FTSE 100 chief executive turnover sinks to five year low

The number of chief executives leaving their positions at FTSE 100 companies has dropped to a five-year low, as businesses opt for stability amid ongoing economic uncertainty. Executive turnover this year is projected to be the second lowest since 2012, according to data from AJ Bell. Since January, there have been only nine chief executive changes, below the typical annual average of 13 since 2000.

Companies such as Babcock, Diageo, GSK, and Rentokil have replaced their top executives, while British Land is set to appoint a new CEO in 2027. Finance director turnover has also slowed, with only 15 changes recorded so far in 2026, down from 25 last year. Diageo and Barrett Redrow were among the firms that replaced both their chief executive and finance chief, along with BT and Vodafone.

The decline in turnover has been attributed to a reluctance to disrupt leadership during widespread market volatility caused by the conflict in the Middle East. The high cost of replacing executives, which includes strategy resets, supply chain overhauls, and headcount assessments, has made many firms reluctant to make changes. AJ Bell's Dan Coatsworth noted that "for some companies, it might be the wrong time to rock the boat with new leadership, maintaining continuity may be viewed as the lower-risk option."

Unlike other indices, the FTSE 100 has managed to avoid the influence of activist investors, who often drive leadership changes. Earlier this year, Diageo and Greggs faced pressure from activist investors to make changes, but few companies have been pressured to do so. Coatsworth identified distribution group Bunzl and Premier Inn owner Whitbread as groups facing significant activist pressure.

Bunzl's CEO has been in the role since 2016 and has delivered a 61% return for shareholders, while Whitbread's CEO has caused a 6.6% loss for shareholders since taking over in 2023. Activist investor Corvex recently called for a board representative to join Bunzl's board. Coatsworth suggested that Bunzl and Whitbread have faced challenges that may make them more receptive to an activist shake-up.