For CEOs, retirement is the ultimate performance review—and 60% are failing it

A new survey by Boston Consulting Group indicates that only 40% of CEOs feel satisfied with their transition from CEO to retiree in the first year after retiring. This suggests that many CEOs, who are often wealthy enough to never work again, may not be adequately prepared for retirement. Christine Barton, leader of BCG's North America CEO Advisory practice, suggests that the decision to take a new CEO job may be more driven by fear or vanity rather than a genuine desire for value creation.

Younger CEOs, in their 50s and 60s, may find it especially difficult as they miss having a central role in their identity and structure provided by their job. An executive coach is now a common tool for CEOs, but a growing niche within the CEO coaching industry specifically helps executives prepare for active retirement and build their legacy.

According to the survey of former CEOs, 3 to 4 meaningful activities, such as serving on a board, being an advisor, or teaching, create a sweet spot where one can still feel needed and useful without being overprogrammed. After one year, 90% of CEOs were happy with their retirement experience, but Barton stresses the importance of intentionally planning a portfolio career with self-reflection and a robust internal talent pipeline to avoid luring a CEO back into retirement.