The tech industry is experiencing an unprecedented surge of C-suite resignations, with departures skyrocketing in 2024 – jumping 50% above the six year average.
New research, part of the ‘C-Suite Churn Report’ created by sharetech platform Vestd, found that the average tenure in a C-suite role is 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% 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.
Why the rise in resignations?
Ifty Nasir, founder and CEO of Vestd, believes there’s a complex mix of factors driving the tech sector’s executive turbulence. He said:
“Today’s CEOs face intense and broadening responsibilities, having to navigate a business through uncharted territory amidst a constant pressure to reinvent the wheel.
“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.”
Is tech outpacing its talent?
Ifty explained that the tech landscape has had to adapt quickly to new developments. He said:
“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% of those were hired within the last two years.
“Keeping up with the pace of change – and finding leaders that are capable of bringing businesses through it – continues to be a major challenge. But leaders shouldn’t feel too discouraged, there are changes that can be made to address churn at the executive level.”
Top tips to retain executive talent
Tackle burnout from the boardroom
Satisfaction statistics back up resignation figures, with more than three-quarters (77%) of UK CEOs feeling overworked and burned out. Furthermore, some 37% were considering either a role change or retirement within the next three years.
Ifty added:
“If executive teams feel burnt out, it’s likely that this will trickle down into other teams. Creating a positive and sustainable workplace culture, therefore, must start at the top. That includes things like prioritising a healthy work-life balance, as well as making sure people leave on time and aren’t unnecessarily bringing work home.”
Invest in internal talent pipelines
According to Ifty, successor planning will become critical for businesses.
“The vast majority of CEO appointments tend to be internal candidates: those who’ve risen through the ranks bring a deep understanding of how the organisation – and the people – works. The issue here is that without a strong pipeline of internal candidates, replacing executives becomes a lot more difficult. With finding a successor often another item on the executive’s to-do list, it can be a headache.
“But rather than only thinking about a successor when it’s time for an executive to leave, companies can start preparing future leaders earlier.
“Don’t wait for someone to hand in their resignation. Instead, help employees lower down on the career ladder to grow. It shows the organisation cares – and that makes staff more likely to stick around. When they do eventually move up to an executive position, that sense of feeling valued will shine through.”
Incentivising goals
Ifty also discussed the importance of incentives to retain top talent. He said:
“Giving executives a stake in the company or ‘skin in the game’ can go a long way in securing their long-term commitment. 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.
“Growth shares can also be set with customised triggering conditions – like hitting a revenue goal or staying with a company for a set period of time. This gives a clear goal of exactly when recipients will actually get access to their shares, providing a powerful counterbalance to short-term business pressures and annual or quarterly bonuses.
“And ownership opportunities don’t have to stop at the boardroom. Extending the offer of shares to wider teams creates a culture of shared accountability, uniting employees behind a single goal and easing off some of the C-suite pressures.”
The revolving door at the top of tech companies is more than just a leadership issue – it’s a strategic vulnerability. To truly thrive in such a volatile, fast-moving environment, companies must take a proactive approach to the elements more within their control: leadership culture, talent development, and retention.
As businesses begin looking ahead to 2026, it’s imperative that leadership gaps aren’t another issue we bring into the new year.
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