May saw the highest CEO turnover rate in decades
The number of CEO changes in the United States hit its highest total on record in decades in May, climbing 49% higher than the same month just one year ago.
The first five months of 2023 have brought big shake-ups in executive suites, with 789 CEOs leaving their posts since the beginning of the year. In May alone, 224 either changed positions or left their company completely—that’s up 52% from the 147 changes recorded in April of this year.
These figures were presented this week by Challenger, Gray and Christmas Inc., a global outplacement and business and executive coaching firm that regularly offers detailed insights into today’s job market. According to their latest report, 2023’s CEO turnover figures are the highest on record since 2002 and have surpassed the peaks seen during the height of COVID.
“It is certainly significant that so many CEOs are leaving, especially since the last time we saw numbers this high was just prior to COVID-19 lockdowns. Certainly, companies are dealing with some uncertainty heading into the second half of the year surrounding recession concerns, disruptive technology, and high interest rates,” said Andrew Challenger, workplace expert and senior vice president of Challenger, Gray and Christmas.
The government and nonprofit sector saw the most CEO changes in May, with 58 exits reported during the month, bringing the total for the year so far to 152; that figure is up 18% from the same time period in 2022.
The technology sector recorded the next highest total as 21 CEOs changed jobs in May. Tech has seen 91 CEO exits for the year—a 44% increase from the same period in 2022—and the majority of layoffs in the U.S. have come from the industry.
Healthcare followed close behind the technology sector. Since January, the healthcare/products and hospitals industry has announced 80 CEO changes, up 70% from the same time last year. These exits are especially consequential for this industry, Challenger noted, as many are still seeking balance.
“Hospital systems are struggling in a number of areas post-pandemic. Talent shortages, retention and wages for staff are an issue, while cost of care is rising,” Challenger said. “Many systems are struggling to operate, and new leadership is needed to attempt to turn things around.”
As for the reasons behind the sudden onslaught of exits, many companies are not providing context, though CEO retirement has increased by approximately 17% this year and accounts for 182 of the position changes so far in 2023.
In addition to her background in journalism, Hannah also has patient-facing experience in clinical settings, having spent more than 12 years working as a registered rad tech. She began covering the medical imaging industry for Innovate Healthcare in 2021.