A few years ago, I worked with an organization grappling with the aftermath of an unthinkable tragedy: the murder of a senior executive during what should have been an ordinary moment—leaving the office at the end of the day. The loss was deeply felt, not only for the individual and their family but for the organization as a whole. It wasn’t just the grief that lingered; it was the stark realization that the role of a CEO, once a symbol of stability and protection, had fundamentally changed.
Recent events, such as the tragic murder of a prominent CEO in New York City, remind us of this evolving reality. Leadership today demands not just strategic acumen but also the physical and emotional resilience to navigate risks that extend far beyond the boardroom. For boards and organizations, this shift raises important questions—not just about security measures but about how the nature of the role itself impacts the people who take it on and the organizations they lead.
The Quiet Evolution of Leadership
For decades, the role of a CEO has been synonymous with prestige, control, and influence. It is a position marked by scrutiny and pressure, but rarely by personal risk. Yet today, the public-facing nature of corporate leadership has brought new exposures. CEOs are symbols, not just of their organizations but of societal and economic forces, and this visibility carries with it vulnerabilities that were once unthinkable.
This is not to say that CEOs live in fear. Many of the executives we’ve worked with are pragmatic and courageous, fully aware of the demands of the role and ready to meet them. But the awareness of personal risk—the fishbowl effect—has become an unavoidable part of modern leadership. This awareness doesn’t necessarily change the policies or decisions made at the top, but it does add a layer of complexity to the job, requiring a personal gut check every day.
The Financial Impact of an Evolving Role
The shift in how leadership is perceived and experienced has broader implications for organizations. This isn’t about the direct costs of tragic incidents—it’s about the long-term consequences of how the role of CEO is changing.
Recruitment and Retention:
The job of CEO, already daunting, is becoming less attractive for many highly qualified candidates. Executive search firms report increased hesitancy among top-tier talent to pursue high-profile roles, particularly in industries where visibility is highest. This narrowing talent pool can lead to higher recruitment costs and longer search processes, adding both financial and operational burdens to organizations.
Shortened Tenures:
The average tenure of Fortune 500 CEOs has declined to 4.8 years, down from 6 years a decade ago, according to recent industry reports. With leadership changes occurring 25% more frequently, companies face increased costs associated with recruitment, onboarding, and strategic realignment. Executive search fees alone can range from $300,000 to $400,000 per transition, with indirect costs—such as disruption to long-term initiatives—adding millions more.
Organizational Stability:
Frequent turnover at the top disrupts continuity and can erode stakeholder confidence. Companies with higher CEO turnover often experience 4–5 percentage points lower total shareholder return (TSR) during transition periods, a tangible loss that can affect everything from employee morale to market valuation.
Boards as Stewards of Leadership Resilience
As the nature of leadership evolves, so too must the role of the board. Supporting CEOs in this environment is not about overreacting or instituting draconian security measures—it’s about fostering resilience and stability in a way that reflects the realities of modern leadership.
Boards must balance the need for accessibility and openness with the responsibility to protect their leaders. This means ensuring consistent protocols across all aspects of a CEO’s professional and personal life, while also creating an environment of trust and support.
Just as importantly, boards must take a proactive approach to succession planning and leadership development. By cultivating a deep pipeline of capable leaders and aligning organizational strategy with leadership transitions, they can mitigate the risks of shortened tenures and ensure continuity.
A Shared Responsibility
The recent tragedies remind us of the humanity behind leadership. CEOs are not just strategists or decision-makers—they are individuals with families, aspirations, and vulnerabilities. Acknowledging the evolving risks of their roles is not about fear; it’s about respect.
For boards, this is a moment to reflect on the structures and support systems they provide, ensuring that the roles they entrust to leaders are not just achievable but sustainable. For organizations, it’s an opportunity to consider how the shifting dynamics of leadership impact not just individual executives but the culture and resilience of the organization itself.
Leadership has always been about navigating uncertainty. Today, that uncertainty includes challenges that demand not just vision but humanity. The future of leadership depends on how well we recognize and address those challenges—together.