FTSE 100 companies witnessed a noticeable uptick in CEO transitions during 2022, with 13 chief executives stepping down or being replaced. This figure marks a significant increase compared to the notably low number of CEO changes recorded in 2021, indicating a shift toward more normalized levels of leadership turnover.
The spike in executive changes is largely seen as a recalibration by top firms following the unprecedented stability in leadership during the height of the COVID-19 pandemic. Many companies had opted for continuity in their executive ranks in 2021, preferring to maintain consistent leadership through a time of global uncertainty. As the world moved into a phase of recovery in 2022, businesses appeared more willing to revisit their strategic direction and make necessary leadership adjustments.
A number of factors contributed to the increase in CEO departures. For some companies, the exits were driven by performance reviews and evolving expectations from boards seeking fresh perspectives and skill sets aligned with new business challenges. Others saw planned successions come to fruition after being postponed during the pandemic. In certain cases, the demanding nature of the role amid economic volatility, inflationary pressures, and shifts in consumer behavior played a role in prompting leaders to step down.
Sectors such as retail, energy, and finance saw the most notable changes. These industries were especially impacted by changing market dynamics, supply chain disruptions, and the transition to more sustainable business models. As a result, several companies in these sectors opted for new leadership capable of steering them through a period of transformation.
This increase in turnover is not necessarily a sign of instability but rather a reflection of companies’ readiness to realign their leadership with evolving strategic goals. Boards are increasingly focused on future-oriented competencies, including digital acumen, ESG (Environmental, Social, and Governance) priorities, and crisis management capabilities.
Analysts suggest that this trend may continue into 2023, as companies further adapt to post-pandemic realities and look to leadership that can navigate emerging economic and regulatory landscapes. Succession planning and leadership development are expected to remain high on the agenda for FTSE 100 firms aiming to stay competitive in an unpredictable environment.
In summary, the rise in CEO turnover within the FTSE 100 in 2022 signals a return to proactive executive management as businesses move beyond crisis mode and into a phase of strategic renewal and growth.
