Technical updates or changes to business models have become a common reason for the departure of a record number of chief executive officers in 2021. According to a report by the consulting firm Russell Reynolds Associates, 1,192 chief executive officers left their posts last year, marking the highest rate in a decade.
The pandemic also significantly influenced the composition of the lists. Agility and adaptability became fundamental in selecting new leaders for companies. In 2020, during the peak period of the pandemic, 58% of chief executive officers were either women or individuals from other ethnic groups. This figure is considered a record high.
One reason for the mass departures of chief executive officers is a breach of planned transformations. Selecting a new leader in such situations helps companies to reshape and adapt to the current business environment.
"The role of the chief executive officer is becoming increasingly complex in today's world, where digital technologies, climate change, cyber security, etc., create new challenges. Consequently, many companies have decided to reconsider their leadership cadres," stated a representative of Russell Reynolds Associates.
