US companies announced 186 chief executive exits in August, according to the latest report from Challenger, Gray & Christmas. That is up 55% from 120 in July, and 27% higher than August last year. Retirements and chief executives stepping down made up the largest groups. And 22 of the exits were interim chief executives whose terms had come to an end, the most of any month this year.
Behind each of those numbers is a board that had to decide, sometimes within days, who would run the company next. Some had a succession plan ready. Others did not.
For a board facing an unplanned exit, the first 30 days set the tone for everything that follows.
Days 1 to 3: stabilise
The immediate job is continuity and confidence. Employees, customers, lenders and, for listed companies, investors all want to know who is in charge.
The board should agree who holds executive authority today, even if that is a temporary arrangement, and communicate it clearly and quickly. Silence invites speculation, and speculation moves faster than any announcement.
It also helps to identify early which relationships are most exposed to the departure: a major customer the chief executive handled personally, a lender, a key partner. A call from the chair in the first days can prevent a problem that would take months to repair.
Week 1: decide on the bridge
The next decision is whether the company needs an interim chief executive while it searches, or whether an internal leader can hold the role.
An internal appointment is often the default, and sometimes the right one. But it carries costs that are easy to miss. The person is now doing two jobs. Their own team loses a leader. And if they are also a candidate for the permanent role, every decision they make may be read through that lens.
An experienced external interim brings different strengths. They have run companies before, they can start quickly, they are not a candidate, and they can make the difficult calls the transition may require without worrying about their next promotion. Speed matters here too: an interim who can start within days keeps decisions moving while the board thinks clearly about the long term.
Weeks 1 to 2: write the mandate
Whichever route the board chooses, the mandate should be written down. What must the interim achieve? Which decisions are theirs, and which stay with the board? What does done look like, and by when?
A clear mandate is what separates an interim period that moves the company forward from one that simply holds its place. It also gives the board a fair basis for reviewing progress.
Weeks 2 to 4: start the search and plan the handover
The permanent search can begin once the company is stable. Boards that rush this step to calm nerves often end up repeating it.
The handover from interim to permanent leader should be planned from the start. Challenger's count of 22 completed interim terms in a single month is a reminder that interim roles are designed to end. The best ones end with a successor who inherits a clear picture, an aligned team and momentum, rather than a backlog of deferred decisions.
What strong boards do before any of this happens
The strongest position is to have thought this through before it is needed. That means three things:
- An emergency succession plan that names who takes charge on day one.
- A short list of internal leaders who could step up, and what support they would need.
- A relationship with a partner who can supply an experienced interim at short notice.
None of this is expensive. All of it is far easier to arrange in a calm quarter than in the week a chief executive resigns.
How Grant & Graham USA helps
Grant & Graham USA Inc. is based in San Diego and coordinates the Grant & Graham network across North America. We place senior interim executives, including chief executives, chief operating officers, chief revenue officers and technology leaders, who have held these roles before and can take accountability from the first week.
For US companies with European parents, customers or operations, we also bring the group's experience of working on both sides of the Atlantic, from London, Amsterdam and Tallinn.
If your board is thinking about succession, or facing a transition now, we would be glad to talk it through.
Explore our interim management practice, or book a confidential call with Andrew Collins.
Data: Challenger, Gray & Christmas, August 2026 CEO turnover report.
