It has been a “turbulent few years” for chief executives, according to research which shows turnover among corporate leaders has rocketed.

Russell Reynolds, an international headhunting firm, finds that turnover among FTSE 350 CEOs jumped by 111% in 2022, with 38 leaders moving compared with just 18 in the previous year. The FTSE 100 on its own saw a 150% rise in turnovers.

Globally, CEO exits have also increased, with 175 CEOs among UK, US and Australian markets changing roles last year. This is a five-year high, according to Russell Reynolds, which notes that the number was 39% up on the previous 12 months.

But it was matched by change at the top of S&P 500 companies, with 39% shifting position. Euronext, meanwhile, saw a 50% decrease in CEO change, a figure that may suggest more stability in European markets.

The figures come as part of Russell Reynolds Global CEO Turnover Index, which tracks leadership changes at many of the world’s largest companies.

According to Luke Meynell, managing director at Russell Reynolds, the movement in the UK may be a result of significant political changes that have contributed to business difficulties.

UK companies have experienced a turbulent few years, with the economy recovering more slowly from the pandemic than others in the G7—and the nation having faced additional challenges from supply chain issues created by Brexit.

“This great level of change and instability may have combined to result in higher CEO turnover, which may have been more pronounced among mid cap UK firms due to greater exposure to the UK market,” Meynell said.

Pressure on the C-Suite

A number of reports have indicated rising CEO turnover in the years since the pandemic following disruption to the global economy. Many companies found themselves in difficulties, increasing the pressure on CEOs to adapt.

However, there were already signs before the emergence of Covid-19 that CEOs were moving on more quickly, perhaps driven by growing ethical concerns, in particular those emerging from the #MeToo movement.

Consumer attitudes have changed too, with businesses increasingly expected to have a societal purpose and address climate change.

These would not have been the only factors. The pandemic has produced a focus on digital business, placing a premium on CEOs with the right skillsets. For some companies, it has proved easier to bring in new leadership rather than wait for incumbents to adapt.

In September last year, Anjli Raval of the Financial Times wrote that Meynell said the “clearout” mirrored the high turnover that took place after the 2008 financial crisis.

Raval wrote that CEOs now face a huge number of issues that threaten success, including supply chain issues, record levels of inflation, the war in Ukraine, talent shortages, digital transformations and, potentially, the UK’s culture wars. She writes the “sheer number of factors today that could potentially derail companies and their leaders is unusual.”

Supply chain pressures and reacting to the pandemic may have contributed to a 180% increase in CEOs turnover in healthcare and pharmaceuticals. Some sectors will be experiencing greater disruption than others.

Luke Meynell says: “Having been in survival mode since 2020, boards are looking to the future: re-evaluating their strategic goals as they adapt to a changing environment. The challenges which CEOs must now address have multiplied considerably, including achieving net zero, high inflation, ongoing supply chain issues, and the possibility of restructuring given the uncertain economic outlook.

“Accordingly, boards worldwide will be considering carefully whether they have the right person in place at the top.”