The corporate world is experiencing a wave of executive departures, with 220 global CEO appointments in 2024 which was a six-year high according to Russell Reynolds Associates. Gray & Christmas reports over 1,800 CEO departures through to October 2024 – the highest year-to-date figure since tracking began back in 2002.
But it’s the way we deal with these departures that has changed in 2025, and might even help explain this "Great Executive Shuffle" as it shows no signs of slowing down.
The perfect storm of executive exits
Several factors are causing this leadership exodus. Post-pandemic burnout certainly affects C-suite executives to this date as they navigated their companies through unprecedented times. Meanwhile, activist investors, which are also on the rise, are increasingly demanding fresh leadership to drive growth.
The generational shift is also worth touching on. Baby Boomer executives who delayed retirement during the pandemic are now stepping down en masse, creating a sudden leadership vacuum. Simultaneously, younger executives are more willing to make bold career moves, viewing frequent transitions as essential for optimizing advancement.
"When I assess the overall data, there are two major forces at play here: theatre and science," says Stephen Langton, a Russell Reynolds Associates Managing Director in Asia Pacific. "Today everyone, the media and beyond, wants to talk about CEO succession. What people gravitate to is the human story of the CEO: Did they succeed, or did they fail and why?"
The hidden costs of leadership instability
This executive churn of course comes with some heavy financial implications. A PwC Strategy& study once showed that firing a CEO forgoes an average of $1.8 billion in shareholder value when pitting them against firms with better succession planning. Recent research shows that poor succession planning can cost companies up to $350 million in profit over three consecutive years.
The ripple goes beyond immediate costs though. Leadership changes may cause a full-scale organizational restructuring, affecting everything from strategic partnerships to merger and acquisition activities.
Board governance under pressure
Corporate boards are finding themselves under a ton of pressure to manage these transitions more effectively - and some adaptations are occuring. The traditional approach of lengthy and secretive executive searches is giving way to more transparent, accelerated processes.
Progressive companies are investing heavily in succession planning and leadership development programs. Though, it’s common for organizations to still lack adequate bench strength, meaning they must look externally for senior leadership talent.
Professional executive search firms are experiencing unprecedented demand as companies scramble to fill leadership gaps. Markets across Europe are particularly active, with Executive search Nederland specialists reporting an increase in client inquiries.
Some are implementing "leadership marketplaces" – internal platforms that help identify and develop high-potential employees across different divisions, while others are turning to interim leadership models. This means bringing in executives with experience on temporary contracts while conducting thorough searches for permanent replacements.
The Great Executive Shuffle isn't slowing down because it represents a bigger shift in corporate leadership dynamics. In 2025, the organizations that outcompete will be those who see leadership transitions not as disruptions, but as opportunities to strengthen their competitive position.
