The rate of new CEOs who are women stayed at just 25% during the month of May, equal to the percentage seen in April and below the 29% of new CEOs who are women appointed between January and May 2024.
Meanwhile, 56% of the women who are leaving their roles are being replaced by men, compared to 48% during the same time period last year, global outplacement and executive coaching firm Challenger, Gray & Christmas reports.
Furthermore, women are replacing outgoing male CEOs 20% of the time in 2025, compared to 23% last year.
“This is an alarming trend,” said Andrew Challenger, Senior Vice President and labor expert for CGC. “The gains women have made over the last decade, which remain far from equitable, are beginning to slip in the current political environment which includes rhetoric that repudiates diversity, mentorship, and equity. While we believe companies are still invested in these things – as companies that do have an easier time retaining and attracting talent and have higher engagement and productivity – the decline of rising women CEOs is troubling.”
“The gains women have made over the last decade, which remain far from equitable, are beginning to slip in the current political environment which includes rhetoric that repudiates diversity, mentorship, and equity.”
Overall, the number of CEO changes at U.S. companies fell 21% from 214 in April to 168 in May. This is a 41% increase from the 119 CEO exits that occurred in the same month one year prior, according to a report released Thursday by CGC.
Long-tenured CEOs are leaving their posts this year. Through May, the average tenure for a departing CEO is just over 12 years, the highest tenure since 2017, when tenures averaged 12.7 years. “The epic changes and uncertainty facing many companies right now may be the exit point for long-tenured CEOs as companies deploy new strategies requiring new leadership,” said Mr. Challenger.
Through May, 1,028 CEOs left their posts, up 19% from the 867 CEOs who left their posts during the same period last year. This represents the highest YTD total on record.
Challenger began tracking CEO exits in 2002.
INTERNAL v. EXTERNAL CEO REPLACEMENTS
Challenger has tracked whether new CEOs are internal or external for 929 replacement CEOs so far in 2025. Companies are virtually split on bringing in an external hire (49.99%) versus growing someone internally (50.01%).
