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CEOs In The News is a weekly intelligence briefing for senior leaders, boards, and those shaping the future of business. Each edition curates the most important executive moves, corporate shifts, and leadership trends — with clear insights on why they matter.

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The corporate leadership landscape witnessed significant shifts this past week, marked by high-profile retirements, strategic appointments, and major C-suite reshuffles across Fortune 500 companies. In the healthcare sector, a notable transition is underway at McKesson (No. 9), where Executive Vice President and CFO Britt Vitalone announced his retirement effective May 29 after a distinguished 20-year tenure with the company, including eight years as CFO. Succeeding him is Kenny Cheung, who joins from Sysco (No. 56) where he served as EVP and CFO. This move triggered a ripple effect, with Sysco appointing Brandon Sewell as its interim CFO. At Cigna (No. 13), a long-planned succession will see CEO David M. Cordani, at the helm since 2009, transition to the role of Executive Chair on July 1. Brian Evanko, the current President and COO, will step into the CEO position, a move seen as ensuring continuity in the company's strategic direction. The transportation industry also saw a significant overhaul at Delta Air Lines (No. 70), with the appointments of Dan Janki as the new COO and Erik Snell as the new CFO, alongside Ranjan Goswami as Chief Marketing and Product Officer. These changes come as current COO John Laughter retires after 32 years and CMO Alicia Tillman departs to pursue other opportunities. Finally, in the motor vehicles and parts sector, Thor Industries (No. 415) created a new CIO position, appointing Ryan Biren, who previously served as the company's VP of Corporate Development.

The past year has marked a dramatic acceleration in CEO turnover, a trend that is reshaping the corporate landscape. Data reveals that 2025 saw the highest number of CEO transitions in the S&P 1500 since 2010, with 168 new leaders named. This surge is not confined to a single market cap tier; rather, it reflects a broad-based recalibration of leadership across the board. As the chart below illustrates, CEO succession rates have climbed across large-cap (S&P 500), mid-cap (S&P 400), and small-cap (S&P 600) companies, with small-cap firms experiencing the most significant increase in turnover.

This data underscores a fundamental shift in board behavior. Boards are demonstrating a greater willingness to make leadership changes, even in the absence of poor performance, to realign strategy with evolving market dynamics. The era of the long-tenured, unassailable CEO appears to be waning, replaced by a more dynamic and performance-oriented approach to leadership succession.

A deeper analysis of CEO turnover reveals a significant trend: the narrowing gap between departures at high- and low-performing companies. Historically, forced turnover was predominantly concentrated in the bottom quartile of performers. However, in 2025, the succession rate for S&P 500 companies in the top three performance quartiles (measured by total shareholder return) surged to 12%, a sharp increase from 7% in 2024. In contrast, the rate for bottom-quartile performers was only modestly higher at 14%.

This shift suggests that boards are becoming more proactive and less tolerant of underperformance, even in the short term. The rise in departures among strong-performing companies indicates that CEO succession is increasingly being used as a strategic tool for repositioning a company, rather than solely as a response to poor results. This proactive stance is further evidenced by the rising number of activist campaigns, which surged 23% in 2025, putting additional pressure on boards to act decisively. Historical case studies, such as the ouster of CEOs at companies like General Electric under Jeffrey Immelt or Wells Fargo under John Stumpf, demonstrate that prolonged underperformance or significant reputational damage eventually forces a board's hand. However, the current data suggests a new paradigm where boards are acting with greater urgency, unwilling to wait for a crisis to unfold before making a change at the top.

The current wave of CEO transitions is not only notable for its volume but also for the profile of the new leaders taking the helm. A significant trend is the increasing preference for internal candidates and first-time CEOs. In 2025, 60% of new S&P 1500 CEOs were promoted from within the company, a slight increase from 57% in 2024. This suggests that boards are placing a premium on institutional knowledge and a deep understanding of the company culture. Even more striking is the fact that a staggering 84% of newly appointed S&P 1500 CEOs in 2025 were serving in their first enterprise CEO role, a reversal of the multi-year trend favoring experienced public-company CEOs. This willingness to bet on first-time leaders indicates a shift in board priorities, favoring fresh perspectives and adaptability over a proven track record.

Concurrently, the tenure of CEOs is shrinking. The average tenure for an S&P 1500 CEO fell to 8.5 years in 2025, with nearly 40% of departing CEOs leaving within their first five years. This trend is even more pronounced in the S&P 500, where 45% of CEOs left by the five-year mark. This data points to a new reality for chief executives: a shorter runway to prove their effectiveness and deliver results. Boards are making quicker judgments, and the long-held belief that a CEO reaches peak effectiveness between years four and seven is being challenged by the data.

This new leadership paradigm requires a different kind of support from the board. For first-time CEOs, in particular, the board's role must shift from one of selection to one of active support and development. Investing in the new CEO's development is as critical as the initial selection process itself, helping them to reach peak effectiveness in a compressed timeframe.

The high-stakes game of corporate leadership is fraught with peril, and the past year has provided a series of cautionary tales of CEO failures. These are not just stories of individual careers derailed, but of significant shareholder value destroyed. The recent ousting of PayPal's CEO, Alex Chriss, after less than two and a half years, serves as a stark example. The company's stock plummeted 19% in a single session following the announcement, and now sits 80% below its 2021 peak, a testament to a failed turnaround plan. Similarly, Workday saw the return of its co-founder Aneel Bhusri as CEO, replacing Carl Eschenbach after the stock declined approximately 41% over the past year, with a further 6-8% drop on the day of the announcement. The company has been grappling with concerns about the disruptive potential of AI on its SaaS business model. At C3.ai, new CEO Stephen Ehikian acknowledged a "failure to deliver" and "burning too much money" as the company announced a 26% reduction in its global workforce. The market's reaction was swift and brutal, with shares plummeting. The ongoing saga at Lululemon further highlights the cost of a leadership vacuum. With the company operating without a permanent CEO, its stock has lost nearly half its value in 2025, and it now faces a proxy battle with its founder, Chip Wilson.

These cases underscore the immense pressure on modern CEOs to deliver consistent, short-term results. The market's unforgiving nature, coupled with the disruptive forces of technology and activist investors, has created a volatile environment where even a single misstep can have dire consequences. The data suggests that boards are no longer willing to wait for a turnaround that may never materialize, opting instead for decisive action to protect shareholder value.

The trend of accelerating CEO turnover is not a uniquely American phenomenon; it is a global one. In 2025, a record 234 CEOs exited their roles globally, a 16% increase from 2024 and 21% above the eight-year average. This surge was driven by significant increases in the Asia-Pacific region and continental Europe. The German DAX index, for example, saw eight CEO departures in 2025, up from just three in the prior year, while India's NIFTY 50 saw seven departures, also up from three.

This global trend highlights the increasing pressure on CEOs worldwide to deliver performance and adapt to rapidly changing market conditions. The data suggests that boards are becoming more globally aligned in their expectations and are quicker to make leadership changes when those expectations are not met. The era of the long-serving, seemingly untouchable CEO is giving way to a more dynamic and meritocratic model of corporate leadership, a trend that is likely to continue in the years to come.

The data from the past year paints a clear picture: the role of the CEO is in a state of flux. The accelerated pace of turnover, the shrinking tenures, and the rising prominence of first-time leaders all point to a new mandate for corporate leadership. Boards are demanding more than just steady performance; they are seeking leaders who can navigate disruption, drive innovation, and deliver results in an increasingly volatile global landscape. The cautionary tales of CEO failures serve as a stark reminder of the consequences of failing to meet this new mandate. As we move forward, the ability to adapt, learn, and lead with agility will be the defining characteristics of the successful CEO in this new era of corporate leadership.

CEOs In The News is published weekly for an audience earning $300K to $10MM. It’s intended for educational use to empower executives for the ongoing week. For executive search inquiries, executive branding needs, board advisory services, or newsletter feedback, contact our editorial team. The opinions in this newsletter are not that of its sponsors.

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