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The number of CEO changes at U.S. companies rose 11% from 222 in January to 247 in February, the second-highest total for any month since Challenger began tracking CEO changes in 2002. It is virtually the same as the 248 CEO exits that occurred in February 2024, the current monthly record, according to a report released Tuesday by global outplacement and business and executive coaching firm Challenger, Gray & Christmas.
“Companies appear to be reacting to the barrage of indicators suggesting the potential for difficult times ahead, including falling consumer confidence, the impact of tariffs and rising prices,” said Andrew Challenger, Senior Vice President and labor expert for Challenger, Gray & Christmas.
So far this year, 469 CEOs have left their posts, a 6% increase from the 442 CEOs who left their positions through February 2024.
WOMEN CEOs
The rate of new CEOs who are women dropped significantly to 23% from 26% in January. It is down from 27.4% of women who took over the CEO role in January and February of 2024.
“Companies in 2025 are shying away from DEI efforts in light of the new administration’s efforts to subvert them. This will undoubtedly impact the kinds of executives who enter leadership pipelines at companies in the United States,” said Challenger.
Meanwhile, 24% of CEOs who left their positions were women this year and 54% of those women were replaced by men. Of the 360 men who left their roles so far in 2025, 17% of them were replaced by women.
During the same period in 2024, 22% of CEOs who left the CEO role were women, and 43% of them were replaced by men. Women replaced 22% of the 319 men who left their posts in January and February 2024.
“Our data suggests that fewer women are staying in their CEO roles, and more are being replaced by men in 2025,” Challenger added.
INTERIM LEADERS
Interim leadership has soared in 2025. Of all incoming CEOs this year, 23% of them were named on an interim basis, compared to 8% during the same period last year.
NOTE: These are CEOs who were originally named on an interim basis. Challenger also tracks if those CEOs became permanent at some point.
Of the 32 interim CEOs named in January and February of 2024, 8 of them became permanent. In the first two months of 2025, of the 97 interim CEOs, 18 were named permanently.
WHAT INDUSTRIES ARE SEEING TURNOVER?
The Government/Non-Profit sector continues to lead in CEO exits, reporting 47 transitions in February 2025. This is a 7.8% decline from January’s 51 departures and a 16.1% decrease from February 2024’s 56 exits, though the majority (41) of transitions remain concentrated in the Non-Profit space.
The Technology sector saw continued high turnover, with 31 CEO exits in February, a 24% increase from January’s 25 and consistent with February 2024’s 31 exits—highlighting persistent volatility in tech leadership.
The Health Care/Products industry experienced an uptick in CEO departures, with 26 in February, up 44.4% from January’s 18, and also a 44.4% increase over February 2024’s 18 exits. Meanwhile, Hospitals reported 15 exits in February, a 50% increase from January’s 10 and matching the February 2024 figure.
The Entertainment/Leisure industry reported 19 CEO departures in February, up 18.8% from January’s 16, and a 72.7% increase from February 2024’s 11.
The Financial sector recorded 16 CEO transitions in February, a modest 6.7% rise from January’s 15 and a 14.3% increase compared to February 2024’s 14. Similarly, FinTech saw 5 exits, down slightly from 6 in January (-16.7%) but down 28.6% from February 2024’s 7.
In Construction, CEO exits dropped to 4 in February from 9 in January (-55.6%), and were also down 20% from February 2024’s 5.
The Energy sector recorded 8 CEO transitions in February, double the 4 reported in January (+100%) and unchanged from February 2024’s figure.
The Retail industry saw 8 CEO departures in February, a 60% increase from January’s 5 and a 100% rise from February 2024’s 4.
Other industry trends:
- Automotive: 3 CEO exits in February, unchanged from January, and down 25% from February 2024’s 4 exits.
- Pharmaceutical: 3 exits in February, a 50% drop from January’s 6 and down 72.7% from February 2024’s 11.
- Real Estate: 3 CEO departures in February, down 40% from January’s 5 and a 0% change from February 2024.
- Services: 14 CEO transitions in February, up 27.3% from January’s 11 and a 40% increase from February 2024’s 10.
- Consumer Products: 10 exits in February, a 42.9% increase from January and down 23.1% from February 2024’s 13.
- Chemical: 4 CEO exits in February, up from 1 in January (+300%), though down 33.3% YoY.
- Media: 2 exits, steady with February 2024 and January.
WHERE IN THE US ARE CEO EXITS HAPPENING?
The West region continues to lead in CEO transitions, reporting 87 departures in February 2025, a 20.8% increase from January’s 72 and a 35.9% jump from 64 in February 2024. California again led all states with 32 CEO exits in February, up 39.1% from January’s 23 and a 60% increase from the 20 recorded the previous year. Texas followed with 23 CEO transitions, also up from January’s 21 (+9.5%) and up 43.8% from 16 in February 2024. Washington saw 6 exits in February, up from 4 in January (+50%) and down 64.7% from the 17 recorded a year ago.
The East region experienced 58 CEO exits in February 2025, a slight 1.8% increase from January’s 57 and a 23.4% rise from February 2024’s 47. New York recorded 17 CEO transitions, up from 14 in January and from 14 the prior year (+21.4%). Massachusetts saw 9 CEO exits, slightly down from 10 in January and from 12 in February 2024 (-25%). Pennsylvania reported 12 CEO transitions, down from January’s 16 but still up 50% from 8 a year ago.
The South reported 57 CEO departures in February 2025, marking an 18.8% increase from January’s 48 and a 21.3% rise from 47 exits in February 2024. Florida led the region with 13 CEO changes, steady compared to January and equal to the 13 recorded a year earlier. Virginia saw 7 CEO exits in February, up from 4 in January (+75.0%) but down 61.1% from 18 a year ago. Meanwhile, Tennessee reported 9 CEO departures, an 80% increase from January’s 5 and up from 4 in February 2024.
The Midwest recorded 45 CEO departures in February 2025, a slight decline of 4.3% from January’s 47 but a 25.0% increase from February 2024’s 36. Illinois led with 10 CEO transitions, up from 8 in January (+25%) and from 6 in February 2024 (+66.7%). Michigan reported 2 CEO exits, a sharp drop from January’s 6 and from 4 the previous year. Ohio saw a strong rebound with 10 CEO departures in February, more than doubling January’s 4 and significantly up from 4 a year ago.
REASONS FOR EXITS
Challenger tracks CEO departures based on the language used in announcements. The leading reason for CEO transitions year-to-date remains “Stepped Down,” with 87 such exits reported in February, bringing the 2025 total to 177. While slightly down from January’s 90, it remains the most commonly cited reason.
“Retired” continues to be the second most frequent reason, with 43 CEOs stepping away in February, bringing the year-to-date total to 105. This reflects a gradual continuation of retirement-driven turnover seen across sectors.
“No Reason Given” saw a sharp spike, with 64 CEO exits in February, nearly triple January’s 22, pushing the YTD figure to 86. This increase may indicate less transparency in announcements or a higher volume of unplanned or confidential transitions.
“New Opportunity” was cited 20 times in February, up from 17 in January, bringing the total for the year to 37.
“Resigned” was also reported 20 times in February, an increase from January’s 16, and now totals 36 for the year.
“Interim Period Over” accounted for 4 exits in February, slightly down from 6 in January, bringing the YTD total to 10.
Less frequent but notable reasons in February included:
· Acquisition/Merger: 6 CEO exits, up from 2 in January (YTD: 8)
· Differences With Board: 1 departure (YTD: 2)
· Terminated: 1 exit (YTD: 2)
· Bankruptcy: 1 exit (first reported in 2025)
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Posted: Wednesday April 2, 2025
