Record CEO Exodus in Early 2025

Causes, Trends, and What It Means for Businesses

Jul 02, 2025

Hi, it’s David Lambert, and welcome to The Business Growth Blueprint, my weekly newsletter where I delve into the critical elements of business growth—strategy, leadership, operations, and the technologies shaping tomorrow. Subscribe to join 2,250+ readers who get The Business Growth Blueprint delivered to their inbox every week.

Introduction

Let me guess, you opened LinkedIn this morning and thought, “Is everyone stepping down, or did I miss the memo?” You’re not alone. In the first six months of 2025, so many CEOs have exited that it’s starting to feel like the C-suite version of musical chairs, only no one is in a hurry to sit back down.

I’ve been watching this mass migration with interest and a raised eyebrow. Are these CEOs burned out? Bored? Getting poached by AI startups offering kombucha stock options? Or is this just the natural result of economic stress, political change, and a few too many “urgent” board meetings?

In this week’s Business Growth Blueprint, I unpack the record-breaking CEO turnover that’s defined early 2025. I’ll explore why so many leaders are bailing, what it means for the rest of us, and how companies can turn the chaos into a competitive advantage.

From retirements and burnout to boardroom oustings and billion-dollar reshuffles, it’s a leadership shake-up worth understanding, especially if you’re leading, investing, or just quietly wondering if your boss is next.

So grab your coffee (or something stronger), and let’s dive in. While CEOs may be stepping down, this newsletter is here to stay, so subscribe - it’s free!

A Record Wave of CEO Departures

In the first four months of 2025, U.S. companies saw an unprecedented wave of CEO turnover. A total of 1,028 chief executives left their posts between January and May, 19% more than the same period in 2024 and the highest January–May total on record.

This surge follows a record-breaking 2024 and a frenzied start to 2025. January alone saw 222 CEO exits, the most ever recorded in that month. February was not far behind with 247 departures, virtually matching the all-time one-month high set in Feb 2024.

Turnover eased in March (177 exits) but spiked again in April to 214, a 70% jump from April 2024. In May, departures moderated slightly to 168, although they remained a substantial 41% higher than in May 2024.

June data hasn’t been officially released yet, but if trends hold close to last June’s 234 exits, the first half of 2025 would surpass 1,260 CEO departures, easily eclipsing the previous record of 1,101 in H1 2024. In short, 2025’s “CEO exodus” is in full swing, and it has corporate boards, investors, and stakeholders taking notice.

Why does this matter? Such elevated churn at the top is historically unusual and speaks to the turbulent environment companies are navigating. Challenger, Gray & Christmas, which has tracked CEO changes since 2002, notes that the current rate of departures remains historically high despite month-to-month fluctuations.

With more CEOs leaving in early 2025 than ever before, the trend is making headlines and raising questions about stability and strategy in C-suites across the United States.

What’s Driving the Surge? Key Trends Behind the Turnover

Multiple converging factors are fueling this record CEO turnover. Company announcements reveal that many CEOs are “stepping down” or retiring, often after long tenures. “Stepped down” has been the single most cited reason for CEO exits in 2025, indicating the individual is usually staying on in some capacity (e.g., as a board member or advisor).

The second most common reason is “retired,” as a wave of seasoned leaders opt to leave; the average age of departing CEOs jumped to 63 this year (up from 55 the previous year). *Note: The average age of a CEO in the U.S. is ~56 years old

In January 2025, 28% of CEO departures were due to retirement, reflecting a demographic trend in which aging executives decide it’s time to pass the baton. As one expert put it, “many of these CEOs are taking the opportunity to leave” amid a generational shift in leadership.

Economic and political uncertainty is another major driver. Boards appear to be reacting to a “barrage of indicators” of difficult times ahead, including falling consumer confidence, tariff impacts, and rising prices.

With fears of slow growth and even a credit crunch in the air, companies want leaders who can pivot quickly. “Some CEOs are choosing this time to step away, others are being asked to,” observes Andrew Challenger of Challenger, Gray & Christmas, noting that boards are looking for leaders who can navigate uncertainty and course-correct quickly.

In some cases, directors (under pressure from activist investors) are showing less patience for underperformance and are quicker to oust CEOs who aren’t delivering results. At one point in 2024, nearly 40% of departing CEOs were forced out by their boards, a pressure that is continuing into 2025.

The broader context is that each of the past few years has presented unprecedented challenges to CEOs, stemming from the pandemic and its aftermath, labor upheavals (“Great Resignation”), inflation, and now major shifts in U.S. government policy.

One leadership advisor described it as “a generational transition of leadership” under extraordinary stressors. Facing this environment, some veteran CEOs are bowing out due to burnout and personal considerations. A recent survey found 71% of CEOs feel at least occasionally burned out, and 32% report frequent or near-daily burnout.

The top job has “never been easy, but the job is a lot harder now,” says Jane Stevenson, a global CEO succession expert. In 2025’s climate, disruption itself is a catalyst for CEO exits, and each high-profile departure in turn adds more disruption to the organization.

It’s worth noting that not all departures are negative or involuntary. A growing number of chief executives are leaving for “new opportunities” elsewhere, 74 so far this year, more than double the count by this time last year.

This suggests a hot market for experienced leaders, with CEOs being poached for bigger roles or new ventures. Meanwhile, interim CEOs are on the rise as boards take their time to find permanent leaders. Nearly one in five CEOs named in January 2025 were interim appointees (versus just 6% the previous year), reflecting both the sudden nature of some exits and caution in making long-term commitments.

Fewer interim chief executives have transitioned to permanent status this year, indicating that many companies are keeping interim leaders in place longer as they search for the right future CEO. This interim trend highlights a significant challenge: some companies lack a well-defined succession plan and are caught off guard, flat-footed by the turnover wave.

The rate of new CEOs who are women has decreased in 2025, with approximately 23–25% of incoming CEOs being female, down from roughly 27–29% in early 2024.

In parallel, women CEOs have also been leaving at slightly higher rates than before – 23% of CEO exits in Q1 were women, up from 20% the previous year, and in over half of those cases, they were succeeded by men. Perhaps in a future newsletter, I’ll tackle a more expansive view of CEO demographics.

Sectors Most Affected

The CEO turnover wave is widespread, affecting nearly every corner of the economy, but specific sectors are experiencing exceptionally high churn rates. The Government and Non-Profit sector has led the nation in CEO changes throughout early 2025. For example, 51 CEOs at government or non-profit entities left in January, and another 43 departed in April, making this sector the single largest source of turnover each month. (Notably, the vast majority of these were in non-profit organizations rather than governmental agencies.)

This pattern isn’t entirely new; non-profits and public-sector institutions often see high leadership changeover, but the sustained volume is striking. It may partly reflect leadership shake-ups tied to the change in U.S. administration (e.g., new government appointees, policy shifts) as well as retirements among long-serving nonprofit heads.

For instance, the CEO of Amtrak (a government-owned corporation) was pushed out in March as the White House installed new leadership aligned with its priorities, illustrating how political turnover can drive executive exits in public-sector roles.

Other industries experiencing elevated CEO turnover include:

Healthcare: Hospitals and health product companies have seen a spike in CEO changes. In April, 26 healthcare CEOs left, representing a 136% increase from the same month in the prior year. In particular, hospital systems saw a wave of departures (15 in April alone, doubling the year-ago figure).
Technology: The tech sector’s leadership remains volatile. Tech firms saw 25 CEO transitions in January and 16 in April, continuing a high pace of churn that tracks with the sector’s turbulence (layoffs, market resets) over the past year. While April’s tech CEO exits were flat year-over-year, the overall trend is that tech companies are not shy about swapping chiefs as they seek new direction in the face of economic headwinds and rapidly evolving and fast-moving innovation cycles.
Financial Services: Banks, fintechs, and financial firms are also contributing to the surge in turnover. The finance sector experienced a rise in CEO exits in early 2025, with double-digit departures (e.g., 15 in January), a notable increase from the previous year. April’s departures were up 83% year-on-year. With interest rate pressures and market uncertainties, boards in finance appear to be making leadership changes to adapt (or, in some cases, CEOs may be taking opportunities in the hotter fintech or private equity space).
Entertainment & Leisure: This industry, including media, hospitality, and gaming companies, has emerged as one of the most “turbulent” sectors for CEO turnover. In January, entertainment/leisure CEO exits were double their year-ago level, and that momentum continued into the spring (16 departures in April, up 129% year-on-year). As consumer behavior shifts and content businesses evolve, many companies are apparently opting for new leadership to find growth paths.
Services and Retail: The services industry (spanning consulting, staffing, etc.) saw an eye-opening jump of 21 CEO exits in April, 250% higher than a year earlier. Retailers likewise have had notable churn; while the absolute number of retail CEO changes isn’t huge, April’s retail departures were five, up from just one in April 2024, and retail CEO turnover was elevated through 2023 as well (with many large chains changing leaders). This reflects the pressure on consumer-facing businesses to combat inflation, supply challenges, and new competition by pivoting strategies (often under new CEOs).

In short, no sector has been entirely immune to the wave of CEO turnover. Highly regulated industries (government, healthcare) and rapidly changing sectors (tech, media) are experiencing especially high rates, but even stalwarts like finance and retail are above historical norms.

This broad-based churn suggests systemic drivers at play (economic uncertainty, demographic shifts, etc.) that cut across industries. It also means boards in every sector should be evaluating their succession plans. If you haven’t had a CEO transition recently, it may be on the horizon.

Notable CEO Exits in Early 2025

The headlines of early 2025 have been filled with high-profile CEO departures. Here are a few notable examples of leaders who exited their roles between January and May, illustrating the diverse reasons behind the trend:

Rodney McMullen – CEO of Kroger (Resigned in March 2025): A prominent example of an unplanned exit, McMullen’s departure was an abrupt ouster following a board investigation. Kroger’s board found the long-time CEO’s conduct to be in violation of company policies, leading to his immediate resignation.
Stephen Gardner – CEO of Amtrak (Stepped down March 2025): Gardner, who headed the U.S. passenger railroad Amtrak, was asked to resign by the White House after a new administration took office. He stepped down “to ensure Amtrak continues to enjoy the full faith and confidence of this administration”.
Lidiane Jones – CEO of Bumble (Resigned January 2025): After only about a year in the CEO role at dating-app company Bumble, Lidiane Jones resigned for “personal reasons,” a move that came after Bumble’s stock price plummeted nearly 50% during her brief tenure. In a candid admission of underperformance, the company acknowledged growth had stalled and even brought back founder Whitney Wolfe Herd to retake the helm.
Warren Buffett – CEO of Berkshire Hathaway (Retirement announced April 2025): Even legendary long-term leaders are part of the turnover narrative. In April, 94-year-old Warren Buffett signaled his impending retirement, announcing he will step down as CEO of Berkshire Hathaway at the end of 2025.
Wendy McMahon – CEO of CBS News & Stations (Resigned May 2025): McMahon’s departure came amid ongoing legal and reputational challenges at CBS, including controversy over journalistic practices and internal lawsuits. Her exit reflects how high-pressure public scrutiny and internal dysfunction can drive even seasoned media executives to exit abruptly.
Andrew Witty – CEO of UnitedHealth Group (Resigned May 2025): Witty’s sudden resignation “for personal reasons” caused UnitedHealth’s stock to dip more than 11% and prompted the company to suspend its 2025 guidance. His exit left a leadership vacuum that was quickly filled by former CEO Stephen Hemsley, underscoring how succession readiness can mitigate investor panic during abrupt transitions.
Ashley Buchanan – CEO of Kohl’s (Terminated May 2025): Buchanan’s firing came just over 100 days into his role after it was revealed that he had undisclosed romantic and financial ties to a vendor. The scandal highlighted how personal misconduct, even if unrelated to company performance, can swiftly derail an executive's tenure.
Jochen Zeitz – CEO of Harley-Davidson (Retired April 2025): Zeitz’s retirement after five years leading the iconic motorcycle company marked a more traditional and planned leadership handoff. Nonetheless, it contributed to the broader pattern of long-tenured CEOs stepping aside in 2025.

These examples reflect just a fraction of the CEO exits seen so far in 2025. From ethical breaches and political pressures to retirements and burnout, the reasons vary widely, but the pattern is clear: a generational, structural, and strategic shift is underway in the leadership ranks across corporate America.

Implications: Risks and Opportunities of the Turnover Wave

For businesses, this unprecedented CEO turnover brings both serious risks and potential opportunities. On the risk side, a high rate of leadership change can be destabilizing.

Frequent CEO departures can disrupt strategic momentum, unsettle employees, and erode investor confidence. Leadership voids or prolonged interim periods create uncertainty about a company’s direction.

As one analyst noted regarding Kroger’s sudden CEO exit, a top-level shakeup “puts [a company] in a vulnerable position” and “for investors, the risk is obvious uncertainty.” Share prices can wobble when a respected chief leaves (indeed, Kroger’s stock dipped on the news of McMullen’s resignation).

Customers and partners might also lose some confidence if they perceive turmoil in the C-suite. In short, the continuity and trust that take years to build can be jolted by a change at the top.

There’s also a cost and time factor: CEO transitions, especially unplanned ones, are expensive (including severance, search costs, and onboarding a new leader) and can require months of effort from the board and management. And if many companies are simultaneously scouting for new CEOs, the talent market for proven leaders becomes tighter, potentially driving up compensation demands and making it harder to secure the ideal candidate.

However, it’s not all downside. A wave of departures also creates opportunities for renewal and strategic pivots. New CEOs can bring fresh energy and perspectives. For companies that have struggled or stagnated, a change at the helm can provide an opportunity to reset their strategy, culture, or priorities.

For example, boards seeking to navigate today’s choppy waters are often looking for “leaders who can navigate uncertainty and course-correct quickly,” and the hiring of a new chief executive can be tailored to acquire exactly those skills. In some cases, long-tenured CEOs stepping aside makes room for modernization: incoming leaders might be more tech-savvy, more attuned to evolving customer preferences, or more open to innovative business models.

The turnover trend also opens doors for talent: rising executives, a level or two down, now have more opportunities to take the top job as vacancies arise. In this sense, the exodus can spur a generational shift that, if managed well, leaves companies with leadership that’s more in tune with current challenges than perhaps their predecessors were.

From an economy-wide perspective, the high CEO turnover could lead to a reallocation of leadership talent. We’re seeing some CEOs leave big public companies to take roles in private equity or startups (seeking new challenges with potentially less public scrutiny).

Conversely, companies may recruit fresh faces from outside their usual talent pools. This churn might accelerate innovation and cross-pollination of ideas across industries if companies seize the opportunity to bring in dynamic leaders.

Still, the net effect of a CEO’s departure largely depends on how prepared the company is. A well-planned transition with a capable successor ready can increase investor confidence. On the other hand, a messy exit with no clear replacement can send a firm into turmoil. As Korn Ferry consultants caution, when a CEO quits, it’s “almost always a shock to the system,” raising doubts about the company’s future and spurring internal anxiety. That means the onus is on boards and leadership teams to manage these transitions carefully, mitigating risks and maximizing the upside.

Preparing for the Turnover Wave: Recommendations for Companies and Boards

For business leaders and boards of directors, the current wave of CEO turnover is a wake-up call. Here are strategic considerations and steps to navigate and anticipate leadership transitions in this environment:

Double Down on Succession Planning: Don’t Wait for a Crisis. Regularly review and update succession plans for the CEO and other key executives to ensure continuity and preparedness. Ensure you have an internal leadership bench with multiple potential successors, and develop talent deeper in the organization (even 2–3 layers below the CEO) who could step up if needed. Identify rising stars and give them growth opportunities.
Monitor CEO Well-Being and Burnout: The job is more demanding than ever, so it’s crucial for boards to keep an open dialogue with their CEOs about workload, support, and burnout. Proactively addressing burnout and mental health can extend a CEO’s effective tenure and prevent unexpected resignations.
Align on Strategy and Expectations: Many forced resignations happen when boards lose confidence in a CEO’s performance or vision. To avoid sudden fractures, boards and CEOs should frequently align on strategy, goals, and risk tolerance. If course corrections are needed, try to address them collaboratively before defaulting to a firing. That said, if a CEO isn’t adapting to significant external changes, whether new technology, shifting consumer behavior, or regulatory changes, boards must be prepared to act.
Be Transparent and Decisive in Transitions: When a CEO does announce a departure (or is removed), clear communication is vital. Both internal teams and external stakeholders should hear a consistent message about the change and the path forward. If an interim CEO is appointed, clarify their mandate and timeline. If a search is underway, reassure stakeholders that the board is on it. Uncertainty is the biggest risk to stakeholder confidence during a transition.
Seize the Opportunity for Refresh: A leadership change is an opportunity to reassess the company’s direction and needs. Boards should revisit what key traits and skills the next CEO should have to meet the current and future challenges (which may differ from what was needed five years ago). For example, do you need a leader experienced in digital transformation? In navigating regulatory hurdles? In turnaround situations? Use the transition to bring in someone who fills those gaps.
Strengthen Governance and Culture: High CEO turnover can reveal weaknesses in governance or company culture. Take this moment to reinforce solid governance practices. For instance, ensure your board has a robust process for evaluating the CEO and providing feedback. Cultivate a culture where senior leadership transitions (CEO or otherwise) are handled with professionalism and respect this will make your company more attractive to top talent.

So... Should You Be Worried Your CEO Just Updated Their LinkedIn?

Let’s face it, 2025 has officially become the “Hot CEO Summer” no one asked for. Nearly 1,260 chief executives have handed in their keycards so far this year, leaving companies scrambling for whiteboard markers, interim titles, and plausible press releases.

But here’s the twist: this isn’t just about burnout or board drama. It’s about a changing business climate that demands new leadership skills. Some CEOs are aging out, some are being gently (or not so gently) shown the door, and others are just realizing early retirement and a beach might be more appealing than quarterly earnings calls.

For businesses, this level of turnover is akin to corporate Jenga: pull the wrong piece too quickly, and everything wobbles. But if you're strategic, it can be an opportunity to rebuild smarter. Organizations that treat succession planning as a living, breathing discipline, not a once-a-decade fire drill, are the ones most likely to thrive in this environment.

So, whether you’re a board chair, an ambitious No. 2, or just wondering if your CEO’s “out of office” is permanent, here’s the bottom line: leadership turnover is no longer the exception. It’s the new operating reality. The smart move? Plan for it. Design for it. Maybe even embrace it. In today’s world, agility in leadership isn’t just an HR talking point; it’s a competitive edge.

And hey, if your CEO does quit mid-quarter, at least now you can say: “Oh yeah, we saw this coming.”