Why CEOs Are Leaving Sooner: The Pressures Reshaping Leadership in Australia

26.03.25 11:38 AM - By Linq HR

Recent analyses reveal a significant uptick in CEO departures globally, with 202 CEOs from the world's largest listed companies stepping down in 2024—a 9% increase from the previous year (Russell Reynolds Associates, 2025). This research showed the trend is mirrored in Australia, where CEOs are confronting a multifaceted array of pressures and accountabilities that contribute to earlier exits.


Global (All Companies) in Red


So lets take a look at the common challenges facing our CEO's and in turn many in their leadership teams;


Technological Disruption

The rapid evolution of technology, particularly advancements in artificial intelligence, demands that CEOs not only integrate these innovations into their business models but also manage associated risks such as cybersecurity threats and digital transformation challenges. A survey highlighted that digital technology concerns, including regulation and IT system failures, rank among the top risks for CEOs in 2024 (Bell Partners, 2024).


Investor Activism and Performance Expectations

Investors are increasingly assertive, demanding robust financial performance and strategic agility. This heightened scrutiny places CEOs under constant pressure to deliver immediate results while navigating long term growth strategies. The record number of CEO turnovers in 2024 underscores the impact of investor expectations on leadership stability (Russell Reynolds Associates, 2025).


Environmental, Social, and Governance (ESG) Commitments

In Australia, the emphasis on ESG standards has intensified. Over a quarter of Australian CEOs (26%) fear that failing to meet ESG criteria could jeopardise their positions. Moreover, a significant majority (82%) are prepared to divest from profitable segments if they pose reputational risks (KPMG, 2024). This reflects the growing importance of ethical and sustainable practices in corporate governance.


Geopolitical and Economic Challenges

Australian CEOs are navigating a complex landscape marked by geopolitical instability and economic uncertainties. Trade restrictions and national industry policies are evolving, creating barriers for global expansion and necessitating strategic recalibrations (Lowy Institute, 2024). Additionally, domestic issues such as housing crises and cost of living pressures demand attention, further complicating leadership roles (Australian Financial Review, 2024).


These converging factors create an environment where the role of a CEO is more demanding than ever, contributing to the trend of earlier departures as leaders grapple with the complexities of modern business leadership. Their leadership teams are also dealing with these complexities and the question remains open about how they managing to cope with these demands and whether they are feeling pressure in similar ways.


References

Australian Financial Review, 2024. ‘Australia is falling behind’: 55 CEOs demand election action. [online] Available at: https://www.afr.com/policy/economy/australia-is-falling-behind-ceos-demand-election-focus-on-red-tape-20241213-p5ky3o 


Bell Partners, 2024. CEOs Name Their Top Risk for 2024: Why It Should Be Your Concern Too. [online] Available at: https://www.bellpartners.com/insights/ceos-name-their-top-risk-for-2024-why-it-should-be-your-concern-too/ 


KPMG, 2024. KPMG CEO Outlook 2024 | Australia. [online] Available at: https://kpmg.com/au/en/home/insights/2024/09/ceo-outlook-2024-australia.html 


Lowy Institute, 2024. Australian CEOs face a wave of geopolitical risks. [online] Available at: https://www.lowyinstitute.org/the-interpreter/australian-ceos-face-wave-geopolitical-risks 


Russell Reynolds Associates, 2025. Record number of CEOs left their roles in 2024 as AI and investor activism bite. [online] Available at: https://www.russellreynolds.com/en/about/newsroom/record-number-of-ceos-left-their-roles-in-2024