CEO turnover at major U.S. companies has reached its highest level in twenty years. So far in 2025, 41 companies listed in the S&P 500 index have changed their CEOs, approaching last year’s figure of 49.
The main reasons behind these changes include increased shareholder activism, greater board independence, pressure on financial performance, and stricter expectations for CEO behavior.
Recently, Procter & Gamble announced that CEO Jon Moeller will be replaced by Shailesh Jejurikar. Kenvue, the maker of Tylenol, also changed its CEO after company shares dropped by 16.5%.
Changing Boards of Directors
In recent years, many corporate boards have been refreshed with members of diverse backgrounds in terms of nationality, gender, and experience. This has increased board independence and led to stricter oversight of CEOs. Today, CEOs are held accountable not only for results but also for aligning with company culture and social values.
