In 2024, a record 2,221 CEOs stepped down, the highest number since 2002. This trend is fueled by a many factors: the enduring stress from the pandemic, rapid technological advancements, economic uncertainties, and evolving expectations around diversity, equity, and inclusion (DEI). These challenges have led to increased burnout among top CEOs, which is leading to more heading for the exit.
As reported by Wall Street Journal on April 30th, 2025 by Callum Borchers
Why More CEOs Are Heading for the Exit
Chief executives make big bucks, but many would rather pass the buck than lead a company in the current business climate.
CEOs are leaving their posts at a record clip this year, according to Challenger, Gray & Christmas, which tracks executive departures. Last year 373 public-company chiefs exited, 24% more than in 2023. Among U.S. businesses with at least 25 employees, 2,221 CEOs bid farewell last year, the most since Challenger started tallying the departures in 2002.
Just when they had hoped their headaches might subside following the pandemic, corporate leaders have been hit with a fresh set of challenges: artificial intelligence, tariffs, the possibility of recession and scrutiny of diversity, equity and inclusion efforts, to name a few. Some who struggled to adapt have been shown the door. For others, a career break or retirement sounds pretty good right now.
Don’t cry too hard for these burned-out bosses. Median CEO pay in the S&P 500 hit a new high of $16.4 million last year. But turnover at the top affects the rest of us.
Replacement leaders often put their stamps on organizations by installing new deputies and reorganizing teams. Even if a business is healthy—a big if, since a CEO’s departure can be a sign of trouble—other people may lose their jobs in a shake-up.
A wave of new CEOs also means the fate of our delicate economy increasingly depends on people who are getting up to speed in their roles. And it’s no sure thing that those willing to shoulder this responsibility are the best the business world has to offer.
Executive recruiters and coaches say the leadership issue extends beyond the C-suite. The pipeline of up-and-coming executives is thinning.
As companies reduce middle managers in the name of efficiency, junior executives’ workloads can swell. Some prospects are bailing early or saying “no, thanks” to climbing the management ladder.
Happy on the sideline
In January, David Darragh wrapped up a six-year stint as a director of the Federal Reserve Bank of Atlanta. During that time he was chief executive of Reily Foods in New Orleans and, later, interim CEO of Pod Pack International, a maker of single-serve coffees and teas.
He isn’t rushing back into the fire, despite having plenty of energy at age 60.
“I’m an empty-nester with opportunities to travel with my wife and do things we’ve always wanted to do,” says Darragh, now managing director of the Team Gleason Foundation, which supports people with Lou Gehrig’s disease.
He says he is open to another CEO role and continues to field interest, most recently from a private equity-backed company. But he can afford to be picky.
Executive recruiter Rod McDermott says running a PE-owned business is typically attractive for experienced leaders who like short-term projects. In the current market, though, accepting a mission to take a company public or position it for acquisition can feel like signing up for frustration.
“We’re mired in this place where a lot of private-equity firms can’t exit investments they’ve made,” he says. “I can’t tell you how many senior execs have called me and said, ‘I’m in year eight or nine of what was supposed to be a five- or six-year deal, and I’m getting burned out.’”
Tech companies looking for a veteran leader needn’t waste time wooing former GoDaddy CEO Blake Irving, whom I reached in Mexico. That is where he spends about three-quarters of his time, Zooming into meetings for the three public-company boards he sits on.
His view from the balcony where he took my call is considerably better than what he sees in today’s executive job openings.
“It’s a very difficult time to lead,” he says. “Given all the weird gyrations going on in the economy and with our new administration, it’s really hard for even great leaders to find a true north that they can keep their eyes focused on.”
Off track, on purpose
It’s one thing for Irving, 65, to retreat to the beach after reaching the top of the corporate ladder. It’s another for someone like 49-year-old Ryon Beyer to stop climbing and head for the sand early.
The former principal at a wealth-management firm near Washington, D.C., took a buyout in 2023 and moved his family to Puerto Rico. He advises high-net-worth family offices, earning less money than he used to but making more of his sons’ baseball games.
Rising through the ranks of an investment bank doesn’t appeal to him.
“I look at that and see the hours and the stress,” he says. “I feel there’s a diminishing return on each additional dollar of wealth, and it comes at the expense of not seeing your kids grow up.”
It used to be a given that rising stars would be gunning for the top. Now?
“A lot of organizations are worried about retention of high-potential talent and whether they are even interested in being leaders,” says Elysca Fernandes, director of human resources research and advisory services at HR consulting firm McLean & Co.
In a recent survey of more than 200,000 people at 236 employers, McLean found managers are 1.7 times more likely to report high levels of workplace stress than rank-and-file workers. Fernandes says her firm’s succession conversations with clients now involve strategies to make high-ranking jobs more appealing, such as lightening workloads.
Parson Hicks left her job as a healthcare finance executive last year and works as an independent consultant. At 43, she won’t rule out returning to the corporate world eventually but says she doesn’t care if she never reaches the C-suite.
She wasn’t eating or sleeping well in her previous job and realized she could live comfortably on less than half of what she was making. Since quitting, she has cut back on massages and dining out but says she is happy to make those sacrifices for a fuller personal life.
When her aunt died, she spent two weeks with a grieving cousin. She watched her nephew collect a math award at his eighth-grade graduation.
Hicks isn’t interested in trading those moments for a management job anytime soon.
“Right now, everything seems so volatile,” she says. “Even though I’m a person who excels in crisis, at a certain point it affects your health. I just don’t want that kind of life anymore.”
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