U.S. businesses experienced a notable decline in CEO turnover in 2022, registering the lowest annual exit rate in five years. According to a report by Challenger, Gray & Christmas, Inc., CEO exits dropped to 1,235 in 2022—a decrease of 8% from the previous year’s 1,337 departures, and the fewest CEO changes recorded since 2017, when annual exits numbered 1,160.
December 2022 marked a pivotal moment: only 100 CEOs left their positions, a 6% decrease from the 106 departures in December 2021. This slowdown capped a year of diminishing executive turnover. Notably, October and November also saw below-average changes—95 and 71 CEO exits, respectively—contributing to the trend of stabilizing leadership moves toward year-end.
Several sectors played key roles in this trend. The government and non‑profit sector recorded the most CEO departures, with 271 exits. The technology sector saw 137 CEO changes. The healthcare/hospital sector recorded about 111 exits in healthcare and 103 in hospital leadership. This uneven distribution underscores that while overall turnover slowed, certain fields continued to see higher executive churn.
Retirement stood out as the top reason for departure in 2022, accounting for 308 exits. Another 272 CEOs shifted internally—often taking on board roles or other senior positions within their companies. Fewer departures were tied to misconduct in 2022 (only two cases, compared to seven in 2021), while a noticeable 288 CEO resignations offered no public reason, up from 155 nondisclosures in 2021. This pattern suggests that many leaders, particularly those who had navigated pandemic-era turbulence, chose to step aside voluntarily, rather than due to performance pressure or scandal.
The years following the COVID-19 pandemic were marked by the “Great Resignation,” which disrupted roles across industries—including at the top executive tier. The pandemic introduced extraordinary challenges, from supply chain issues to soaring labor costs. As 2022 wore on and uncertainties eased, many companies opted to maintain established leadership teams rather than precipitate more top-level changes.
Andrew Challenger, Senior Vice President of Challenger, Gray & Christmas, reflected on corporate behavior: “Companies appear to be holding steady with their leadership after years of leadership changes and unprecedented uncertainty.”
While the overall number of CEO exits fell, the departure rate among women slightly increased in 2022. About 20% of exiting CEOs were women—the highest female exit rate since Challenger began tracking gender in 2010. This echoes broader themes of the pandemic’s impact on women in leadership, with burnout, inequity, and shrinking support systems prompting re-evaluation of executive roles.
The lull in CEO turnover during 2022 contrasts sharply with the dynamic situation unfolding in 2023 and early 2024. By September 2023, CEO exits had surged to record highs—with 1,425 departures by Q3, compared to 969 during the same period in 2022. And February 2024 saw 248 CEO exits—marking the highest monthly figure in Challenger’s tracking history. These shifts suggest that as economic uncertainty resurged, companies resumed reassessing leadership—a signal that corporate governance remains acutely sensitive to broader market swings.
The decline in CEO turnover in 2022 reflects a return to executive steadiness following a period of intense organizational flux. But the momentum of 2023 suggests that this calm may have been a plateau before another wave of changes, as companies recalibrate their leadership to meet evolving economic, technological, and societal demands.
