Recent Exits Raise Alarms (Image Credits: Flickr)
Corporate boardrooms faced fresh upheaval in early 2026 as three prominent companies announced the exit of their top executives.
Recent Exits Raise Alarms
Workday, PayPal, and The Washington Post each parted ways with their CEOs in recent weeks, extending a pattern of accelerated leadership changes. These moves came amid broader market pressures that have tested executive tenures. Investors watched closely as boards acted decisively on performance concerns. The departures underscored vulnerabilities at even established firms.
Such high-profile changes rarely occur in isolation. They reflect deeper dynamics at play across industries. Analysts pointed to stalled growth and shifting expectations as key factors. Still, the swift replacements hinted at proactive planning in some cases.
Record Turnover in 2025
Global CEO departures reached 234 last year among listed companies, a 16% increase from 2024 and 21% above the eight-year average, according to Russell Reynolds Associates’ Global CEO Turnover Index Report. This marked the second straight year of record exits. Activist investors played a significant role, prompting 32 resignations within a year of their campaigns, up from 27 the prior year.
Boards showed less patience with underperformance. Market volatility and demands for rapid transformation added to the strain. Laura Mantoura, managing director in Russell Reynolds’s U.S. Board & CEO Advisory practice, noted that these macro pressures persist. She predicted sustained high turnover levels in 2026.
Experience Trumps Novelty in Replacements
Companies increasingly favored proven leaders for top roles. Among S&P 500 CEO appointments in 2025, only 79% were first-timers, down from 83% in 2024 and below the eight-year average of 85%. This shift appeared in recent successions. PayPal named Enrique Lores, former president and CEO of HP, to succeed Alex Chriss, an Intuit executive vice president.
Workday turned to cofounder Aneel Bhusri, who held CEO or co-CEO positions over the past 15 years, replacing Carl Eschenbach. Eschenbach had come from Sequoia Capital and VMware. These choices highlighted a preference for familiarity amid uncertainty. Boards aimed to leverage deep industry knowledge for stability.
Debate on Future Trends
Views diverged on whether turnover would ease. Andy Challenger, chief revenue officer at Challenger, Gray & Christmas, anticipated a slowdown after three years of intense change following COVID-era caution. He cautioned that a recession could reignite exits. Leadership advisers urged stronger succession strategies regardless.
Bill George, a leadership expert, emphasized long-term vision in selections: “Figure out what [the company] is going to need for the next 10 years, and find people with the mental agility and courage to look at it differently than you looked at it.” Proactive planning remained essential for resilience.
Key Takeaways
- CEO exits hit 234 globally in 2025, driven by activists and volatility.
- Boards prioritize experienced leaders, with first-time CEOs declining.
- High turnover likely persists unless economic conditions stabilize.
These developments signal that corporate leadership demands adaptability in turbulent times. Boards must balance short-term pressures with enduring strategy. What do you see as the next driver of CEO change? Share your thoughts in the comments.
