CEO turnover is on the rise, even among companies that are performing well. According to a recent report from The Conference Board and partners, the rate of CEO successions in the S&P 500 for firms in the top three performance quartiles increased from 7% in 2024 to 12% in 2025. In contrast, the turnover rate among bottom-quartile performers was slightly higher at 14%.
Ariane Marchis-Mouren, a coauthor of the report and Senior Researcher at The Conference Board, noted that this trend reflects a broader shift in CEO turnover patterns. Many leadership changes in 2025 were driven by strategic realignments and succession planning rather than immediate performance issues. This suggests that boards are taking a more proactive approach to leadership transitions.
Increase in External CEO Appointments
The study also highlights a significant rise in external CEO appointments. In the S&P 500, external hires nearly doubled from 18% in 2024 to 33% in 2025, marking the highest level of external appointments in eight years. This shift indicates a growing emphasis on fresh perspectives to tackle new challenges and transformational efforts.
Chuck Gray, Co-Leader of the US CEO and Board Practice at Egon Zehnder, commented, “In 2025, boards appeared to take a more proactive stance—executing transitions deferred during recent volatility, initiating leadership changes to adjust strategy, and reshaping executive teams to address evolving market and stakeholder expectations.” This year, the projected annual rate of CEO successions in the S&P 500 is expected to reach 13%, compared to 10% in 2024.
Longer CEO Tenure and Gender Diversity Stagnation
Interestingly, the average tenure of departing CEOs has increased. In the S&P 500, departing CEOs served an average of 9 years, up from 7 years in 2024. This trend reflects both a delayed wave of retirements and boards adjusting to a rapidly changing business environment. Blair Jones, Managing Director at Semler Brossy, emphasized that many long-serving leaders are stepping down in orderly transitions, even as others are replaced due to shifting market conditions.
On the gender diversity front, the representation of women CEOs has plateaued after years of steady growth. The number of women leading S&P 500 companies remained unchanged at 48 in both 2024 and 2025. In the Russell 3000, women account for 7.7% of CEOs, a slight increase from 7.6% in the previous year. These modest changes reflect a pause in progress after gains made between 2020 and 2024.
This report underscores a pivotal moment in corporate leadership dynamics. Boards are increasingly prepared to make significant changes, seeking leaders who can navigate complex challenges and drive transformation. As the business landscape evolves, the focus on fresh leadership perspectives may redefine corporate governance and strategy in the years to come.
