Firing the CEO Is the Wrong Answer, Ask Sean McDermott
•February 19, 2026
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Why It Matters
Boards that focus on systemic health rather than scapegoating CEOs can sustain performance and protect shareholder value, especially in fast‑paced private‑equity environments.
Key Takeaways
- •CEO turnover hits decade‑high, 1 in 9 replaced
- •Firing CEOs rarely fixes underlying systemic issues
- •Board alignment drives CEO success more than talent alone
- •Private‑equity timelines limit effective CEO replacement
- •Strong teams can make B‑player CEOs outperform A‑players
Pulse Analysis
The wave of CEO turnover in 2025 mirrors the NFL’s annual coaching purge, but the parallel is more than cosmetic. A Spencer Stuart study highlighted that roughly 11% of CEOs at large companies were ousted, underscoring a growing belief that leadership change is a quick remedy. Yet the article stresses that, like a football team, an organization’s performance hinges on the entire system—board dynamics, reporting structures, and cultural cohesion—rather than a single figurehead. This systemic lens reframes turnover as a symptom, not a cure.
Board‑CEO alignment emerges as the decisive factor in turning talent into results. When boards clearly define success metrics and construct supportive governance frameworks, even a so‑called B‑player CEO can drive outsized growth. Conversely, an A‑player leader can stumble amid fragmented oversight, conflicting agendas, or misaligned incentives. Private‑equity firms amplify this tension; compressed investment horizons pressure boards to act swiftly, often defaulting to CEO replacement instead of diagnosing structural misfits. The article argues that such haste can erode value, as the new leader inherits unresolved friction.
For practitioners, the takeaway is actionable: prioritize diagnostic rigor over reflexive dismissals. Boards should conduct holistic health checks, mapping talent, processes, and strategic fit before deciding on leadership changes. Investing in clear communication channels, aligned incentives, and adaptable organizational models creates a resilient platform where any CEO—regardless of pedigree—can thrive. This team‑first philosophy not only mitigates the costs of turnover but also positions companies for sustainable, long‑term performance.
Firing the CEO is the wrong answer, ask Sean McDermott
The annual NFL tradition of firing the head coach as the season ends continues. This year, 10 top coaches got the axe, a staggering 31% of all NFL coaches. And they include football legends like John Harbaugh, after 18 seasons with the Baltimore Ravens, and Sean McDermott, who took the Buffalo Bills to the playoffs in eight out of nine seasons.
Firing the head coach—just like firing the CEO in the business world—is the easy answer, and it looks good in the media: decisive, forward‑looking, taking action. But, most times, this act alone falls short of fixing the problems that contributed to an organization’s failures.
PART OF A SYSTEM
In reality, the CEO is part of a system, and it’s the system that matters. You can have a B‑player CEO with a great team and board and deliver significant performance and culture gains. Alternatively, you can have an A‑player CEO with a weak board and team and fail spectacularly. If you only focus on “fixing the CEO,” you’re not focused on the right problem and can’t get to the right solution.
Yet CEO turnover is at its highest level in more than a decade, according to a 2026 Spencer Stuart study reported in The Wall Street Journal. In fact, approximately one in nine CEOs were replaced in 1,500 large companies in 2025, including the CEOs of Disney, HP, Lululemon, PayPal and Procter & Gamble.
Disney illustrates the downside of this. Just ask Bob Chapek. Sure, he had a rough three years as CEO of Walt Disney Co. before the board summarily fired him and brought back his predecessor, Bob Iger. Disney stock, at $125 a share when Chapek took over in February 2020, had fallen almost 40 % to $90 by the time he got the axe on November 20, 2022. Iger arguably is one of the best CEOs in decades, and he rebuilt the company with incredibly successful acquisitions (Pixar, Marvel Entertainment, Star Wars, the Muppets). But his two years back at the top were less than stellar: Disney shares are up 17 % since he took over, while the S&P media and entertainment index rose 99 % in the same period.
Obviously, Chapek alone wasn’t the problem, just as Iger alone wasn’t the solution. Rarely is the executive at the very top solely responsible for what went wrong. It owes to a multitude of weaknesses: illogical organization models, conflicting agendas, turf battles, reporting structures that don’t align with the company strategy, and communication lapses.
There is rarely an objective assessment done ensuring the board is aligned with a new CEO or a new market entry for what success looks like, and the structures and talent required to achieve that success. This is especially true in the unforgiving and bottom‑line‑obsessed world of private equity (PE). The biggest myth in PE (and pro football) is that if you get the CEO right, and you get the strategy right, you will get the numbers you want on the scoreboard.
Every CEO is encumbered by their surroundings. A PE board is possibly 50 % of the CEO’s success or failure, and in my experience, a lack of alignment between how each part defines success is a root issue. Leaders of PE‑funded businesses must also operate under very compressed timeframes that leave little room for exiling and replacing a CEO. By the time the CEO has been exiled, it can be even harder—or too late—to drive a successful outcome.
A TEAM APPROACH
This is why, again, even B‑player CEOs with strong teams and supportive boards find success, while A‑rated commanders often falter with the wrong organization structure and fractured boards. The CEO is but one part of a whole system that must play well together, including the board, key team members, business partners, core customers, and suppliers.
Yet highly intelligent and competitive people often miss their biggest and most controllable opportunity to ensure their CEO is positioned for success. That is to better manage their own decision‑making, accountability, and communication as board members and teammates and ensure the organization is designed for success.
Alice Mann is founder and CEO of Mann Partners.
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