CEOs at the world’s largest companies have their highest rate of turnover since before the pandemic, according to new figures out this week.

Of the chief executive positions in the FTSE 350, S&P 500 and Euronext 100, 75 changed hands in the second quarter of this year, a figure only just shy of the 79 recording for the same period in 2019.

Research from Russell Reynolds also found that FTSE 100 CEO appointments for the first quarter of this year were up 38% and the overwhelming majority, 73% went to men.

According to Luke Meynell, a CEO expert with Russell Reynolds, corporates are still playing out a trend begun more than a year ago as the business world emerged from the shadow of Covid 19. Figures show that 74% of CEO appointments are internal, though external appointments rose slightly in Q2.

“Much of this,” says Meynell, “is still part of the post-Covid reset strategies, as business adjusts to the realities of a world no longer reeling from the pandemic.”

He adds: “We can expect that boards will look for consistency in future candidates; candidates with a demonstrated ability to deliver within the organisation. We may well see a period of comparative calm in CEO appointments towards the end of the year as boards look for a safe pair of hands to steer them through turbulent waters ahead.”

In with the new

With CEO turnover at a high point, Russell Reynolds’ report says succession plans are a priority. But, the report adds, a change in leadership can be an opportunity as well as a risk.

“When a CEO leaves, it’s a chance for the company to reset and bring in leadership capable of delivering the next phase of its evolution. Companies that can manage CEO turnover effectively can and should emerge stronger than ever,” the report says.

There are, however, concerns about the number of women making it into the chief executive role. More are being appointed but “parity”, says Russell Reynolds, is “decades away.”

According to the data, 27% of the CEOs appointed in the FTSE 100 in the first half of the year were women. For the FTSE 250, the figure is zero. The S&P clocked on 15%, while Euronext 100 leads with 29%.

Laura Sanderson, UK country manager for Russell Reynolds, says business should be “impatient for change”.

“Until half of the people being appointed CEO each quarter are women, there is still room for improvement.”

Sanderson adds that the current “unprecedented change” currently under way at the top of UK business is an “opportunity to rebalance the leadership of the UK, not reinforce old paradigms”.