Healthcare CEO turnover surges in November as leaders retire
Healthcare CEO turnover surged in the final months of 2022, indicating that the disruptive labor challenges that have defined this year may not be over.
Across all industries, CEO turnover increased 34% in November compared to the previous month, from 71 in October to 95 in November, according to the latest data from global outplacement and business and executive coaching firm Challenger, Gray & Christmas. While November saw a big uptick in turnover, the rate is actually 3% below November 2021’s 98 CEO who left their roles.
One big change in November 2022 was the number of CEOs who left their roles citing retirement––37 left their roles to retire. That is the second-highest number of retirements since 49 CEOs retired in January 2020. The number of CEOs retiring has, on average, declined over the past few years, from 32 per month in 2019 to 24 per month in 2020, then up to 28 per month in 2021. Currently, an average of 26 CEOs are retiring per month, putting November 2022 squarely above the normal range. Overall, retirement is the leading cause of CEO exits this year, with 286. Another 256 CEOs stepped into other roles within their companies, such as chair, board or another C-suite position, while 82 have left for new opportunities.
The findings come at a time when the healthcare industry is facing a significant labor crunch, with one study showing 25% of clinicians want to switch careers thanks largely due to burnout. The majority of healthcare executives are burned out, too, with many interested in leaving the industry. The November numbers indicate that the ongoing labor challenges in the health sector will likely spread into 2023.
“We may begin to see large numbers of CEO changes as we enter 2023 amid an economic downturn. Companies are shoring up succession plans to enter the storm,” Andrew Challenger, senior vice president of Challenger, Gray & Christmas, said in a statement.
This year, healthcare companies and the healthcare products sector have announced 106 CEO exits, while hospitals have announced 97 CEO changes, the report found.
The November data also comes as the healthcare industry recently leveled off in CEO turnover for a few months after experiencing a rapid rate of departures earlier this year. For instance, the number of CEO exits began to steady in late summer and turnovers fell 4% from September to October.
The healthcare industry has the third most CEO turnovers this year so far, behind the government/non-profit sector and the technology sector.
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."