In brief: CEOs are leaving sooner because the role has become more demanding: Russell Reynolds Associates (2025a) counted 202 CEOs of the world's largest listed companies stepping down in 2024, a 9% increase on the previous year, and the same trend is evident in Australia. The pressures include technological disruption and cybersecurity risk, investor demands for short-term results, ESG commitments and geopolitical and economic challenges. KPMG (2024) reported 26% of Australian CEOs fear failing to meet ESG criteria could jeopardise their positions.
A record year for CEO departures
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, 2025a). The same research found the trend mirrored in Australia, where the ASX 200 also experienced record turnover (O’Kelley et al., 2025), and where CEOs are confronting a multifaceted array of pressures and accountabilities that contribute to earlier exits.
Update (November 2026): The trend has continued. Russell Reynolds Associates recorded 234 CEO departures from the world’s major indices in 2025, an eight-year high and 16% more than in 2024, with Australia recording 34 departures. Average tenure of departing CEOs fell to 7.1 years globally and 6.3 years in Australia (Russell Reynolds Associates, 2026). The first half of 2026 brought some relief, with global departures at a nine-year low, although ASX 200 appointments rose 27% to 14 (Guerdon Associates, 2026).
Global (All Companies) in Red
So let’s take a look at the common challenges facing our CEOs 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. KPMG Australia’s survey of 319 business leaders found cyber security (43%), talent (42%) and regulation (41%) among the top concerns for 2024, with digital technology the theme linking the top five risks (KPMG Australia, 2024a).
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, 2025a).
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 threaten their tenure. Moreover, a significant majority (82%) are prepared to divest from profitable segments if they risk damaging the company’s reputation (KPMG, 2024b). This reflects the growing importance of ethical and sustainable practices in corporate governance.
Update (November 2026): Priorities have shifted since 2024. In KPMG’s 2025 CEO Outlook only 22% of Australian CEOs expected corporate employees back on site full-time, down from 82% a year earlier, 74% expected hybrid work to continue, and 70% named AI a top investment priority (KPMG, cited in Tilo, 2025).
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, complicating offshore growth and necessitating strategic recalibrations (Lowy Institute, 2024). Additionally, domestic issues such as housing affordability and cost-of-living pressures demand attention, further complicating leadership roles.
What this means for leadership teams
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 as to how they are managing to cope with these demands and whether they are feeling pressure in similar ways.
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Further reading:Subtle warning signs of leadership decline and Transitioning from CFO to CEO: essential skills for success.
References
Guerdon Associates (2026) ASX records 27% increase in CEO appointments. 7 September. Available at: https://www.guerdonassociates.com/?p=11694 (Accessed: 6 November 2026).
KPMG Australia (2024a) Keeping us up at night: the big issues facing business leaders in 2024. January. Sydney: KPMG. Available at: https://home.kpmg/content/dam/kpmg/au/pdf/2024/keeping-us-up-at-night-australian-business-leader-challenges-2024.pdf (Accessed: 6 November 2026).
KPMG (2024b) KPMG 2024 CEO Outlook: Australian insights. September. Sydney: KPMG Australia. Figures as reported in Accounting Times (2024) ‘CEOs confident about growth prospects: KPMG’, 19 September. Available at: https://accountingtimes.com.au/economy/ceos-confident-about-growth-prospects-survey-reveals (Accessed: 6 November 2026).
Lowy Institute (2024) ‘Australian CEOs face a wave of geopolitical risks’, The Interpreter, 6 August. Available at: https://www.lowyinstitute.org/the-interpreter/australian-ceos-face-wave-geopolitical-risks (Accessed: 6 November 2026).
O’Kelley, R., Sanderson, L., Langton, S. and Roberts, S. (2025) ‘The transformation of the CEO: Global CEO Turnover Index annual report’, Harvard Law School Forum on Corporate Governance, 13 February. Available at: https://corpgov.law.harvard.edu/2025/02/13/the-transformation-of-the-ceo-global-ceo-turnover-index-annual-report (Accessed: 6 November 2026).
Russell Reynolds Associates (2025a) Record number of CEOs left their roles in 2024 as AI and investor activism drive departures. Press release, 29 January. Available at: https://www.russellreynolds.com/en/about/newsroom/record-number-of-ceos-left-their-roles-in-2024 (Accessed: 6 November 2026).
Russell Reynolds Associates (2026) First-time CEOs chosen amid shortening tenures in APAC. Press release, 9 February. Available at: https://www.russellreynolds.com/en/about/newsroom/first-time-ceos-chosen-amid-shortening-tenures-in-apac (Accessed: 6 November 2026).
Tilo, D. (2025) ‘Australian CEOs reverse expectations on working from home’, HC Magazine, 8 October. Available at: https://www.hcamag.com/au/news/general/australian-ceos-reverse-expectations-on-working-from-home/552269 (Accessed: 6 November 2026).
