Firing the CEO Is the Wrong Answer, Ask Sean McDermott

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.