Research from sharetech platform Vestd, as part of their ‘C-Suite Churn Report’ has found the tech industry is experiencing an unprecedented surge of C-suite resignations, with departures skyrocketing in 2024 – jumping 50 per cent above the six year average. The average tenure in a C-suite role is currently four years and five months, with the Chief Technology Officer (CTO) role tenure coming in at only one month higher than the average – highlighting that executive churn continues to be a major challenge for tech leaders.
January 2025 marked a record figure of CEO resignations with 222 executives exiting, the most in a single month since records began in 2003. H1 stats do suggest a wider slowdown – with turnover reducing by 11 per cent compared to the same period in 2024. However, it’s not yet clear whether this is due to a recovery in executive trust, or if businesses are simply choosing to ‘wait out’ the current economic instability before making major leadership decisions.
Ifty Nasir, founder and CEO of Vestd, believes there’s a complex mix of factors driving the tech sector’s executive turbulence. “Today’s CEOs face intense and broadening responsibilities, having to navigate a business through uncharted territory amidst a constant pressure to reinvent the wheel,” he said. “Thinking about how much the tech sector has had to change in recent years – in particular, thanks to the AI boom – it’s clear to see why providing effective leadership in the industry has become only more challenging.
“Add onto that the economic and political turmoil caused by tariffs and global instability and you have a perfect storm of problems for the C-suite executive.”
Ifty also explained that the tech landscape has had to adapt quickly to new developments. “Not only does adapting mean rethinking the entire business model, but the launch of new roles as well. ‘Chief AI Officer’, for example, is a position that wouldn’t have existed in most companies even five years ago. Now almost half of FTSE100 companies have a Chief AI Officer role or equivalent, and 65 per cent of those were hired within the last two years.
Despite these results, Iftly says leaders shouldn’t feel too discouraged, and that there are changes that can be made to address churn at the executive level. These measure include tackling burnout, invest in internal talent pipelines and incentivising goals.
“Giving executives a stake in the company or ‘skin in the game’ can go a long way in securing their long-term commitment,” said Ifty. “One effective option, particularly for the executive suite, is growth shares. Here, recipients are provided with a share in the future capital growth of the business, rather than its current valuation – an excellent motivator for executives to grow the business further.”
