A Record Number of CEOs Stepped Down Last Year. Here's Why — and How the Rules of Leadership Are Shifting.

Key Points

• In 2024, a record 327 CEOs stepped down as boards and investors shifted focus from big ideas to leaders who can execute strategies and deliver tangible results.
• With leadership development budgets cut by 70%, nearly half of managers say their companies aren’t preparing future executives adequately, highlighting the need to revamp development programs around cross-functional experience and high-stakes assignments.
• Only 35% of organizations have formal succession plans, leading to costly external CEO hires that are 84% more likely to fail within three years, underlining the importance of cultivating an internal leadership bench.
• Companies are adopting a skills-first approach and hiring from other industries to bring fresh perspectives and adaptability, expanding their executive talent pool nearly tenfold.

In 2024, U.S. companies witnessed an unprecedented wave of CEO departures, with 327 executives exiting by November — a level of turnover unseen since 2010. This wave of CEO departures reflects a bigger shift in corporate leadership, as boards and investors are no longer content with big ideas alone; they want leaders who can turn strategy into action.

Consider Intel's former CEO, Pat Gelsinger. Despite ambitious plans to revitalize the company's chip manufacturing dominance, Gelsinger's strategies were deemed too costly and slow, leading to his resignation in late 2024. Such high-profile exits highlight a growing intolerance for leaders who cannot translate vision into tangible results.

This trend signals a broader transformation in leadership expectations. The era of the untethered visionary is fading, replaced by a demand for CEOs who combine strategic foresight with operational excellence.

Related: Are You A Visionary, an Executor or a Processor? Why Your Company Needs All 3 to Succeed.

The execution imperative

Historically, charismatic leaders who could articulate compelling visions were highly sought after. However, recent studies indicate a shift in the traits boards prioritize. According to research from the Harvard Law School Forum on Corporate Governance, there's an increased demand for CEOs with skills in operations and strategy, and a decreased emphasis on interpersonal or "soft" skills.

Rapid technological change, global instability and evolving customer expectations have raised the bar for leaders, who need to steer the organization through complexity and deliver results.

If you're serious about building a leadership bench that can execute under pressure, it's time to stop relying on outdated playbooks. Execution-first leadership doesn't happen by accident — it's the result of intentional development, smarter hiring and aligned incentives. Here's how to make it real inside your company.

1. Revamp leadership development programs

In 2024, leadership development budgets took a significant hit, with average allocations dropping by 70% compared to the previous year. With leadership development budgets slashed, many companies have cut back — or cut out entirely — the programs that prepare mid-level managers for executive roles. As a result, more leaders are stepping into the C-suite without the cross-functional experience or strategic problem-solving skills they need to succeed.

This gap shows up in the numbers. In a recent survey, 45% of managers said their companies aren't doing enough to develop future leaders. Additionally, only 8% of managers believe their leadership programs actually work. The message is clear: Organizations need to take a hard look at their leadership pipelines and start investing in them again.

Companies can close this gap by creating development programs that give leaders real-world experience, from cross-functional rotations to mentorship with senior executives to high-stakes problem-solving assignments. When these initiatives are built into talent strategies, they help grow leaders who can think big and get things done.

Related: Kevin O'Leary Says This Is the One Skill He Looks For in a Leader — But It's 'Almost Impossible to Find'

2. Implement effective succession planning

Even though succession planning is critical, many organizations still aren't ready when leadership changes happen. Research from the Association for Talent Development (ATD) shows that just 35% of companies have a formal plan in place. Without one, companies often scramble to fill roles, turning to outside hires who might not fit the culture or long-term strategy.

The costs of poor succession planning add up fast. Studies show that external CEO hires not only cost 15% more than internal promotions but are also 84% more likely to leave within three years — often because they're not the right fit. It's a clear reminder that ignoring internal talent development can hurt both the bottom line and leadership stability.

The better approach is to focus on your existing bench. That means identifying high-potential employees early and giving them opportunities to stretch their skills, work across teams and learn from seasoned leaders. Companies that invest in their own people don't just save on recruiting costs — they keep their culture intact and avoid the disruption that comes with an outside hire who might not stick.

3. Broaden talent acquisition strategies

More companies are looking outside their own industries when hiring executives — and for good reason. Leaders with experience in different sectors bring fresh ideas and new ways of thinking that can spark innovation and help businesses handle tough, unfamiliar challenges.

A report by JRG Partners points out that bringing in leaders from other industries can give companies an edge. These executives tend to be adaptable, used to working across different markets and able to apply what they've learned in one sector to another. They also know how to get up to speed fast in unfamiliar territory.

LinkedIn research shows that focusing on skills instead of traditional qualifications can completely change the way companies hire — and open the door to a much bigger talent pool. In fact, taking a skills-first approach can expand the number of potential candidates by nearly tenfold worldwide.

Related: How to Develop the Best Leadership Mindset to Execute Your Strategy

To make the most of this, companies can:

• Hire for skills, not just resumes: Focus on what candidates can do, not just where they've worked or what degrees they hold.

• Use AI and data smartly: Tap into tech tools that help spot transferable skills and uncover talent from outside the usual places.

• Build a more inclusive hiring culture: Stay open to people with nontraditional backgrounds and career paths — they often bring fresh ideas and perspectives.

Companies that look beyond their own backyard find leaders who can roll with change and push the business forward.

Leadership is changing. Companies that focus on execution, not just vision, will stay in the game. The ones that don't will fall behind.