Retirements, stock price pressures and proximity to scandal are some of the reasons for recent CEO exits.
(NewsNation) — In the first three months of this year, more than 600 chief executive officers left their jobs, either through retirement, resignation or being forced out. That’s a 50% increase from the first quarter of 2023, according to the outplacement firm Challenger, Gray & Christmas.
The company’s Andy Challenger says the big uptick may be linked to the COVID pandemic.
“Companies were loath to let go of their leaders in the middle of a crisis,” he told Marketplace earlier this year. Now, it appears that companies are not so skittish to part with their leaders.
Other reasons for the increased turnover at the top are the retirement of baby boomers and increased stockholder pressure to navigate difficult issues including inflation and supply chain disruptions, as well as social concerns.
Here’s a list of some of the CEOs of major corporations who have recently left their jobs:
Kevin Liles, 300 Elektra Entertainment
Liles has been with the parent company Warner since 2004. In the past year, he has been a defender of Sean “Diddy” Combs, and some inside the company say Liles’ exit could be a direct result, reports TMZ.
Laxman Narasimhan, Starbucks
After less than one year in the position, Narasimhan suddenly stepped down in August. While no specific reason was given, some investors were calling for measures to boost the stock price. And it apparently worked, as Starbucks stock surged by more than 24% after Narasimhan’s resignation and the hiring of Brian Niccol, who was the CEO at Chipotle.
Dave Calhoun, Boeing
Boeing’s well-documented troubles, especially the in-flight structural failure of an Alaska Airlines plane, may have caught up with Calhoun. But in March, he told CNBC that the choice to resign was entirely his own. Calhoun is scheduled to leave Boeing at the end of the year.
Bob Bakish, Paramount Global
Paramount Global’s pending merger with Skydance, as well as the venerable entertainment company’s financial woes, ganged up on Bakish — who reportedly opposed the merger. Bakish had been with Paramount Global, and its predecessor Viacom, since 1977.
Stephen Scherr, Hertz
Scherr, who left Hertz in March, led the company’s ill-fated move toward electric vehicles and the subsequent pivot away from EVs. Hertz had to unload about 20,000 EVs after high repair costs and low customer demand doomed the initiative.
John Donahoe, Nike
Donahoe is credited with guiding the shoe and sportswear giant through the COVID supply chain crisis and upgrading Nike’s direct-to-consumer sales. But analysts point to a lack of new, innovative products under Donahoe’s nearly five years at the helm. Nike’s former president, Elliott Hill, will take over. Hill retired in 2020 after 32 years with Nike.
Kaz Kobayashi, Warner Music Japan
Kobayashi is recognized for his artist-first approach to running the music giant for the past decade. Under his guidance, it became one of the top digital-first music labels in Japan. Kobayashi is helping the firm in the transition to a yet-to-be-named CEO.
Randy Goodman, Sony Music Nashville
A player in the Nashville music scene for more than three decades, Goodman will retire at the end of this year. He’s run Sony’s Nashville operation since 2015, and spent 16 years with RCA before then.
Matteo Fantacchiotti, Campari
The leader of the Italian spirits company behind the once-trendy Aperol Spritz cites personal reasons for leaving the company after just five months as CEO. But the move also comes a week after Fantacchiotti labeled the entire spirits industry as being “still quite soft,” particularly in the U.S.