Key facts
- FTSE 100 CEO turnover reached a five-year low in 2025.
- The average tenure of a FTSE 100 chief executive is 5.9 years.
- Economic uncertainty is a key factor in companies retaining their CEOs.
- US boards are more likely to replace CEOs compared to UK boards.
- UK firms are increasingly focusing on planned succession for leadership roles.
Turnover among chief executives of FTSE 100 companies has fallen to a five-year low, indicating a greater emphasis on leadership stability within the UK's largest listed firms. This trend, which began in the previous year, saw only 7% of FTSE 100 CEOs depart their roles in the first nine months of 2025, according to Korn Ferry.
Experts suggest that economic uncertainty, encompassing factors from tariffs to artificial intelligence, is a primary driver for companies retaining their top leaders. Leaders themselves may also be inclined to stay put until economic conditions improve. This contrasts with the US, where a higher volume of CEO changes is observed, partly attributed to the prevalence of activist investors and a business culture that has historically been more inclined towards rapid leadership transitions.
Over the five years leading up to September 2025, more than half of FTSE 100 companies (53) experienced a CEO departure. However, the rate of change has slowed, with only 14 FTSE 100 firms seeing a chief executive change in 2025, which is modestly above the post-2000 average of 13 but indicative of a broader trend towards stability. The average tenure for a FTSE 100 chief executive currently stands at 5.9 years, a figure that has remained stable between five and seven years since 2016.
UK firms are also reportedly paying more attention to planned succession strategies, aiming to develop internal candidates with proven capabilities and organizational knowledge. While some critics suggest this focus on stability might slow the adoption of new opportunities, such as AI, proponents highlight improvements in UK corporate governance.