According to research firm Exechange, 74 chief executive officers have been fired or forced out this year, which is the highest number since 2017.
“CEOs who do not perform well in the rapidly changing market environment are now apparently being replaced very rigorously,” Exechange founder Daniel Schauber recently told Bloomberg Law (subscription required).
For example, the CEO of Starbucks recently resigned after two quarters of declining sales and mounting pressure from activist investors Elliott Investment Management and Starboard Value.
CEO transitions are a decisive moment for companies. As companies prepare for annual board evaluations this year, they may want to consider whether the board is effectively addressing CEO succession planning. The CEO succession planning process should address not only expected transitions, such as retirement, but also unexpected events, such as death, illness, or
an untimely departure.
Source: exechange.com, Bloomberg Law Data as of Aug. 13 each year
