Opinion
Vantage | Why are CEOs quitting in record numbers?
This phenomenon is not limited to the US but is being observed globally
The Vantage Take Last Updated:October 25, 2023 11:42:16 IST 
The Great Resignation. Image courtesy Nick Youngson/Alpha Stock Images
In 2021, an American professor made a startling prediction: a sustained mass exodus from the workforce would occur due to the pandemic. While this prophecy may have initially sounded ominous, he gave this phenomenon a rather cool name — “The Great Resignation”. As it turns out, the professor was right. In 2021, a record number of individuals decided to quit their jobs with the number standing at an astonishing 47 million in the United States alone.
The Great Resignation: A recap
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Now, two years have passed since the onset of this extraordinary event. The overall quit rate in America is gradually approaching pre-pandemic levels signalling the end of The Great Resignation for most workers. However, this trend doesn’t apply to everyone. For CEOs, the so-called “big quit” is just beginning to pick up momentum.
A challenging year for CEOs
The numbers speak for themselves. CEOs are currently facing one of their toughest years in decades. So far this year, more than 1,400 top executives have left their positions marking the highest figure in the past two decades. This represents an almost 50 per cent increase from the same period last year. The C-suite is witnessing a major transformation and there are several key factors contributing to this phenomenon.
Factors contributing to CEO resignations
First and foremost, many CEOs are choosing to trade the relentless demands of their corporate roles for a more balanced family life. The pandemic has forced individuals to reevaluate their priorities and some high-level executives have decided that spending more time with their loved ones is more important than the corner office.
Additionally, the baby boomer generation is rapidly approaching retirement age. As a result, a considerable number of CEOs are stepping down to enjoy their well-deserved golden years. This generational shift is impacting leadership across various industries.
Furthermore, some CEOs are voluntarily stepping down from their positions due to their own actions. Instances of poor performance, ethical concerns or controversies have led to the ousting of top executives. In other cases, boards and stakeholders are demanding change pushing for new leadership to guide companies through uncertain times.
Global implications
Regardless of the reasons behind the surge in CEO resignations, one thing is clear – they are piling up at a remarkable pace. This phenomenon is not limited to the US but is being observed globally. Just a few decades ago, the average CEO tenure stood at an impressive 12 years. Today, it has decreased to approximately five to seven years. Chief executives around the world are now moving in and out of their roles faster than ever before.
Views expressed in the above piece are personal and solely that of the author. They do not necessarily reflect Firstpost’s views.
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