Surge in CEO Turnover: A Shift Towards Youth and Inexperience

A significant wave of CEO turnover is currently reshaping leadership at major public companies in the United States. In 2025, approximately one in nine CEOs across 1,500 major publicly traded firms were replaced, marking the highest turnover rate since at least 2010. This trend has continued into early 2026, with notable leadership changes at companies such as Walmart, Procter & Gamble, and Lululemon Athletica. On a single day in February 2026, Disney, PayPal, and HP all announced new CEOs, reflecting a broader shift in corporate leadership dynamics.

Why boards are replacing their CEOsThe Independent

The recent analysis by the executive-recruiting firm Spencer Stuart reveals that the new class of CEOs is characterized by youth and inexperience. The average age of newly appointed CEOs has decreased to 54, down from 56 the previous year. Over 80% of the 168 individuals appointed to CEO positions in 2025 were first-time appointees with no prior experience running public companies or major standalone enterprises. Notably, two-thirds of these new CEOs had never served on a corporate board before their appointments.

The Independent

Prominent examples of this trend include Paul Shoukry, the 42-year-old CEO of Raymond James, and Disney's new CEO Josh D’Amaro, who, at 55, is significantly younger than his predecessor Bob Iger, who was 75 at the time of his departure.

The Independent

Corporate boards are increasingly moving quickly to replace CEOs as they navigate a complex landscape marked by artificial intelligence advancements, shifting trade rules, geopolitical instability, and uneven economic growth. This urgency reflects a broader sentiment that the traditional playbooks of the past may no longer be effective in addressing contemporary challenges. James Citrin, head of global CEO practice at Spencer Stuart, emphasized the need for leaders who can generate momentum both internally and with investors, noting that boards are exhibiting greater impatience than ever before.

The Independent

Despite the trend towards younger leadership, there are concerns regarding the lack of diversity in these appointments. Women accounted for only 9% of new CEO positions in 2025, a decrease from 15% the previous year. This disparity raises questions about the inclusivity of the new leadership landscape and the potential implications for corporate governance.

Why boards are replacing their CEOs

The current wave of CEO turnover is being characterized as a "grand experiment in leadership," as companies adapt to the rapidly changing global environment. With many organizations opting for younger and less experienced leaders, the effectiveness of this strategy remains to be seen. As the corporate world continues to evolve, the ability of these new CEOs to navigate the complexities of modern business will be critical to their success and the overall performance of their companies.

Why boards are replacing their CEOs

• “Younger makes sense to me, given the changes in the world,” — Cindie Jamison, Turnaround Executive

The Independent

• “If the CEO doesn’t get momentum both internally with operating performance and also with investors, then boards are more impatient even than they were.” — James Citrin, Head of Global CEO Practice at Spencer Stuart

The Independent