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U.S. CEOs Exit at Fastest Rate in Two Decades as Boards Tighten Oversight

Newly empowered boards are enforcing tougher performance measures as activists press for asset sales and strategic shifts

A plant wall with Procter & Gamble's logo is pictured at the entrance to the company's highly automated cleaning products factory in Tabler Station, West Virginia, U.S., May 28, 2021. Picture taken May 28, 2021. REUTERS/Timothy Aeppel/File Photo
Office buildings are seen in New York City, U.S., July 7, 2023. REUTERS/Amr Alfiky/File photo

Overview

  • At least 41 S&P 500 CEOs have departed so far this year, an annualized pace not seen since 2005 according to The Conference Board and ESGAUGE data
  • Procter & Gamble said Shailesh Jejurikar will replace Jon Moeller as CEO next year, with Moeller moving into the executive chairman role
  • Kenvue’s board ousted Thibaut Mongon in July after a 16.5% stock decline and named director Kirk Perry interim CEO following pressure from hedge funds
  • A Conference Board study found that 42% of last year’s CEO changes occurred at companies in the bottom 25th percentile for shareholder returns, highlighting activist sway over underperformers
  • Boards enriched by independent and diverse members are enforcing stricter performance and ethical standards, fueling sustained executive turnover globally