In only 17 Months: The $40 Billion Collapse Everyone Missed💥
As we head into the festive season 🎄— a time of reflection, transition, and renewal — there’s a leadership lesson hiding in plain sight. In 2024, 134 unplanned CEO departures hit Russell 3000 companies — the highest 📈 in recent memory. Bloomberg highlights just how costly CEO transitions can be:
1️⃣ Paying the outgoing CEO: Median payout $6.7M, including unvested stock and equity
2️⃣ Paying the incoming CEO: Median sign-on $9M — Brian Niccol at Starbucks received $90M upfront
3️⃣ Retention awards for other leaders: Incentives to stay or step up temporarily
4️⃣ Advisory fees: Recruitment firms, lawyers, & PR consultants often reach seven figures
5️⃣ Investor impact: PwC reports $1.8B in shareholder value lost per firm, while FTI Consulting finds investors twice as likely to sell than buy after a CEO shakeup
Now consider the 18-month executive transition failure rate — nearly 40% of new executives don’t last that long. Laxman Narasimhan’s 17-month tenure at Starbucks underscores the risk: Starbucks’ market cap dropped $40B or about 22% during his tenure, while the benchmark S&P 500 rose about 37% during the same period
Executive transitions are not just financial events — they’re career inflection points. Through targeted transition coaching, I help executives:
✅ Reposition themselves for new, high-stakes roles
✅ Translate experience into influence & measurable impact
✅ Build resilience & strategic clarity in times of uncertainty
#Boards & companies often underestimate the human side of CEO transitions. It’s not just compensation — it’s sustaining culture, leadership continuity, & long-term value 💶. Executives who prepare strategically are far more likely to succeed — & avoid becoming another 18-month statistic
💬 Question for leaders & boards: How do you prepare your executives — not just your financials - to #BraceForImpact ?
In a world where $40B can disappear in 17 months, career strategy, executive readiness, & coaching aren’t optional. They’re indeed mission-critical
📣 But don't take my word for it. Take it from a recent client of mine, a CEO of a luxury retail company who was promoted from the CMO position. She described our work as follows:
💬 “I want to take this opportunity to express my gratitude for your support and coaching in my development as a CEO. Your coaching has helped me to define a clear vision for our company, develop a strategic plan for my team, and enhance my self-awareness substantially. The coaching has been crucial in my journey to become a more effective leader. Your coaching not only helped me navigate the initial transition challenges but also empowered me to make impactful decisions that align with our long-term goals. I’d like to thank you for your invaluable support.”
BTW: More than 50% of my coaching clients have been CEOs for the past 3 years. Transitions don’t wait for calendars, DM me for an early conversation. We are a team of 60 Certified Transition Coaches™ and ready to support any organisation.
#MasteringExecutiveTransitions #ExecutiveCoaching #CEOTransitions
About Navid Nazemian
Ranked as the world’s #1 Executive Coach by CEO Today for the 3rd year running, I use interventions that are designed to overcome obstacles quickly. Over the last 2 decades, I have helped hundreds of executives successfully eliminate unproductive thinking and solve their toughest, most complex challenges. In return, they have supported their organisations to build world-class cultures primed to create new markets, accelerate performance, increase productivity, and develop game-changing value propositions. 5 more ways to connect with me and my work:
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Marshall Goldsmith says it‘s „The ultimate guide to executive transitions to help leaders achieve their highest potential.“
Prof. Dave Ulrich names it „The compendium book on transitions, a critical topic in these days of uncertainty & change.“
Dr. Hannes Ametsreiter says it „provides brilliant insights on what makes successful careers.“
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Warm wishes,
Navid
