Report also reveals shorter average CEO tenure, dominance of internal hires
Turnover of global CEOs remains elevated as tenures continue to shorten, according to a new report that attributed the situation to persistent scrutiny of the top executive position amid disruption and uncertainty.
The Global CEO Turnover Index by Russell Reynolds Associates (RRA) reported 176 incoming CEOs and 174 outgoing CEOs worldwide for the year-to-date through the third quarter of 2025.
This is slightly below the figure recorded last year, which was a record-high 188 incoming CEOs up to the end of the third quarter of 2024.
The RRA attributed the elevated CEO turnover rate to increasingly deliberate and confident leadership decisions from company boards.
"High turnover is becoming a feature of modern governance, reflecting directors' resolve to maintain strategic alignment amid ongoing disruption and uncertainty—and intensifying investor activism," it noted.
Shorter CEO tenure reported
As turnover remains elevated, tenure continues to shorten for outgoing CEOs this year, according to the report.
The average outgoing CEO tenure has declined to 7.2 years to the end of the third quarter, down from 7.3 years in the same period in 2024, and below the 8.4-year highs recorded in 2021 and 2023.
"This slow but steady decline in global tenure signals that amid ongoing disruption and uncertainty, boards are closely monitoring CEO effectiveness and responding with precision, prioritising agility and adaptability," the report read.
"They are making CEO changes earlier in the CEO lifecycle, being quick to move if company performance dips or internal strategic alignment starts to weaken."
According to the RRA report, the shorter tenures may also be attributed to a shift in board behaviour amid stronger shareholder and activist expectations.
Internal hires dominate CEO turnover
Meanwhile, internal hires continue to dominate CEO turnover, with 72% of incoming CEOs globally being internal appointments.
The findings indicate that boards are confident in their internal pipelines, with succession being managed as the ongoing process of developing internal talent while staying open to external CEOs.
"Appointing an external CEO can serve as a clear signal for strategic renewal and the introduction of fresh perspectives," the report read.
"While such appointments are sometimes voluntary, directors are also increasingly appointing external CEOs to drive change when transformation or activist pressure requires it."
