CEO turnover increased 55% in 2023

U.S. companies announced 55% more CEO changes in 2023 than in 2022, according to a report by outplacement firm Challenger, Gray & Christmas that included public U.S. businesses as well as private, government and nonprofit companies.

The report found 1,914 CEOs left their positions in 2023, which is the highest amount since the firm started tracking the data in 2002.

Turnover in the retail sector among CEOs more than doubled last year with 52 departures, compared to 21 CEO exits in 2022, the report noted. CEOs are leaving their roles at younger ages. Challenger reports the average age of an exiting CEO was 56 in 2023, down from 63 the previous year.

Judith McKenna, retired as CEO of Walmart International last year at the age of 57. Former Sam’s Club CEO Rosalind Brewer exited Walgreens top spot in September at 61.

The rate of new CEOs across all industries who are women was 28% to finish out 2023, higher than the 26% of new CEOs who were women in 2022 and the highest percentage on record. The percentage of women CEOs leaving the top spot rose to 24% in 2023, up from 19.5% during the corresponding period in 2022. Thirteen women vacated their retail CEO positions last year, and only five women took over top jobs at companies in the sector, according to the report.

Brewer was replaced by Tim Wentworth. McKenna was replaced by Kath McLay at Walmart, the former CEO of Sam’s Club. Michelle Gass left Kohl’s to become CEO of Levi’s. She was replaced by Tim Kingsbury.

“Retail, probably, has seen the biggest shakeup in its leadership for a long time,” Challenger said.

A separate report from Korn Ferry found 57% of new CEOs in retail last year were already working for the company. Most of the external hires came from outside the retail industry but mostly in adjacent industries like hospitality and consumer packaged goods.