CEOs are joining the Great Resignation in record numbers as market volatility and growing pressures are burning them out. In 2018, CEOs resigned at a rate of 3.4 per day, according to data from Equilar. The number of CEOs who resigned in 2021 was also high, but it pale in comparison to this year(recoreded the highest numbers in the first quarter).
What’s behind this trend? There are a few factors at work here: 1) Increasing pressure from shareholders 2) The rise of activist investors 3) More uncertain macroeconomic conditions 4) Greater scrutiny of company performance by the public and the media.
So what does this mean for businesses? First and foremost, it means that there is an increased need for experienced executives with a deep understanding of their businesses and the ability to navigate through difficult times. Secondly, it can create a vacuum that is filled by less qualified individuals or inexperienced managers who may not be up for the challenge. Finally, it can lead to firings or other types of layoffs, which can have a significant impact on employee morale and productivity.
CEO Turnover Rose In Q1 For The First Time Since the beginning of pandemic
As the market volatility and pressures continue to grow, more and more CEOs are choosing to resign from their positions. In the first quarter of 2022, CEO turnover rose 29% since the pandemic, when 441 CEO exits were recorded. This is the highest quarterly total since the beginning of the pandemic.
Although many factors are likely contributing to this increase, one major factor is most likely market volatility. CEOs are often forced to make quick decisions that can lead to serious consequences. As a result, they are increasingly looking for new and safer opportunities.
This trend is unlikely to change in the near future. Market volatility is only going to increase as we move closer to 2024, which is when many of the major elections will take place. As a result, CEO turnover is likely to continue rising in the near future.
Market volatility and growing social pressures were exhausting for CEOs
CEOs are joining the Great Resignation in record numbers as market volatility and growing pressures are burning them out. Many CEOs feel that they have no choice but to step down or face resignation if they can’t turn their businesses around.
There has been a sharp increase in resignation among CEOs over the past year, with 106 CEOs of quitting in December 2021, while 142 CEOs have been departure in October 2021. This is the highest number of departure were recorded since pancemic. Overall, number of departing CEOs during the fourth quarter of 2021 was 16% on a year-over-year basis. The pressure to succeed is relentless, and many CEOs feel that they can’t keep up with the ever-changing demands of the business world.
Some of the most common reasons given for resigning include feeling overwhelmed by the responsibilities of the job, feeling that the company is going in a wrong direction, and experiencing personal health issues. It’s clear that these CEOs are under a lot of stress, and that the pressure is starting to take its toll.
If you’re a CEO feeling overwhelmed by the challenges of your job, it might be time to consider stepping down. There are plenty of other CEO’s out there who are ready and willing to take on your responsibilities, and you’ll be able to retire with both your dignity and your wealth intact.