Record CEO Turnover Sweeps Corporate America
American corporations are undergoing a dramatic leadership transformation, with the largest public companies replacing chief executives at an unprecedented pace. According to new research, businesses are increasingly opting for younger, less experienced, and more cost-effective executives over seasoned veterans, marking a significant shift in corporate governance.
Unprecedented Rate of Executive Change
The Wall Street Journal reports that approximately one in nine CEOs at 1,500 major publicly traded firms were replaced throughout 2025. This represents the highest turnover rate since 2010, when the economy was recovering from the financial crisis. Analysis from executive-recruiting firm Spencer Stuart reveals that, in the final quarter of last year alone, companies with a combined market capitalization of $1.3 trillion installed new leadership.
Notable corporations making changes include Verizon and Yum Brands, the parent company of KFC, Pizza Hut, and Taco Bell. The trend has continued vigorously into 2026, with retail giant Walmart, consumer goods leader Procter & Gamble, and athletic apparel brand Lululemon among those swiftly appointing new CEOs already this year.
Youth and Inexperience Take the Helm
Spencer Stuart's findings indicate that incumbent CEOs are stepping down earlier than in previous years, and their replacements are notably younger. The average age of new CEOs has dropped to 54, down from 56 at the beginning of last year. More strikingly, over 80 percent of the 168 individuals appointed to CEO positions in 2025 were first-timers with no prior experience running public companies or major standalone enterprises.
Two-thirds of these appointees had never even served on a corporate board before their promotion. A prime example is Paul Shoukry, the newly appointed head of financial services firm Raymond James, who is 42 years old. His predecessor, Paul Reilly, was 55 when he first assumed the role in 2010.
High-Profile Leadership Transitions
Disney's recent CEO change illustrates this trend vividly. The company appointed Josh D'Amaro, aged 55, to succeed the outgoing Bob Iger, who is 75. While D'Amaro is considerably younger, he brings substantial internal experience, having previously led Disney's $36 billion theme-park and cruise division. Similarly, in February alone, Disney, HP, and PayPal all announced new CEOs on the same day, followed swiftly by Greg Foran's appointment to lead Kroger.
Businesses currently seeking new CEOs or facing the departure of existing executives this quarter represent a combined value of $2.2 trillion, according to the WSJ. This underscores the scale and financial impact of the ongoing leadership reshuffle.
A Grand Experiment in Corporate Leadership
The Wall Street Journal characterizes this hiring trend as "a grand experiment in leadership" driven by a rapidly evolving global landscape. Companies are grappling with disruptive political forces and the transformative rise of artificial intelligence, necessitating fresh approaches and perspectives at the highest levels.
James Citrin, head of global CEO practice at Spencer Stuart, emphasized the new environment's demands. "We're in a new environment, and someone who's going to replay the playbooks of the past is not necessarily right," he stated. Citrin added that boards have grown increasingly impatient, expecting CEOs to quickly gain momentum both internally with operational performance and externally with investors.
The pressures of this shifting landscape were exemplified by Michael Fiddelke, the new CEO of Target. Shortly after taking over from 11-year veteran Brian Cornell earlier this month, Fiddelke's initial responsibilities included recording a video statement addressing the Trump administration's federal immigration operations in Minneapolis, Target's hometown. This incident highlights the complex, multifaceted challenges facing modern corporate leaders.
As companies navigate an ever more complicated business terrain, this wave of CEO turnover reflects a strategic pivot toward agility, innovation, and cost-efficiency. The long-term outcomes of this leadership experiment remain to be seen, but its immediate impact is reshaping the corporate world.
