CEO turnover is up, and boards are favoring experienced insiders who can hit the ground running
CEO turnover is increasing, with a notable rise in the hiring of experienced insiders. This trend reflects a preference for leaders who can quickly adapt and drive change within organizations. The average tenure of departing CEOs has also lengthened, indicating a shift in leadership dynamics.
- ▪41% of incoming CEOs in the S&P 500 this quarter had prior experience running public companies, up from 25% last year.
- ▪Departing CEOs held their positions for an average of 11.8 years, compared to 8.3 years the previous year.
- ▪Boards are increasingly favoring leaders who can hit the ground running, particularly those with prior board experience.
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In today’s CEO Daily: Diane Brady digs into the data behind recent chief executive churn. The big leadership story: GM’s hefty tariff refund is only part of the story. The markets: Mixed globally as Wall Street awaits Magnificent 7 earnings Plus: All the news and watercooler chat from Fortune. Good morning. You’re not imagining it: CEO turnover is up, and 41% of the 22 incoming CEOs in the S&P 500 this quarter had prior experience running public companies, up from 25% in Q1 last year. And the trend of hiring experienced insiders, which we recently noted in this column, is validated in Russell Reynolds’ latest Global CEO Turnover Index. The CEOs who left were also in those roles longer—11.8 years, on average, vs. 8.3 years last year—and it’s taking longer to fill those roles.
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