Hospital CEO exits climb 70% year over year

Companies announced 789 CEO exits in the first five months of 2023, with 80 occurring in hospitals. 

The finding comes from a June 22 report from Challenger, Gray & Christmas, an executive coaching firm that examines CEO turnover in the U.S. on a monthly basis. 

The 80 moves within hospitals from January through May were up 70 percent from the 47 recorded in the same period of 2022. The number marks the third-highest year-to-date total across all 29 industries and sectors measured.

"Hospital systems are struggling in a number of areas post-pandemic. Talent shortages, retention, and wages for staff are an issue, while cost of care is rising. Many systems are struggling to operate, and new leadership is needed to attempt to turn things around," Andrew Challenger, workplace expert and senior vice president of Challenger, Gray & Christmas, said in the report. 

Across all 29 industries and sectors measured, the 789 CEO exits recorded in the first five months of 2023 were up 18 percent from the 668 CEOs who left their posts in the same period in 2022. It is the highest January through May total on record. May's specific total (224) is the highest total for a month since Challenger, Gray & Christmas began tracking CEO exits in 2002. 

"It is certainly significant that so many CEOs are leaving, especially since the last time we saw numbers this high was just prior to COVID-19 lockdowns. Certainly, companies are dealing with some uncertainty heading into the second half of the year surrounding recession concerns, disruptive technology, and high interest rates," Mr. Challenger said.

Across all industries, most CEOs (182) retired in the first five months of 2023, while another four CEOs left amid professional misconduct allegations, such as fraud or mismanagement of funds. More than 200 chief executives and companies did not give reasons for CEO exits.






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