Major CEO Changes at US Companies This Year
CNN: "Increase in Middle-Aged White Men"
Past 'DEI' Pursuit Atmosphere Disappears
This year, as U.S. companies have replaced a large number of chief executive officers (CEOs), an analysis has emerged showing a stronger tendency to prefer middle-aged white men. On the 22nd (local time), CNN summarized, "2024 has been a year of CEO replacements, and companies are increasingly choosing men to fill those vacancies," adding, "The hottest CEO choice among U.S. companies this fall is the classic model: middle-aged white men."
According to a report released at the end of last month by Challenger, Gray & Christmas, a firm specializing in executive coaching and reemployment, a total of 1,450 CEOs stepped down in the U.S. across private companies, the public sector, and nonprofit organizations by August this year. This is the largest annual figure, representing a 15.0% increase compared to the same period last year (1,261). However, during this period, the proportion of newly appointed female CEOs decreased by 1.7 percentage points (p), from 28.9% to 27.2%. CNN pointed out, "The proportion of women and people of color has always been low," and "White male CEOs have never gone out of fashion."
This year, among the Fortune 500 companies, there were 52 female CEOs, roughly one in ten, the same as last year, while the number of Black CEOs peaked at nine last year and dropped to eight this year. CNN evaluated this by saying, "The recent surge in leadership changes shows that white men still hold a strong position as the default model of corporate leadership."
CNN listed cases this year where company heads changed from women to men. On the 18th, CVS Health, the largest pharmacy chain in the U.S., fired female CEO Karen Lynch and appointed David Joyner, a white male executive, as her successor. During Lynch’s tenure, CVS was the largest Fortune 500 company led by a female CEO. Starbucks also abruptly fired Indian-American CEO Laxman Narasimhan this summer and appointed Brian Niccol, former CEO of the Mexican-style food chain Chipotle. Under Armour dismissed female CEO Stephanie Linnartz after just one year and reinstated founder Kevin Plank, who stepped down in 2019. Plank had previously been involved in controversy for visiting strip clubs with other male executives using company corporate cards.
Most recently, on the 21st, Disney appointed Morgan Stanley CEO James Gorman as chairman of the board. Disney CEO Bob Iger is expected to remain in his position at least until early 2026. In other words, two leaders will be guiding Disney, and CNN noted, "To put it simply, the future of Disney will be decided by two white men, Iger and Gorman."
CNN emphasized the importance of DEI (Diversity, Equity, and Inclusion) and criticized the regression to white male CEOs as contrary to these principles. CNN explained, "Pursuing DEI increases profits, reduces employee turnover, and improves employee motivation," adding, "According to McKinsey research, leadership diversity is associated with 'overall growth goals, greater social impact, and more satisfied employees.'"
In the early 2020s, companies adopting DEI as a motto faced significant public controversy when replacing people of color or women with white men, but now the atmosphere has changed. CNN stated, "This aligns with last year's Supreme Court decision to abolish affirmative action policies in universities," and assessed, "It now appears that major companies no longer care about their image as much."
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