Target CEO departure is the latest example of a growing trend

Being a chief executive no longer holds the job security it once did.

On Wednesday, August 20, Target  (TGT)  announced that CEO Brian Cornell is stepping down after 11 years at the helm of the once-beloved retailer.

Cornell will officially step down on February 1, when Michael Fiddelke, the current Chief Operating Officer with over 20 years of Target experience, will take over.

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Target has struggled with political controversies as well as falling sales in recent years. Though it did beat analysts' fiscal-second-quarter expectations and affirm its outlook, its stock was sliding. The shares are off nearly 29% this year, down 33% from this time in 2024 and 37% from five years ago.

Cornell's departure wasn't surprising; rather, it extended a disturbing trend among CEOs worldwide.

CEO turnover is reaching record highs

Different data sets have different numbers, but the overall trend remains the same. CEOs are stepping down at record levels.

Challenger, Gray, & Christmas released data showing that a record 222 CEOs stepped down from their posts in January 2025, a 14% year-over-year increase. It was the most since tracking began in 2003. Last year, a record 2,221 CEOs departed in 2024, a 16% year-over-year increase.

The numbers at Russell Reynolds aren’t as stark, but they paint a similar picture.

The firm collects CEO turnover data across market-listed companies globally.

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According to its data, 110 CEOs departed their positions globally in the first half of 2025. That is an 11% year-over-year decrease.

However, companies in the S&P 500, which mainly constitute U.S.-based companies, saw 36 CEO departures in the first half, matching 2024 levels.

And the firm states that just because there has been a global lull doesn’t mean everything is okay across the global C-suite.

"This decline in CEO turnover may also reflect organizational caution and policy uncertainty, with some organizations adopting a ‘wait and see’ approach to major leadership decisions as they navigate regulatory and trade policy shifts," researchers said.

In addition, the data shows that the average tenure for an outgoing CEO has fallen considerably year over year. In the first half of 2025, the average CEO had 6.8 years of tenure, compared to 7.7 years during the same period last year.

The 2025 figure is also the lowest H1 figure recorded since Russell Reynolds began tracking CEO turnover in 2018.

"Today’s CEOs face growing expectations, broader responsibilities, and the constant pressure to reinvent their organizations amid an accelerating business environment," the firm says.

"This decline in tenure could indicate that the combination of heightened stakeholder scrutiny of the CEO role and the need for continuous business transformation is making the role increasingly challenging to sustain."

Investors question Target's CEO succession choice

Target's shares dropped nearly 15% Wednesday after the company revealed that Fiddelke would be taking over.

Since he has decades of experience at the company and has worked closely under Cornell, some investors may have wanted the company to search outside itself for the answers to its problems.

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But Target is also following a growing C-suite trend: internal promotions. More than three-quarters (76%) of all incoming CEOs in the first half of 2025 were internally promoted, according to RR data, matching 2024 levels and showing a clear trend.

But while investors may be uninspired by the pick, there is a method to the madness.

"This indicates that boards are increasingly taking a proactive, strategic approach to leadership transitions, rather than reacting to unexpected departures," researchers said.

Related: Target will soon cut a major section customers love from stores