The development of high-potential internal candidates for C-suite jobs takes years to expose them to more expansive and challenging opportunities writes Farient’s Angela Moe and Brian Bueno in a Directorship magazine article. CEO departures are occurring at record-high levels, adding new urgency to get succession planning right.
In the United States, 622 CEOs announced their departures in the first quarter of 2024, representing a 48 percent increase from the first quarter of 2023 and the highest number of single-quarter departures ever, according to Challenger, Gray & Christmas’s CEO Turnover Report.
The reasons for the increased departures are varied. Still, economic uncertainty, the pace of technological advancements, and
shareholders’ rising performance expectations are likely contributing to the current level of CEO churn. Some argue that the current election year also contributes to an environment where transitions may seem well-timed as markets prepare for a potentially different regulatory regime. Identifying, developing, and engaging the next generation of leaders in this increasingly complicated environment is critical to ensuring organizational success through leadership transitions.