CEO departures decline globally in second quarter of 2024: report

Within the second quarter of 2024, CEO departures reached their lowest stage for Q2 because the World CEO Turnover Index started monitoring in 2018, in keeping with the Russell Reynolds Associates (RRA).

Solely 51 CEOs left their roles within the second quarter this 12 months, in keeping with the index, barely decrease than the 52 CEOs who departed within the earlier quarter.

Deliberate CEO successions accounted for 23% of all outgoing CEOs within the second quarter, greater than double the six-year common of 11%.

CEO dismissals, alternatively, had been down by greater than half the quarterly common to simply 12% globally this quarter, in keeping with the report.

_{Supply: Russell Reynolds Associates’ World CEO Turnover Index}

In relation to CEO appointments, 78% of them had been inside promotions.

“We’re beginning to see the advantages of a long-term cultural shift in the direction of succession planning and the promotion of inside candidates,” stated Emma Combe, Head of UK Board Observe at RRA, in a statement.

“With the proper preparation, internal candidates regularly outperform even skilled exterior candidates because of their deep institutional information and powerful cultural ties to their organisation.”

Politics affecting boardrooms

As CEO departures dropped to record-low ranges within the second quarter, the RRA additionally discovered that there have been no CEO departures or appointments within the FTSE 100.

_{Supply: Russell Reynolds Associates’ World CEO Turnover Index}

The RRA attributed the shortage of CEO motion to the boards wanting stability amid anticipated political disruptions throughout Europe.

“We’re seeing boards attain for consistency in management to steer them by means of these transitions,” stated Laura Sanderson Co-Head of Europe, Center East & India at RRA, in an announcement.

“With sustainability policy, taxation and progress changing into extremely politicised points, the flexibility of management groups to pivot shortly to the sudden will probably be key.”

Girls as CEOs go up

In the meantime, the report additionally discovered that there have been 5 ladies appointed as CEOs out of 51 world appointments made within the second quarter.

The proportion of girls in CEO positions additionally grew by 7.7% globally from the primary quarter of 2018 to the second quarter of 2024.

“To realize true gender stability on the high, we have to create systemic modifications to how succession is planned, managed, and executed,” the RRA stated in its report. “The scope of CEO candidacy must be widened and organisations have to take the preparation of girls for CEO roles way more critically—investing extra of their ladies leaders, rising pipelines, and addressing bias.”