A CEO exit refers to the departure of a chief executive officer from their leadership position, a pivotal event that can significantly impact a company's...
Common reasons include retirement, resignation for personal or professional pursuits, termination due to performance or misconduct, and transitions to new roles or companies.
The immediate impact can be volatile. A well-managed transition with a strong successor might lead to stability or gains, while uncertainty can cause a temporary decline or upward swing depending on the market's perception of the new leader.
Replacement can be an internal candidate (promoted from within), an external hire, or an interim CEO appointed by the board of directors while a comprehensive search is conducted.
The board is responsible for overseeing CEO performance, managing succession planning, and making the ultimate decision on appointing or dismissing a CEO and selecting their replacement.