Crisis in the C-Suite: How to Prepare for the Wave of CEO Exits
A record number of CEOs are leaving their roles, and not just because they’ve reached retirement age. In January 2025 alone, 222 chief executives left their roles, the highest total for the month in more than two decades.1 This follows an all-time high of 2,221 CEO exits in 2024.2 For organizations without a formal succession plan, this wave of departures signals not just a transition, but a potential crisis.
At SIGMA, we attribute the rise in CEO exits to a perfect storm of significant challenges: economic volatility, boardroom pressure, ongoing digital transformation, and rising stakeholder expectations. When combined with demographic realities — many CEOs are approaching traditional retirement age — the result is a historic leadership transition.3
Why Are So Many CEOs Leaving?
Today’s CEOs face extraordinary demands. Over the last five years alone, leaders have had to navigate the pandemic, post-COVID recovery, mass resignations, inflation, a credit crunch, and increasing political and regulatory uncertainty.4 These compounding pressures have left many executives physically and emotionally drained.
And recent data underscores these mounting pressures:
- A 2024 study revealed that 55% of CEOs reported experiencing mental health issues, marking a 24-point increase from the previous year.5
- A Deloitte survey found that 70% of C-suite executives were at risk of burnout and considered moving to organizations with better workplace cultures.6
- Research indicates that 36% of managers reported alarming levels of stress and burnout in 2024.7
Boards, facing heightened accountability and often influenced by activist investors, are quicker to act when leaders fail to deliver. At the same time, moving on is more appealing than ever. Many ex-CEOs are transitioning into less stressful roles, such as board directorships or private equity advisory positions.8
The Cost of Being Unprepared
When a CEO leaves suddenly, it can destabilize the organization. Research shows that forced successions can result in substantial financial losses, with some companies ceding an average of $1.8 billion in shareholder value compared to firms with planned transitions.9 For the S&P 1500 alone, poorly managed CEO and C-suite transitions may forfeit close to $1 trillion in market value annually.10
Despite these risks, most companies are underprepared. A 2023 report by Deloitte found that only 21% of organizations have a formal CEO succession plan in place.11
Breaking the Cycle with Succession Planning
Disruption may be unavoidable, but turmoil isn’t. Succession planning — when done well — creates leadership continuity, preserves institutional knowledge, and maintains stakeholder confidence.12, 13, 14
A well-crafted succession plan doesn’t just prepare for CEO transitions — it can also help prevent them. By identifying and developing future leaders, succession planning creates a pipeline of talent that supports the CEO and distributes leadership responsibilities more effectively. This shared leadership model can ease the pressure on the CEO, reducing the risk of burnout and voluntary resignation. At the same time, structured development and regular performance reviews aligned with strategic goals help ensure that CEOs are equipped to meet board expectations, decreasing the likelihood of forced exits. In this way, succession planning becomes both a safeguard against disruption and a support system that enables leaders to thrive in their roles for longer.
Checklist for Effective Succession Planning
Effective succession planning involves:
- Identifying successors early, even if they are two or three levels below the CEO.
- Using validated assessments to evaluate leadership potential objectively.
- Developing talent deliberately, with targeted coaching and experience-based growth.
- Maintaining readiness, so the plan is always actionable.
Leadership Turnover is Rising — But Your Risk Doesn’t Have To
CEO turnover is accelerating. But with the right strategy in place, your organization can meet this moment with confidence. Succession planning isn’t just about preparing for the worst — it’s about positioning your team for long-term success.
At SIGMA, we’ve spent more 50 years helping organizations take a proactive approach to succession. Our Succession Planning Sprint is a streamlined, expert-led session that requires only four hours from your leadership team and delivers a full succession plan in just 30 days.
Let SIGMA help you build a plan before you need it. Complete the form below to learn more.
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1 Challenger & Gray Inc. (2025). CEO turnover report. https://www.challengergray.com/blog/press-releases/ceo-turnover-rises-january-2025
2 Challenger & Gray Inc. (2025). CEO turnover report. https://www.challengergray.com/blog/press-releases/ceo-turnover-rises-january-2025
3 Korn Ferry. (2025, March 12). The great CEO exodus… continues. https://www.kornferry.com/insights/this-week-in-leadership/the-great-ceo-exodus-continues
4 PwC. (2024). 2024 CEO survey: Thriving in the polycrisis. https://www.pwc.com/gx/en/issues/c-suite-insights/ceo-survey.html
5 Businessolver. (2024). 2024 Empathy study: 55% of CEOs say they’ve experienced a mental health issue, up 24 points. Business Wire. https://www.businesswire.com/news/home/20240612177626/en/Businessolver-2024-Empathy-Study-55-of-CEOs-Say-They%E2%80%99ve-Experienced-a-Mental-Health-Issue-Up-24-Points
6 Deloitte. (2022). Employee wellness in the corporate workplace. https://www2.deloitte.com/us/en/insights/topics/leadership/employee-wellness-in-the-corporate-workplace.html
7 Robinson, B. (2024, September 26). Managers report stress and burnout in 2024: How to tell if you’re headed for trouble. Forbes. https://www.forbes.com/sites/bryanrobinson/2024/09/26/managers-report-stress-and-burnout-in-2024
8 Raval, A. (2024). Out of a job but not ready for the golf course: How about joining a board? Financial Times.
9 Fernández-Aráoz, C., Green, C., & Nagel, G. (2021). The high cost of poor succession planning. Harvard Business Review. https://hbr.org/2021/05/the-high-cost-of-poor-succession-planning
10 Fernández-Aráoz, C., Green, C., & Nagel, G. (2021). The high cost of poor succession planning. Harvard Business Review. https://hbr.org/2021/05/the-high-cost-of-poor-succession-planning
11 Deloitte. (2023). Board practices quarterly — CEO succession planning processes. https://www2.deloitte.com/us/en/pages/center-for-board-effectiveness/articles/ceo-succession-planning-processes.html
12 Grassi Advisors & Accountants. (2023). Succession planning: A critical strategy for nonprofit success. https://www.grassiadvisors.com/blog/succession-planning-a-critical-strategy-for-nonprofit-success/
13 Hanover Search. (2025, January 22). Effective succession planning: Strategies for future leadership. https://www.hanoversearch.com/blog/effective-succession-planning-strategies-for-future-leadership/
14 Runn. (2024, August 15). Securing the future: Why succession planning is important. https://www.runn.io/blog/succession-planning/