CEO turnover rates rise amid increasing pressures, while the UK lags on gender parity in top firms
A new study has revealed that more than a quarter of global CEOs who left their positions in 2023 were dismissed, as pressures on top executives continue to mount. The analysis, conducted by advisory firm Russell Reynolds Associates, found that 27% of the 178 CEO departures across 12 UK and international stock markets were due to dismissals, reflecting the growing challenges faced by business leaders.
The study also noted that the most common reason for CEO exits was retirement, accounting for 29% of the changes. However, the significant proportion of terminations highlights the intense demands on CEOs today, which include navigating economic pressures, managing supply chain issues, and driving net-zero goals, further complicated by geopolitical crises like the ongoing conflicts in Ukraine and Gaza.
In the UK, there were 13 CEO changes among FTSE 100 companies in 2023, marking the second-highest rate of departures among the indices tracked. Notable high-profile exits included Dame Alison Rose of NatWest, who stepped down after a scandal involving her comments about politician Nigel Farage, and Bernard Looney of BP, who resigned following a failure to disclose past relationships with company colleagues.
Luke Meynell, a managing director at Russell Reynolds Associates, explained that the increasing turnover reflects the evolving and demanding nature of the CEO role. “The pressures on CEOs today are multiplying,” he said, referring to global challenges and economic strains.
The study also highlighted the ongoing disparity in gender representation at the highest levels of business. Despite a record number of women being appointed to CEO roles globally in 2023, the UK remains far behind other countries in achieving gender parity in its top firms. The report projects that, at the current pace, it will take at least 50 years for the UK’s FTSE 100 to reach gender balance, a stark contrast to the US’s S&P 500, which could achieve parity in just 30 years. France’s CAC 40, on the other hand, may reach gender equality in as little as 17 years.
In another setback for gender diversity in the UK, two female CEOs, Jette Nygaard-Andersen of Entain and Alison Brittain of Whitbread, also stepped down in 2023. Laura Sanderson, the UK lead at Russell Reynolds Associates, emphasized the slow rate of change. “Though 2023 saw more women appointed to the CEO role globally than ever before, the rate of change is still too slow if we are going to get to parity in a reasonable time frame,” she said.
Sanderson further noted that the relative scarcity of female CEOs makes those in the role more prominent, with women in top positions facing heightened scrutiny. “Today’s CEOs are expected to be more of a public figure than ever before,” she added.
