Record-high turnover, shorter CEO tenures put succession planning in focus
Global turnover for chief executive officers reached a new record-high in 2025 as tenure for the CEO role continues to shorten, according to a new report from Russell Reynolds Associates (RRA).
RRA's most recent Global CEO Turnover Index Report revealed that 234 CEOs departed their roles in 2025, up by 16% from 2024 and 21% above the eight-year average.
"Elevated CEO turnover is now a fixed feature of today's governance environment," the report read. "This marks the second consecutive year that CEO turnover has reached record levels."
The report attributed the rise in global CEO departures to sharp year-over-year increases across the Asia Pacific and parts of continental Europe.
Germany's DAX recorded eight CEO departures in 2025, up from three in 2024, according to RRA. India's NIFTY 50 and Singapore's STI also saw sharp increases, rising from three CEO departures each in 2024 to seven and five, respectively, in 2025.
CEO turnover in the S&P 500 remained elevated at 59 departures in 2025, edging up by just one from the previous year. The UK's FTSE 100 also held relatively steady, with 14 CEO departures in 2025 compared to 12 in 2024.
"Sustained high levels of CEO turnover should be expected given the environment leaders are operating in today," said Rusty O'Kelley, RRA Co-Lead Board and CEO Advisory Partners in the Americas, in a statement.
"The CEO role has become materially more complex and harder than it has ever been, shaped by ongoing economic and political uncertainty, and relentless scrutiny from investors. As investor expectations recalibrate—often driven by activism—the margin for error has narrowed significantly."
Tenures continue to shorten
The record-high turnover of CEOs globally came as their tenures shortened further, according to the RRA report.
The average outgoing CEO tenure dropped to 7.1 years, down from the 7.4 years in 2024, and well below the 8.3 years recorded in 2021 and 2023.
The proportion of CEOs departing within 30 to 36 months also increased by 79% year-over-year, while appointments lasting less than a year accounted for five per cent of all CEO departures globally.
The shorter tenures are attributed to the pressure faced by recent CEOs to make progress in their organisations within two to three years in the face of major shifts at work, such as rapid technological change.
"Historically, the first couple of years of a CEO's tenure were about clarifying the mandate, setting direction, and building alignment. That grace period has been severely compressed," said Laura Sanderson, RRA EMEAI Co-Lead, in a statement.
"Today, CEOs are expected to demonstrate momentum almost immediately, even while they are still building their teams and navigating increasingly complex external demands."
Planned succession led CEO exits
Meanwhile, the report found that planned successions dominated how CEOs left their organisations in 2025.
According to the report, 32% of CEO departures globally occurred through planned successions, surpassing retirements which accounted for 26% of exits last year.
"Taken together, these patterns suggest boards are investing more time and discipline in succession planning, even amid volatile market conditions," the report read.
"Rather than relying primarily on retirement or reacting to deteriorating performance, directors are increasingly using CEO succession as a strategic tool to manage continuity, renewal, and long-term value creation."
What this turnover means for HR
The faster departure and shortening tenures of CEOs mean upcoming leaders have to be more prepared to face scrutiny when they step into the top role.
According to the RRA, organisations need to start redefining what "readiness" means for CEOs in the wake of compressed CEO lifecycles.
"For first-time CEOs especially, readiness is less about having done the job before and more about learning agility, decision-making under pressure, and the ability to build and mobilize a senior team quickly," the RRA report stated.
Succession planning should also see more focus among firms, and should start three to five years prior to a transition to assess leadership potential, according to the report.
"It also creates space to scenario-plan: preparing leaders not just for continuity, but for activist pressure, transformation mandates, or sudden external shocks," the report read.
Succession planning should also start "building a bench" of multiple qualified candidates over time instead of identifying a single "ready now" candidate.
And the development of CEOs should not stop once they step in, according to the report.
"It is as important to invest in the continuing development of the new CEO as it was to invest in their development when they were a high-potential candidate for the CEO role," it said.
