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  1. Executive News & Insights
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  3. What’s Causing CEO Turnover, and How Can You Respond?
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What’s Causing CEO Turnover, and How Can You Respond?

Discover a former CEO’s take on the root causes of executive attrition, five qualities of a successful CEO, and best practices for succession planning.

April 21, 2025 | Sahar Ehsanyar

female ceo walking out of an office

CEO turnover has been surging in recent years, with no signs of slowing down soon. In 2024 alone, global CEO departures increased by 13% compared to 2023, with 202 recorded departures. But this trend isn’t driven exclusively by performance pressures or board decisions. During a recent webinar held by CEO Academy, a SHRM Company, former Nutrisystem CEO and current executive coach Dawn Zier noted that “CEO burnout is a real thing,” with many executives choosing to step down and fewer qualified CEOs willing to step up.

In today’s fast-paced and stressful business world, even first-time CEOs who are successful are stepping down due to the constant changes, pressure from stakeholders, and emotional strain that come with leading. What are the root causes of this surge in executive turnover, and how can organizations prepare for what comes next?

Causes of CEO Attrition 

Being a CEO has never been easy, but today’s leaders are navigating a perfect storm of challenges that’s making the role even more difficult. Zier said the last five years have been particularly brutal due to the pandemic, which resulted in the transition to working from home, followed by the return to the office. Other factors contributing to CEO attrition include shifting employer-employee dynamics, geopolitical instability, the rapid rise of AI, and an ongoing war for talent.   

In the decade before the pandemic (2009-2019), things were different. Leaders could focus on internal strategies and operational excellence.  

“The CEO could spend most of his or her time focusing on driving growth, driving margins, driving profits,” Zier said. “The world was stable, and our focus really was to make sure that our house was in order." However, the current business world demands that CEOs dedicate significant attention to risk management. This shift in focus can sometimes divert attention away from core priorities, making leadership more complex than ever before.

In the face of escalating pressures, CEOs often find themselves at a crossroads: Some choose to opt out on their own terms, while others are asked to step down due to rising performance expectations and shifting board priorities.

Read SHRM’s research series on The Evolution of the C-Suite.

 

Competencies of a Successful CEO

Today’s CEOs are expected to lead through constant change, manage risk, and make high-stakes decisions, all while navigating the uncertainty and ambiguity that define today’s business environment. As such, leaders must be adaptable, emotionally intelligent, and deeply grounded in purpose. As Zier noted, “You need different leaders for wartime than you do for peacetime.” The most effective CEOs possess what Zier calls the “five X-factors”:

  1. Lead Without a Compass: CEOs must be agile and ready to pivot, making informed decisions even without 100% of the information. In today’s fast-changing environment, adaptability is key.
  2. Inspire Confidence amid Uncertainty: A strong CEO helps their leadership team embrace ambiguity. That means fostering a culture of flexibility, adaptability, and openness to change. 
  3. Relentlessly Prioritize and Follow Through: A successful CEO walks the talk because what they do matters — employees will take notice. If a leader claims something is a priority, such as investing in AI, that commitment should be clearly reflected in strategic plans and budgets. This will help your leaders understand what takes priority as well.
  4. Manage Risk Without Getting Stuck: Enterprise risk is now a constant, not a crisis. Successful CEOs keep the business moving forward during moments of decision-making. It’s not about making the perfect decision — it’s about making a decision that’s right for your team. “The key to being a successful CEO is to make sure he/she is not paralyzed by that managing that risk,” Zier said.  
  5. Build “Followership” and Purpose: Strong CEOs hire and develop top talent, but more importantly, they create a sense of shared purpose. Especially during uncertain times, great leaders unite their teams around a shared mission, build loyalty, and make people feel like they’re part of something meaningful.

While mastering these core competencies is essential, long-term success also depends on thoughtful succession planning.

Succession, Strategy, and What Really Matters

Effective succession planning and strategic leadership depend not just on skill, but on trust between the CEO and the board. Transparency and earned trust are essential, especially during leadership transitions. New CEOs must have the space and support to build that trust with key stakeholders across the organization over time.  

To navigate today’s uncertainty and shifting external forces, the most effective leaders stay grounded by focusing their energy on what’s within their control. 

“Focus on the controllables,” emphasized Zier. “It’s easy to get caught up in overthinking and worrying about factors beyond our control, but that is not optimized energy.  

“As CEOs, we must recognize what we cannot control and shift our energy toward what we can control to achieve the best outcomes.”  

View SHRM’s Engaging in Sucession Planning toolkit for more insights

 

Sahar Ehsanyar is specialist, executive content at SHRM.

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