There seem to be very few chief executive officers like Warren Buffett who have run their companies for decades. Some founders, like Larry Ellison of Oracle, hang on for decades. However, the tenures of most CEOs last only a decade. When companies hit trouble, they can be replaced quickly. Kevin Johnson of Starbucks found out just how quickly when its board tired of his plans and brought back Howard Schultz, who has been CEO thrice before.
[in-text-ad]
According to employee benefits company Challenger, Gray & Christmas, CEO exits are at an all-time high. The number of changes at U.S. companies in April was up 3% from March and hit 123. In the first four months of the year, the figure was an all-time high for the period at 518.
Andrew Challenger, senior vice president of Challenger, Gray & Christmas, said, “Many companies are making changes at the top to address rising costs for both business and consumers.” However, several CEOs retired in April, while some moved on to other companies. Nevertheless, many were just pushed out.
In the period, the government/nonprofit sector had the most CEO exits at 77. It was followed closely by health care/products at 63 and technology at 42. There was no pattern across sectors. This makes the Challenger Gray observation the best available.
24/7 Wall St.If Challenger Gray is right, ballooning inflation and a possible recession will drive the CEO exit figures higher.
Take Charge of Your Retirement In Just A Few Minutes (Sponsor)
Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance—and SmartAsset’s simple quiz makes it easier than ever for you to connect with a vetted financial advisor.
Here’s how it works:
- Answer a Few Simple Questions. Tell us a bit about your goals and preferences—it only takes a few minutes!
- Get Matched with Vetted Advisors Our smart tool matches you with up to three pre-screened, vetted advisors who serve your area and are held to a fiduciary standard to act in your best interests. Click here to begin
- Choose Your Fit Review their profiles, schedule an introductory call (or meet in person), and select the advisor who feel is right for you.
Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.