[News] CEO Resignations Reportedly Hit Record High: Over 1,800 This Year

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According to a report from Yahoo Finance, from aviation giant Boeing to automotive powerhouse Stellantis and struggling chipmaker Intel, a wave of CEO departures has swept across global corporations. This year, over 1,800 CEOs worldwide have stepped down, setting a new record.

The report by Yahoo Finance notes that, citing data from global employment consulting firm Challenger, Gray & Christmas, more than 1,800 CEOs announced their resignations by October. This marks a 19% increase compared to over 1,500 in the same period in 2023 and is the highest number since CEO turnover tracking began in 2002.

On Monday (December 2), Intel announced that its CEO, Pat Gelsinger, retired, ending his nearly four-year tenure. Meanwhile, international automotive giant Stellantis saw its CEO, Carlos Tavares, abruptly announce his resignation on Sunday (December 1). The report noted that these leadership changes highlight the challenges faced by each company and reflect broader trends in the corporate world.

The report cited David Kass, a finance professor at the University of Maryland, who noted that boards of directors have become increasingly independent and are holding CEOs accountable for underperformance, whether measured by profits or stock prices. This growing pressure has contributed to a shortening of the average tenure of corporate CEOs.

Starbucks provides a clear example, as the report from Yahoo Finance notes. In August, the coffee chain announced it had recruited Chipotle Mexican Grill CEO Brian Niccol as its new chairman and CEO, replacing Laxman Narasimhan. Niccol’s leadership is expected to steer Starbucks back to profitability. Over the past five years, Chipotle’s stock price has soared nearly 300%, while Starbucks has experienced minimal growth in comparison.

The report also quoted Michael Farr, chief market strategist at Hightower Advisors, who emphasized that if a CEO lacks a clear and actionable plan to turn a company around, the board will replace them with someone who does.

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(Photo credit: Intel)