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A record 2,221 CEOs announced plans to leave their posts in 2024, according to Challenger, Gray & Christmas. It’s the highest total the firm has tracked since it began keeping records in 2002. The trend continued in January 2025, with a record 222 CEOs leaving their posts.
Perhaps most troubling, Russell Reynolds says that just 28 percent of those CEO departures were planned. While that’s a 7 percent increase in year-over-year stats, it still means that the majority of companies scramble to fill a leadership void when a CEO leaves or unexpectedly resigns.
What are the most important steps a company should take when the CEO quits?
Key Takeaways
- Record CEO departures in 2024, mostly unplanned, signal major leadership instability.
- Experienced interim CEOs are vital for immediate stability after a CEO quits.
- Open communication with all stakeholders is crucial for building trust during the transition.
- Maintain focus on the company’s future goals to reassure and motivate.
- CEO succession planning is now more critical than ever to prepare for future transitions.
1. Ensure Continuity of Leadership
Everyone from the board of directors to the customers to the employees is going to be wondering what the leadership vacuum will mean for them.
Finding the right interim CEO who can step in quickly and take charge of the day-to-day running of the company is a critical first step in righting the listing ship. In fact, the appointment of interim leaders nearly doubled in 2024 to 13.5% from 6.8% in 2023, Challenger, Gray & Christmas says.
When your CEO resigns, it might be tempting to appoint a board member, a senior vice president or some other exec who knows the company, to keep the seat warm while a permanent executive search takes place. But this is no time to test a first-time executive who hasn’t navigated the instability that often comes with a big change in the C-suite. It is far better to bring in an experienced CEO who knows how to take charge and who is expert at stepping into periods of transition.
Interim and Fractional CEOs to the Rescue
That’s why so many companies contract with InterimExecs to have one of our vetted, experienced interim CEOs step into the job. A true interim can be on-site in a matter of days. And we say “true” because you will come across many fake interims, who are really job seekers in disguise. Now’s the time you want the battle-tested leader helping you through a period that can shake even the strongest organization.
In this interactive webinar, InterimExecs CEO Robert Jordan and President Olivia Wagner, talk about the top questions companies ask when exploring whether an interim CEO is a fit for them:
2. Begin the Search for a Permanent Replacement
Once an interim CEO is in place, the company can begin the process of finding a permanent replacement. After your CEO leaves, a full-time CEO search can take months or even years. While the search is taking place, the interim CEO will work to stabilize the organization and establish a strong foundation and structure for the permanent hire.
An interim can also advise the board and management team in identifying and vetting the right CEO for hire. In recent years, many interims have been asked to stay on to help get the new permanent CEO up to speed quickly and ensure a smooth handoff.
3. Communicate, Communicate, Communicate
Employees, customers, suppliers, lenders, and other stakeholders need to hear from the board of directors and the interim Chief Executive Officer. The communication can take many forms, from in-person meetings to general emails to social media posts. Be prepared to answer questions as openly and honestly as possible, without making promises you can’t keep.
It is particularly important to be transparent with employees. They will be worried and anxious about the future of the company and their paycheck. You don’t want valuable employees to start job hunting while you’re getting operations back on track.
Now is the time to build trust and give the speech all new CEOs should give.
4. Focus on the Future
The CEO’s resignation is a setback, and usually coupled with many questions about what to do next. But, it’s important to remind all of the stakeholders — from employees to lenders — that the company has a bright future, and that each person has a place in it. Focus on the company’s goals and objectives and continue to work hard to achieve them.
5. Review the Company Succession Plan
Succession planning is important for the family business or company with one or more co-founders, but it’s just as important for large corporations. Ideally, you’ll have a plan in place before your CEO quits. But if not, now is better than never. Use this experience to inform the succession plan you create for the future, and help it drive a culture of mentorship and leadership development to ensure you are not caught flat-footed if a future CEO suddenly resigns.
Why Are CEOs Quitting in Record Numbers?
In 2024, the greatest number of CEO exits happened in the government/nonprofit, healthcare, technology and entertainment/leisure sectors.
No doubt, the trend of CEOs leaving will continue.
Russel Reynolds says, “High CEO turnover is reflective of market volatility and the increased scrutiny of CEOs today. This has also impacted the number of CEOs who are choosing to do the job more than once. We’re seeing more ‘step-up’ first-time CEOs appointed to the role; some of these are internal candidates as part of planned CEO succession, but some of them are external. In addition, many CEOs are now choosing to step down and retire from executive life rather than choosing to undertake a second CEO role elsewhere.”
What Are Some Signs the CEO is in Trouble?
Preparing for a replacement when a CEO quits is one thing. But a departure sometimes comes as a surprise. These are some warning signs a CEO may be in trouble:
- The company is underperforming. If the company is not meeting its financial goals or is losing market share, this could be a sign that the CEO is not doing a good job.
- The CEO is making poor decisions. If the CEO is making decisions that are not in the best interests of the company, this could be a sign that they are not fit to lead the company.
- The CEO is losing the support of the board of directors. If the board of directors is no longer confident in the CEO’s ability to lead the company, this could be a sign that they are about to be fired.
- The CEO is facing personal problems. If the CEO is facing personal problems, such as a divorce or a health issue, this could be a distraction that is making it difficult for them to do their job.
- The CEO is simply not a good fit for the company. Sometimes, a CEO is simply not a good fit for the company. This could be due to a difference in values, a lack of experience, or a personality clash.
Which CEOs Resigned This Year?
Among the high-profile CEO turnovers since Jan. 1, 2024:
- Amtrak CEO Stephen Gardner is stepping down from his position to “to ensure that Amtrak continues to enjoy the full faith and confidence of this administration.” The decision comes as Department of Government Efficiency (DOGE) head Elon Musk said he believes the US Postal Service and Amtrak need to be privatized.
- Kroger Co. Chairman and Chief Executive Officer Rodney McMullen resigned “following a Board investigation of his personal conduct that, while unrelated to the business, was inconsistent with Kroger’s Policy on Business Ethics,” the company said.
- Boeing CEO Dave Calhoun stepped down as part of a widespread management shakeup brought on by a series of safety issues that started on Jan. 5 when a door panel blew off a 737 MAX Alaska Air jet mid-flight.
- Intel CEO Pat Gelsinger, who joined Intel in 1979, was “forced out” after the board lost confidence in his plan to revive the struggling chipmaker.
No organization is immune from changes at the C-suite. What’s your plan if your CEO leaves or is fired?
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InterimExecs RED Team is an elite group of CEOs, CFOs, and other C-suite executives who help solve challenges, opportunities, and leadership gaps. Learn more about InterimExecs RED Team here. Or contact us and request a confidential conversation to explore how we can help you.
More Resources:
The 6 Biggest Business Mistakes and How to Fix Them
Interim Tackles Challenges When CEO and CFO Fired for Stealing From Public Company
Is an Interim Executive a Good Fit For Your Company?
