Speaking of being replaced, according to the most recent stats (2023), CEO turnover in Canada (and beyond) is at an all-time high. As well, voluntary resignation in other roles in the C-suite, across all industries, is also escalating significantly (Mercer). Tracking down the reasons for leaving are somewhat obscure given most public statements are typically “boilerplate.” However, it is noteworthy that this turnover trend is seemingly going to increase given that a recent survey suggested that 70% of CEO’s are looking to leave their current position for a multitude of reasons – with the majority expressing the desire to improve their mental health and overall well-being. It is well known that CEO attrition decreased through the pandemic. That was to be expected given that decision-makers are typically reluctant to make high-level “hire and fire” decisions during times of uncertainty. However, with covid in the rearview mirror, boards and the like are now thinking they have some “breathing room” and are becoming more proactively looking for results despite the current high inflation and interest rates. These days, directors expect CEO’s to be able “see around corners.” And if that were not enough, they also want operating leaders to navigate increasing investor demands, more regulations, technology escalation and a host of other hurdles. As we here at Grandlark Group see it, fewer and fewer CEO’s have the right psychology to handle these trials. Certainly, first-rate CEO’s and other executives do exist. But they are definitely becoming a rarer breed – something that boards would do well to consider in their decision making.
And as a last thought on the matter, it might be a good idea to note there 40% of CEO’s fail in the first 18 months in office – especially if the new CEO follows a popular and successful predecessor.
Perform better!
