Is the CEO Great Resignation Here?
Audio version available here:
Length: approx. 1 min. 40 sec.
Through the curious decline in jobless claims despite extensive corporate layoffs increasing, a recent phenomenon has mostly passed under peoples’ radars: the CEO Great Resignation.
When did this start? As reported by Challenger, Gray & Christmas, Inc. 2023 saw a record rate of CEOs leaving their companies. Compared to 2022, CEO resignations increased 55% at 1,914 for the whole year. This number comprises the most CEO exits seen since 2019, and is the highest ever since Challenger “began tracking [them] in 2002”. May 2023 saw the most exits with 224, and December follows closely behind with 204.
What does this mean? Senior Vice President of Challenger, Gray & Christmas, Inc. Andrew Challenger says that surges in CEO exits often precede “large economic shifts”. However, many companies are described to be in “relatively stable waters”, implying that normal succession plans are in place.
What about their employees? We previously reported that large companies have announced plans for significant talent trimming following a hiring surge on the tail end of the pandemic. Despite this, initial claims for unemployment insurance went down by nearly 16,000. However, according to economist Ian Shepherdson, the trend will not likely become clear until February.
Since 2024 is still in its early stages, it may take some more time for companies to stabilize. Will CEOs continue to leave their companies? Will their employees face further layoffs? It’s important for business owners to stay updated on these trends, so make sure to follow XQ CPA’s blog and social media. We bring you relevant economic news so you can make informed decisions for your business.
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