The post-pandemic C-suite cycle: why leadership is in flux and how boards can stay ahead
Warren Partners
Just a few years on from the most disruptive global event in modern business history, organisations are seeing a sharp rise in C-suite turnover. According to a Gartner survey, 56% of C-suite leaders are likely to leave their roles within the next two years, and 27% expect to exit within just six months. Traditionally, the sort of economic uncertainty that the world currently faces would encourage stability, yet this counterintuitive trend suggests that senior executives are seeking new challenges, prioritising wellbeing, or, in some cases, feeling pushed out amid heightened scrutiny.
Why are executives moving?
“The job hasn’t got any easier,” says Rupert Gibb, Partner at Warren Partners. “You ask an awful lot of a CEO today. It’s a massive balancing act – financial performance, sustainability, embracing change, fostering a culture of innovation and attracting, nurturing and empowering talent. It’s relentless.”
This pressure is taking a toll. A Chief.com report highlights that CEO tenures are getting shorter as the demands of the role expand. Many executives are stepping down due to burnout or because they feel they’ve completed their transformation mission post-pandemic. Others are facing heightened investor pressure and activist shareholders who expect immediate results.
But there’s another factor at play: many CEOs are choosing to leave on their own terms.
“The best leaders don’t just react; they know when to move on,” says Laurence Vallaeys, Partner at Warren Partners. “We are seeing seasoned CEOs who have led businesses through a turbulent few years now looking for fresh challenges. Some want to reinvigorate their careers, others want a better work-life balance. It’s a personal decision, but it’s also a broader trend.”
The counterintuitive impact of economic uncertainty
One of the most surprising aspects of this cycle of change is that it is happening despite ongoing economic uncertainty. Typically, executives stay put during recessions or downturns, valuing stability over risk. But today’s C-suite leaders are defying that norm.
A Times report confirms that CEO turnover is accelerating even as markets remain volatile. Increased regulatory scrutiny, shifting shareholder expectations and the relentless pace of digital transformation mean that leaders who thrived during crisis management (such as Covid-19) may not be the right fit for the next phase of growth.
In some industries – such as financial services and pensions – the need for fresh leadership is even more pronounced. “In our world, we are seeing significant leadership shifts,” says Rupert Gibb. “Take pensions, for example. It used to be considered by many to be a fairly steady-state industry – some might have even called it boring – but not anymore. Today, it’s a different beast. One of our clients manages over £45bn in assets and is projected to double that by 2030. They need collaborative, performance-driven, commercial leaders who don’t just understand the numbers but are capable of effectively navigating increasingly complex and demanding stakeholder and regulatory landscapes, as well as rapidly shifting consumer expectations. The latter increasingly around Gen Z purchase behaviour and expectations. That’s a huge ask.”
(continue reading…)
The challenges of succession planning
With CEOs moving faster than before, boards must rethink how they approach succession planning. The Gartner survey found that companies with longer-tenured leadership teams outperform on revenue growth and customer experience, yet the increasing churn in executive roles threatens that stability.
“Boards are taking longer to make CEO and chair appointments,” says Laurence Vallaeys. “It can now take twice as long as it used to for top roles. That’s because the process has become more complex – candidates are more discerning and boards are more cautious about making the wrong decision. But waiting too long also has risks. If an organisation doesn’t shape and develop today the resilient leadership capability of tomorrow, it can find itself on the back foot when a key leader moves on.”
A major issue for many boards is identifying what leadership skills will be needed in five years’ time. With AI, ESG and digital transformation reshaping business models, companies need leaders who can drive future growth rather than just manage the present.
An additional challenge is that despite progress in gender diversity at the board level, the latest Cranfield University Female FTSE Board Report reveals a concerning trend: the proportion of women in executive roles on FTSE 250 boards has actually declined since 2022. While 70% of companies have met targets for female representation in leadership, these appointments are largely concentrated in non-executive roles rather than key executive positions like CEO and CFO. This signals a growing gap between boardroom diversity initiatives and actual executive leadership opportunities – a situation that organisations must address if they are to build truly inclusive leadership teams.
Another concern among business leaders is whether the next generation of CEOs is truly being prepared for the realities of the top job. As industries consolidate and large corporations become less divisionalised, rising executives often develop deep functional expertise – such as in marketing or technology – but with limited exposure to full financial responsibility.
“The CEOs of tomorrow have been less well prepared for that big P&L accountable position,” says Laurence Vallaeys. “When I speak to leaders, they tell me that while specialist expertise is critical, there’s often no one at the Board table who has actually ‘flown the plane’ – someone who understands the unique weight of CEO decision-making.”
This highlights a growing gap in succession planning: functional excellence alone is not enough. Boards must ensure that future leaders are given the right breadth of experience to step confidently into CEO roles or risk a pipeline that is rich in expertise but lacking in strategic leadership capability.
What can organisations do?
With C-suite churn increasing, businesses that can best predict the corporate requirements of tomorrow and embrace a long-term talent strategy – rather than reacting when a vacancy arises – will be better positioned for success.
1. Invest in internal talent development – Ensuring high-potential executives gain broad business exposure and P&L responsibility will prepare them for future leadership roles. This is particularly relevant as the CFO role has expanded beyond traditional financial management to include strategic leadership, technology integration and operational decision-making. As a result, more CFOs are stepping into CEO roles, with Chief.com reporting that 20.6% of new financial services CEOs in 2024 were former CFOs. Businesses must ensure that internal talent – whether in finance, operations or other key functions – is given the breadth of experience necessary to transition into top leadership roles.
2. Strengthen Board-executive relationships – Warren Partners’ experience is that strong relationships between the Chair, CEO and C-suite create more stability. Boards should encourage NEDs to invest time with executives in the business and make sure the CEO is supported by a strong inner C-suite. These C-level executives should have exposure to the Board and, as always, the organisation should ensure hiring focuses on the right culture fit, not just technical expertise.
3. Prioritise wellbeing and work-life balance for leaders – The Gartner report highlights that 44% of executives feel more stressed than ever. Organisations that address this issue will retain talent longer.
4. Understand what’s needed further down the line – While forecasting for business trends is a challenge, there are ways to get ahead of the curve. Consider bringing more diverse NEDs on board, representing different age groups, business models and markets. Because drawing from a traditional job pool may not provide the radical thinking needed to move forward.
5. Benchmark leadership talent against emerging market disruptors – Many businesses often assess their leadership teams in isolation, comparing executives against internal benchmarks or established industry norms. By widening the net to include disruptors, it ensures they have the agility, digital expertise and commercial mindset to compete in the future landscape.
Embracing the cycle of change
The post-pandemic cycle of change is real, and it’s reshaping the C-suite landscape. CEOs are leaving faster, investors are demanding more and leadership expectations are evolving. While this may seem like a challenge, it’s also an opportunity.
By embracing succession planning, investing in leadership development and ensuring cultural alignment, organisations can not only survive this transition, but thrive in it.
As Rupert Gibb says: “If there’s one lesson from all this, it’s that the right people matter. Get the people, leadership and cultural aspects right, and the financial results will follow. The businesses that adapt to this new reality will be the ones that lead the way.”