The number of CEOs who left their roles during the first quarter of 2023 is above where they were last year, according to a recent report from Challenger, Gray and Christmas.
CEO departures, particularly hospital CEOs, were on the rise through much of 2021 and 2022, with top executives taking part in the Great Resignation alongside millions of other works throughout the COVID-19 pandemic. However, CEO departures appeared to slow down in the second half of 2022 once economic conditions shifted, including higher interest rates, sky-high inflation and Russia’s illegal invasion in Ukraine. These economic headwinds raised fears of a recession and may have influenced more CEOs to remain in their roles.
According to the latest report, the number of CEO changes at U.S. companies fell 17% from 167 in February to 139 in March. Still, that’s 18% higher than March 2022, when 119 CEOs left their roles. In fact, March’s total is the highest total for that month since Challenger, Gray and Christmas began tracking CEO exits in 2002.
“Companies are undergoing a significant amount of change as they respond to economic challenges, higher costs and talent management issues,” Andrew Challenger, leadership expert and senior vice president of Challenger, Gray & Christmas, said in a statement.
Hospitals were once again among the top industries for CEO departures, second only to the government/nonprofit sector. Fifty-four hospital CEOs left their roles during the first three months of the year, up 86% from the 29 departures that were announced during the same three-month period through March of 2022. By comparison, there were 85 departures in the same period for the government/nonprofit sector, down from 90 departures announced in 2022.
Overall, there were 418 CEOs across industries who left their roles during the first three months of 2023. That’s the second-highest rate of exits in a single quarter since 441 left their roles during the first quarter of 2020.
More companies did not cite their reasons for CEO exits compared to last year.
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."