CEOs are burned out and leaving

Chief executives (CEOs) at globally-listed companies are finding life extremely challenging and turnovers at the top have increased dramatically.

For example, exits from the top jobs at UK-listed companies more than doubled in 2022 from the previous year.

Globally, 175 chief executives stepped down across the world’s top public companies in 2022, up from 133 the previous year (a five-year high).

Research by Russell Reynolds Associates found that 38 FTSE 350 chief executives stepped down in 2022, more than double the 18 exits of 2021.

The global food, energy and financial crises unleashed by the war in Ukraine have hit countries already reeling from the pandemic.

Combine all these with the climate crisis, the supply chain crisis and Brexit, and you can see why CEOs are reeling against the ropes.

“UK companies have experienced a turbulent few years, with the economy recovering more slowly from the pandemic than others in the G7 and the nation having faced additional challenges from supply chain issues created by Brexit,” said Luke Meynell, managing director at Russell Reynolds Associates.

“Several CEOs are stepping down following three years of chronic burnout,” suggests the research.

Healthcare and pharmaceutical companies experienced the most significant departure of CEOs in 2022.

CEOs face a range of new challenges as well as the ‘perfect storm’ caused by Brexit, the pandemic and the war by Russia.

Inflation is a massive challenge for workers as well as companies. Its effect on business supply chains has been devastating.

The pressure on CEOs to achieve net zero targets is also building up.

All of these pressures also hit the boardroom. “Boards worldwide are considering whether they have the right person in place at the top,” says Meynell.

Read more: Are long-standing CEOs a good idea?