60% of CEOs Fail Retirement Performance Review

A significant majority of chief executive officers, specifically 60%, are experiencing dissatisfaction with their transition into retirement, according to new data published by Boston Consulting Group (BCG) in early August. This finding suggests that many leaders underestimate the profound emotional and psychological adjustments required when stepping away from a demanding executive role. The BCG study indicated that only 40% of CEOs felt satisfied with their shift from active leadership to retirement within the first year of their departure.

This widespread dissatisfaction points to a common challenge: the underestimation of the emotional upheaval associated with a sudden reduction in workload, the relinquishing of a central identity tied to their professional position, and the loss of the structured environment that a CEO role typically provides. Christine Barton, who leads BCG’s North America CEO Advisory practice, questions the motivations behind some CEOs returning to work, posing whether the decision is driven by genuine value creation and unique skills or by "fear or vanity." This sentiment is particularly relevant for CEOs in their 50s and 60s who may still desire to remain actively engaged in the business world.

The challenges of retirement are not exclusive to older executives. Mary Dillon, former CEO of Ulta Beauty, shared her experience of returning to lead Foot Locker in her early 60s after a successful tenure at Ulta. She noted that she "didn't realize how much I would miss having one big thing to focus on and how much I would miss leading a retail company." This highlights the deep sense of purpose and focus that executive roles often provide, the absence of which can be keenly felt.

In response to these findings, there is a growing recognition of the need for companies to actively assist their departing CEOs in preparing for retirement. While executive coaching is now a common practice, Barton observes a burgeoning specialization within this field focused on helping leaders navigate the complexities of post-CEO life. This includes addressing the psychological impact of leaving a high-profile position and supporting the development of new identities and pursuits outside of corporate leadership. The trend of companies rehiring retired CEOs, such as Verizon, Boeing, and Cracker Barrel, particularly during times of crisis, further underscores the potential difficulties executives face in finding fulfilling post-retirement engagement, often leading them back to familiar, demanding roles.