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Report: CEO Departures Are Rising, Even at Strong-Performing Companies

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CEO turnover is rising—even among executives who are delivering strong results for their companies. In the S&P 500, CEO successions at firms in the top three performance quartiles (by total shareholder return) jumped from 7% in 2024 to 12% in 2025. Among bottom-quartile performers, the rate was only modestly higher at 14%.

“The rise in departures, even among strong performing companies, reflects today’s higher CEO turnover. Many leadership changes in 2025 reflected strategic realignment and long-term succession planning rather than immediate performance triggers,” said Ariane Marchis-Mouren, coauthor of the report and Senior Researcher at The Conference Board.

The study also reveals that external appointments to the CEO role are becoming more common. In the S&P 500, external hires nearly doubled—from 18% in 2024 to 33% in 2025—marking the highest level in eight years. This increase highlights boards’ focus on bringing in fresh perspectives to handle novel problems or transformative efforts, versus a reliance on in-house experience.

These findings come from a report by The Conference Board, Egon Zehnder, ESGAUGE, and Semler Brossy, which also examines CEO turnover, demographics and diversity, tenure, and internal promotions. Findings are based on SEC Form 8-K filings from Russell 3000 and S&P 500 companies through October 3, 2025.

Turnover

CEO turnover is rising even among strong-performing companies.

  • Lower-performing companies (bottom quartile): Turnover remained elevated in 2025—14% in the S&P 500 and 18% in the Russell 3000—though slightly lower than 2024.
  • Top performers (top three quartiles): In the S&P 500, turnover jumped from 7% to 12%, narrowing the gap with low performers.
  • Understanding the numbers: “In 2025, boards appeared to take a more proactive stance—executing transitions deferred during recent volatility, initiating leadership changes to adjust strategy, and reshaping executive teams to address evolving market and stakeholder expectations. In this context, CEO succession serves not only as a response to results but also as a governance tool for positioning companies for the future,” said Chuck Gray, Co-Leader of the US CEO and Board Practice at Egon Zehnder.

Compared to last year, 2025 is on track to see many more CEO successions at large-cap companies. 

  • S&P 500: CEO succession announcements increased significantly in 2025, driving the projected annual rate to 13% as of October—well above the 10% recorded in 2024.
  • Russell 3000: CEO succession announcements remained at 11%.
  • Understanding the numbers: “The rise in CEO transitions among large companies signals boards’ readiness to act with greater confidence—advancing planned successions and then reestablishing a more measured cadence later in the year,” said Brian Campbell, Leader of The Conference Board Governance & Sustainability Center.

External Promotions

Move over, insiders! It’s becoming more common for external hires to become CEO.

  • S&P 500: In 2025, 67% of successions were internal. But external hires nearly doubled—from 18% to 33%—pushing internal promotion rates below 70% for the first time in 8 years.

  • Russell 3000: 65% of successions were internal, slightly up from 62% in 2024.
  • Understanding the numbers: “While most CEO appointments continue to come from within, the growing share of external hires points to a shift in how boards think about leadership succession. They’re increasingly prioritizing strategic renewal and the infusion of new perspectives—seeking leaders who can navigate disruption, accelerate transformation, and respond to evolving stakeholder expectations,” said Umesh Chandra Tiwari, Executive Director of ESGAUGE.

Tenure

Departing CEO tenure rose, especially for the largest companies.

  • S&P 500: Departing CEOs served an average of 9 years, up from 7 years in 2024—the highest since 2021.

  • Russell 3000: Departing CEOs averaged 8 years, an increase from 7 in 2024 but in line with recent years.
  • Understanding the numbers: “The rise in departing CEO tenure among S&P 500 firms reflects both a delayed retirement wave and boards adjusting to a disruptive 2025 environment. Many long-serving leaders are stepping down in orderly transitions, even as others are being replaced amid shifting market realities. The picture is one of recalibration—experienced CEOs exiting after extended tenures, and boards seeking new skill sets to navigate a transformed business landscape,” said Blair Jones, Managing Director at Semler Brossy.

Gender Diversity

CEO gender diversity comes to a halt: It plateaued in 2025, after years of steady progress.

  • S&P 500: Share of women CEOs remained the same in 2024 and 2025 (48 women CEOs).
  • Russell 3000: Women represent 7.7% of CEOs, slightly up from 7.6% in 2024 (230 vs. 225 CEOs).
  • Understanding the numbers: These modest shifts mark a pause after steady gains between 2020 and 2024, when representation rose by at least two percentage points across both indices.

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