CEO Turnover Remained High in the First Half of 2023, But Female Leaders Are Gaining Momentum
Global CEO turnover remained high in the first half of 2023, but more women entered the top role.
According to a report from leadership advisory firm Russell Reynolds Associates, 106 CEOs left their roles in the first half the year. That total is only two fewer than the total during the same period in 2022. The report also found that 77 percent of new CEOs were appointed internally as part of planned successions.
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The turnover comes as companies manage inflation, foreign exchange headwinds and a weakened consumer — trends that have contributed to a slower start to the fiscal year.
While turnover is still high, more women are entering the chief executive role than ever before. In the first half of 2023, 17 women were appointed to the role, which accounted for 13 percent of all new CEOs. This was up from 2.4 percent from the first half of 2018. Across companies in the S&P 500, 13 percent of new CEOs are women.
Within retail, this trend is certainly evident. The influx of female retail CEOs was a major storyline throughout 2022, persisting into 2023. Amid a general shakeup across retail, CEO shifts have opened the door for new leaders — often women — to come into the top position. Recently, this has been the case at Under Armour, which brought on Stephanie Linnartz as CEO this year. Red Wing Shoe Co. and Pacsun also recently named female chiefs. And at Foot Locker, newly appointed CEO Mary Dillon joined the Fortune 500 footwear retailer after a stint as CEO of another company on the list, Ulta Beauty.
According to the 69th annual Fortune 500 ranking, women run 10.4 percent of companies on this year’s list. In January, women made up more than 10 percent of CEOs leading Fortune 500 Companies for the first time since the Fortune 500 list began 68 years ago.
According to Fortune, 52 of the 500 companies on the list are now helmed by women, up 18 percent from the same time last year. During a record year for women in leadership roles, 12 female CEOs of Fortune 500 companies were hired in the last year.
According to executive outplacement firm Challenger, Gray & Christmas, which tracks U.S. CEO turnover, the rate of new female CEOs fell in May to 28.8 percent from April’s 29.5 percent, but was higher than the first five months of 2022. Across all CEO departures in the U.S., May saw the highest number of exits in one month on record.
“It is significant that so many CEOs are leaving, especially since the last time we saw numbers this high was just prior to COVID-19 lockdowns,” said Andrew Challenger, workplace expert and SVP of Challenger, Gray & Christmas in a statement. “Certainly, companies are dealing with some uncertainty heading into the second half of the year surrounding recession concerns, disruptive technology and high interest rates.”
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