Global CEO Turnover Hits Record High in 2024 Amid Investor Pressure

The global CEO turnover rate reached an all-time high in 2024, with 202 CEOs leaving their roles, up 9% from the previous year. This surge in departures can be attributed to several factors, including investor activism, technological change, and retirements. According to Russell Reynolds Associates' 2024 Global CEO Turnover report, the technology sector experienced the highest turnover rate, with a record 40 tech CEOs leaving their posts, up 90% on 2023.



Investor activism played a significant role in driving out 27 CEOs last year, nearly treble the number in 2020. This increase in activist investor involvement led to higher expectations for performance and strategic change, directly impacting CEO turnover. The report also found that a record number of CEOs (43) departed after less than 36 months, indicating investor impatience for results.

The technology sector was particularly affected by the rapid pace of technological change, including the disruption caused by AI. This required leaders to drive through not just technological progress but also cultural, commercial, and organizational change. As a result, the tech CEO class of 2024 is clearly different from other sectors, with just 8% of incoming tech CEOs last year having previous CEO experience.



The need for agility has seen COO become the most important incubator for CEO talent across all sectors. An ability to think through how technological change can impact not just business models but people, culture, and supply chains has seen 21% of all incoming CEOs in 2024 coming from COO roles.

First-time CEOs accounted for 85% of incoming CEOs in 2024, partly due to a wave of CEO retirements and improved succession planning. Almost a third (30%) of departing CEOs decided to retire from the executive role entirely, contributing to the record-high turnover. This trend highlights the increasing scrutiny and pressure on CEOs from investors, policymakers, and other stakeholders.



The high number of first-time CEOs taking on leadership roles has several implications for corporate governance and succession planning. This trend may lead to a shift in corporate governance practices, with new leaders bringing fresh perspectives and innovative ideas. However, these new CEOs may also face challenges in navigating the complexities of the CEO role, which could impact the overall performance of the company.

In conclusion, the record-high CEO turnover in 2024 reflects the increasing influence of investor activism, technological change, and retirements. As the role of the CEO becomes more demanding and less appealing to repeat candidates, companies must invest in developing and grooming internal talent, as well as attracting and retaining high-potential external candidates. By doing so, they can ensure a smooth transition and continued success in the face of these challenges.