Recent studies show that the top executives are joining the Great Resignation in large numbers. They ... [+]
Workers tend to view their CEOs as the enemy. They’re seen as lavishly overpaid privileged kings and queens reigning over their minions. Despite the animosity felt against the executives who earn multimillion-dollar pay packages, while laying off staff, people need to keep in mind that they are only human. Believe it or not, the CEOs have feelings and emotions that are not too different from the workers in their organizations.
Recent studies show that the top executives are joining the Great Resignation in large numbers. They are growing tired of the unrelenting stress, pressure and accompanying burnout. Similar to the folks who’ve left their jobs in pursuit of a better work-life balance, C-suite executives are following suit.
Why CEOs Are Considering Quitting
A Deloitte study shows that around 70% of high-level executives are seriously considering quitting their jobs, largely due to help with their emotional well-being. Fifty-seven percent said they were fed up enough to quit. Respondents to the survey indicated that 76% of the executives pointed to the pandemic having a negative impact on their overall health, and over 80% replied that improving their mental health was more important than their career.
The CEOs had to navigate the pandemic, then pivot toward fighting the war for talent. With millions of jobs available, it's become exceedingly challenging to attract, recruit, onboard and retain people. Knowing that they have the upper hand, workers pressed for better working conditions, more money and enhanced benefits. The chief executives recognize that if their demands aren’t met, they’ll quit. It’s not an idle threat when jobs are in an abundance. CEOs at companies, such as Amazon and Starbucks, must contend with the surge in talks about forming or joining unions.
The stakes are higher for the top brass, as the buoyant economy and record-setting stock market made the CEOs look like geniuses. However, it seems the good times are over. Instead of enjoying fat gains on their stock options, the stock market plummeted to bear market territory, erasing their gains.
CEOs now must contend with stubborn inflation, supply chain disruptions, the impact of a possible world war on their businesses, a likely recession and possible stagflation. These trends would call for CEOs to cut costs, downsize staff, enact hiring freezes, rescind job offers and consider cutting salaries. These actions would weigh heavily on the top executives and make their lives considerably more difficult.
It also doesn’t help matters when there is a chasm of disconnect between the perceptions of senior leadership and the rank-and-file staff. Deloitte’s research found that only a little over half of the polled employees believe that their leaders care about their well-being. Meanwhile, over 90% of CEOs self-congratulate themselves, believing their workers feel that they’re doing a great job.
According to management consulting firm Challenger, Gray & Christmas, CEOs are stepping down at a high level. The executive coaching company cited that over 500 CEOs left their jobs in 2022.
The CEOs Who Are Stepping Down
Ben Silbermann, cofounder, CEO and president of Pinterest, will step down from his roles and become executive chairman, the company announced Tuesday. Silbermann said about the announcement, "As you can imagine, this was a hard decision. So much of my heart belongs to Pinterest. I guess you could call it a founder's love." He added, "And, when you care about something so much, the natural instinct is to hold it as tight as you can. But often, the most loving thing to do is let it go and watch it flourish in new ways.” The outgoing CEO had to contend with the company’s stock price plunging from almost $80 per share to under $20 from last June to now. There have also been complaints of alleged discrimination and retaliation.
DocuSign was a pandemic darling. The e-signature app made it easy for people to execute agreements and contracts online, as people worked from home. However, the company’s CEO, Dan Springer, is stepping down. The announcement was made last Tuesday, as shares of its stock plummeted about 80% from its 52-week highs.
Crowdfunding site Kickstarter’s CEO, Aziz Hasan, announced in March that he was relinquishing his CEO role. Hasan said in a company blog, “I am so proud of the work we’ve done together.” He added, “Leading such a passionate, skilled, and dedicated team through intense moments of change, milestone victories and complex challenges has been a humbling and rewarding experience.” His reason for leaving was attributed to a desire to spend more time with family.
“I just want to go sit at the beach and do nothing,” said Andrew Formica, the 51-year-old money manager, on Tuesday. Formica, the CEO of the nearly $70-billion U.K.-based investment firm Jupiter Fund Management, said about his early retirement in an interview with Bloomberg, “I’m not thinking about anything else.” A company statement said about the decision, “Andrew has always been clear with the Board that his longer-term plans would involve the relocation back to his native Australia with his family.”
Reuters reported, “Jupiter investors have seen the value of their shares fall over the past three years. The stock has slumped about 39% so far this year, after losing around 8% in 2021 and about a third of its value in 2020.”
The chief executive of Amazon’s large consumer business and the person behind its warehouse operations, Dave Clark, said he will depart the ecommerce company after 23 years. His last day will be July 1. On Twitter, Clark wrote, “It’s time for me to build again.”
Longtime chief executive of Southwest Airlines, Gary Kelly, announced this month that he will be leaving by the beginning of next year. Over 1,300 Southwest pilots protested last week inadequate pay and alleged poor working conditions with signs at Dallas Love Field Airport. The pilots cited frustration with flight delays and cancellations, as passenger demand for travel has picked up after the pandemic and there have not been enough employees to service the demand.
Julie Wainwright, founder and CEO of the luxury goods consignment clothing, fine jewelry, watches, fine art and home decor retailer, the RealReal, has stepped down. Investment research firm, the Motley Fool, reported on the consignment retailer’s fiscal situation, “The RealReal's full-year numbers, the stock is trading near its all-time low. It's lost nearly 70% from its IPO price, significantly underperforming the market since its IPO in 2019.”
Sporting attire retailer Under Armour announced CEO Patrik Frisk is moving on after two years. CNBC says that the apparel company will expect tough times ahead as it faces “global supply chain challenges and another round of Covid lockdowns in China that are putting a dent in demand.” Its stock price is trending at a 52-week low point.
Starbucks CEO Kevin Johnson is moving on. Johnson served on the coffee chain’s board for 13 years and has been the CEO since April 2017. The announcement came as a number of Starbucks locations have pushed to unionize.
While the CEOs publicly say that they want to spend more time with family, hit the beach and take care of their mental health and emotional well-being, many of the backstories show that their companies are contending with tough challenges and declining stock prices.
For some, the headaches aren’t worth the lush pay packages, especially as the economy and business environment will only worsen in the near term. It makes prudent sense for the CEOs to take much-needed time off to rest and recuperate, so that they can return when the market turns around for the better.
