Businesses saw a significant number of CEO departures in 2022. Here are the executives who stepped down.
In the ever-evolving world of retail, a notable trend has emerged this year: a wave of CEO departures. According to a partner at Heidrick & Struggles, Catherine Lepard, there has been an uptick in CEO departures throughout retail, with 832 CEOs leaving their positions as of the end of July 2022 - the highest total in that timeframe since 2019.
One of the first major departures was that of John Foley, CEO of Peloton, who exited in February. This was followed by a 28% revenue decline and a $1.2 billion loss in August, prompting speculation about the impact of CEO changes on a company's performance. Peloton, however, has since announced plans to sell on Amazon and is reportedly considering closing stores.
Another significant departure was Mark Tritton, CEO of Bed Bath & Beyond, who exited in June. This move came after a 25% decline in sales for the company. Bed Bath & Beyond is now reevaluating its private label strategy, reflecting a broader shift in retail strategies.
Gap Inc., a retail giant, lost two CEOs in 2022: Old Navy's Nancy Green and Sonia Syngal, who led the entire company. The company also laid off 500 corporate employees in September and lost its partnership with Ye (Kanye West).
The pandemic has influenced CEO and C-suite level departures, as it changed the table stakes for doing business in retail. For instance, Under Armour's CEO Patrik Frisk left after little more than two years, surprising many analysts.
Retailers are seeking CEOs who are modern, contemporary thinkers and can look around the corners to what's next. This is evident in the appointments of new CEOs at Forever 21, Lululemon's Mirror division, and Fressnapf, among others.
Not all departures were due to performance issues. Swarovski appointed its first CEO from outside of the founding family in 2022, and Adidas is conducting a search to replace current CEO Kasper Rorsted, who will step down sometime next year.
The holiday season could lead to even more turnover at brands that don't have a good year. However, for some companies, the changes have been more structural. Multiple companies have combined their COO and CFO roles, or, like Bath & Body Works, simply didn't replace their exiting COO.
This total of CEO departures is up 8% year over year. Through July, 14 CEO departures were tracked in retail, just one fewer than the year prior. The wave of CEO departures continues to reshape the retail landscape, with many eyes on the upcoming holiday season to see its impact on the industry.
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