Recently in the US stock market, the unexpected resignations of CEOs from Intel and Stellantis have attracted widespread attention. These departures underscore the challenging situations both companies face—Intel is lagging slightly behind in the fiercely competitive global semiconductor industry, while Stellantis is facing challenges amid the transformational wave of the global automotive industry. The CEOs' resignations also reflect a broader trend of executive turnover in American businesses, where corporate leaders are frequently replaced due to performance pressures.
According to data from global outplacement firm Challenger, Gray & Christmas, as of October 2023, more than 1,800 CEOs in the United States have announced their resignations, marking a new high since statistics began in 2002, which is a 19% increase from 1,500 in the same period last year. This high resignation rate has sparked widespread market discussion, especially in companies with poor performance, where boards are increasingly exerting pressure directly on CEOs to improve company profits and stock price performance.
David Kass, a finance professor at the University of Maryland, pointed out in an interview that due to the US stock's benchmark return rate being far above the long-term average, the performance gap between companies is widening, especially the stark contrast between the successes of the "Big Seven" of US stocks and other companies. This has led boards of underperforming companies to start pressuring CEOs to improve company performance in response to growing market competition.
Similarly, the increase in CEO resignations also reflects the growing demands from investors and companies for their leaders. According to research by consulting firm Russell Reynolds, the rising CEO turnover rate indicates an increased risk appetite among investors, who hope new leaders can address complex macro business environments involving technological transitions, sustainability, geopolitical, and social issues.
Recently, personnel changes at Starbucks have also reflected this trend. Starbucks appointed former Chipotle CEO Brian Niccol as the new CEO, while former CEO Kevin Johnson announced his resignation after serving for less than two years. Additionally, Michael Conway, the CEO of Starbucks North America, resigned after only six months, showing the accelerated pace of executive turnover.
In this context, the market is particularly focused on how changes in corporate leadership will impact future company performance. Especially against the backdrop of global economic recovery, how companies respond to transition pressures, technological innovation, and macroeconomic uncertainties will become key factors for investors and shareholders. As global market competition intensifies, changes in American corporate leadership will continue to influence company strategies and shareholder returns, requiring investors to pay close attention to the long-term impacts of these shifts on the market.
