Top reasons to resign from a leadership position

Article

The best leaders know when to leave. Fabrice Coudray, Managing Directors at Robert Half Executive Search, explores the top reasons to resign from a leadership position.

C-suite leaders are typically in post for around five to seven years. While in this position, they will be visible to everyone in the business, in the market and on social media. Shareholders, customers and colleagues will be watching, impatient for results. If they are lucky, they will choose when they leave, otherwise they may be forced to go.

In this article, we will explore reasons why c-suite executives should resign from a leadership position. From straightforward scenarios: achieving their goals or finding another opportunity, to more complex ones: losing shareholder confidence, or a change in direction for the business.

At this level, knowing when to leave is a superpower. Get it right, and a leader remains employable, agile and responsive; get it wrong, and their career can take an unexpected turn for the worse.

1. Job done: When you have achieved your goals as a leader

Let’s say a leader is appointed to transform a business, through a series of acquisitions. They might have two or three years to acquire and another two to integrate. Often, when they achieve the goal, it will be time for them to resign from their leadership position.

Some might stay for another phase of growth, but most will be ready for a new challenge. This example is a positive reason to leave, and the easiest one.

There are also less straightforward examples. One could be that the shareholders might change strategy, and you realise you need part ways after initially achieving the target that was set out.

2. Loss of confidence in the CEO

Imagine this scenario: a new chief executive is in the business. There is a well-established executive leadership team, board of directors, and a clear roadmap. But in the first few weeks, the CEO decides they want to get rid of someone. The shareholders strongly disagree with the decision; in fact, they actively try and block it. Straightaway, there is tension at the top.

What should the CEO do? If they do not have the confidence of the shareholders, it will be difficult to implement any plans. When internal politics are playing a role at this stage, it will be worth recognising that and deciding to resign from the leadership position quickly.

3. Opportunity knocks: Aligning personal and professional values

We are seeing more c-suite leaders seeking roles linked to their values. Many want a better balance with family life, and to spend time with their children before they grow up. C-suite leaders have a personal epiphany at odds with the strategic direction of a business, they will often start looking for an exit aligned with their values.

How do personal values and motivators influence professional decision making? While skills and experience will always matter for executive leadership, what motivates them will heavily influence career decisions. Just because two people have similar experience, doesn’t mean they are right for the same job.

We often see aspiring c-suite leaders taking on other roles, even after years of effort, because they realise an executive role doesn’t feel right. At the outset, aspiring leaders should therefore consider intrinsic and extrinsic motivators, leadership values, and business ethics. Because together, they will play a pivotal role in their success – and the success of others.

Moving on by choice is a privilege, but it’s worth getting the timing right. As c-suite leaders consider their tenure at the top, there will be a plethora of personal and professional reasons to leave. But when they choose to resign from a leadership position, it will influence their prospects. In a growing number of cases, it will also influence the very personal legacy they want to leave behind.

If you are in need of some support in your leadership hiring journey, our executive search team can help you find the senior talent you are looking for. Or for more tips and advice, visit our c-suite insights today.

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