Kirss, senior principal of research at Gartner. "Those would be delayed CEO retirement, CEO burnout, concerns about CEO underperformance. And then finally, high-performing CEOs who are taking this opportunity to level up to a more attractive opportunity."

During times of unforeseen volatility such as the Covid-19 pandemic, companies typically keep their CEOs to help navigate through those times. However, when the economic environment normalizes, the board of directors' appetite for risks returns. The search for new leadership begins from there.

For CEOs, the stress from heading a company during the pandemic is now exacerbated by headwinds from rising geopolitical tensions, lingering inflation and the possibility of a recession.

These trends not only affect CEOs, but they can also lead to cost cutting, hiring freezes and layoffs — all of which affect employees at every level.

Watch the video above to find out more about why American CEOs are leaving their posts and what these changes could mean for employees at every level.

Chapters:
0:00 Introduction
1:34 Ch 1. The great CEO resignation
4:04 Ch. 2. Employee impact
6:44 Ch. 3. What’s next?

Produced and Edited by: DeLon Thornton
Graphics by: Mallory Brangan
Supervising Producer: Jeff Morganteen
Additional Footage: Getty Images

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Why CEOs Are Quitting In Record Numbers In 2023

[SummerSausage]

they aren't quitting. they're being fired. most ceo's that were fired pretended to resign. it's common policy to let top officials resign in disgrace than to be fired.

[adammorra]

I am in HR. The company I work for, the CEO was forced out. But of course, it was communicated the CEO has retired/left for “other opportunities”/etc. The reality is most of these CEO’s are fired.

[ET]

in my opinion they are not quitting fast enough and big enough numbers...useless CEOs, CTOs and other overpaid incompetent idiots with overinflated egos are everywhere in the largest companies in S&P 500 & FTS 100

[momo.ru-kun]

No, they're jumping off ship before the ship capsizes. If you have massive resignations from employees, as well as job cuts, then it only follows that the company is not doing well. And, if you are the CEO, then your given a bad hand, so before it sinks they take whatever they can and run. I've seen this personally from the company I left.

[JJ-elvv]

Who feels sorry for them
Perhaps they're quitting bc they've taken all they may take from stock/company

[profdc]

How to be a CEO: Create an initiative with a fancy new name, like "artificial inferential paradigm." Take every management trend and deploy it under the initiative. Every success you attribute to the initiative, and every failure you attribute to your predecessor or anomalous events. Release a balance sheet that attributes all of the black ink to your initiative, and all the red ink to one-off charges. Done!

[djelliott]

Fun fact. Ceo's in the 80s made 20 percent more than their employees on avg. A new reports shows now they make 200 percent more than their employees on avg. Smh

[johnrobberts]

they aren’t resigning. they are cashing out.

[happyfunjenn]

I'm sorry but American Wages for nearly everyone have been stagnant for decades meanwhile CEO's have been seeing steady raises that whole time? I can't imagine where all the money went or why I can't pay my bills anymore. LET THEM QUIT! When they come crawling back, pay them less than half what they've been making and distribute the rest to the workers!

[misterfunnybones]

They've bolstered their retirement portfolio with years of stock buybacks & it's time to cash out & spend some time in their multiple homes & the yacht.

[WrknEdits]

5:48 "Employees have a unique connection to their CEO" No, no they don't. Not in a Fortune 500 or arguably 1000 company. The CEO on paper, leads organizations to carry out the strategy and create value (should*); the board of directors provides direction and oversight to protect shareholders (Make money for shareholders) and broader stakeholder interests (anyone else who invests and makes money off the company). The CEO may take credit for strategy and "leadership", but that only works when the profits are coming in and are up. As others have mentioned, once the money stops flowing, or there is a reputation hit to the company and there is a need for a scapegoat, the CEO is often fired (resigns/retires). The game seems to be to get the large salary and get the resume buffed up for the next position in the "C" suite. It is an outdated and often superfluous position. If the CEO was that critical, once that person left, the company would cease to function.

[RevengerReloaded]

It's hard for me to feel sorry for a company hiring a new CEO for millions a year and calling it a "difficult" time. CEO's don't NEED to make that much money.

[kirmie]

Maybe the companies will realize they dont have to pay a CEO that much and promoting internally will probably work out better

[amostofi]

They are jumping off the train before the train wreck. They don't want to be in charge when things blow up.

I want to be a CEO for just one year if I'm getting paid millions then I'd quit and retire. These CEOs make more in a year than what regular workers make in their lifetime.

[u.s.a.]

Around age 45 I lost interest in the BS working in an office and the stupidness I encountered daily.
10 years later I never looked back. Worked alot of different jobs since then. Give me $15 a hour and some friendly people to work with.... This isn't hard and makes me happier !
I knew it was time to leave the office environment when I thought to myself "If I hear one more acronym I'm peeing on someone's feet" !

[MichaelLloydMobile]

Sounds like the high cost of replacing a CEO is a systemic problem, where the people at the top are being paid way too much.

Perhaps if the people at the top weren't paid many times more than the average worker this problem would be resolved.
Sounds like a them problem.

[GooseCee]

Wow I feel so bad for them 😭 can we start a go fund me for these poor ceo's?

[jonsmith]

If I had a golden parachute I might resign too.

[TommyDangs]

I’ve seen what alot CEOs are and honestly a lot of companies are probably better off without one