There has never been so much pressure on chief executives, at least according to firms tracking leadership departures. More than 1,800 global CEOs at public, private, government and non-profit organisations announced their resignations between January and October 2024, a record high for the 10-month period, according to Challenger, Gray & Christmas (CGC), an outplacement firm. 

Leadership advisory Russell Reynolds Associates has also tracked more global CEO departures at publicly listed firms year-to-date in 2024 than 2023. Each CEO departure is unique, caused by anything from personal misconduct (Bernard Looney at BP) to safety concerns (Boeing’s Dave Calhoun), but often boils down to poor financial results.

“The buck stops with the CEO who ultimately bears the responsibility for a company's performance,” says Andy Challenger, senior vice president at CGC, adding that shareholder value and profitability are the primary metrics used.

While different in nature, the high-profile CEO exits at US chipmaker Intel and European automaker Stellantis, coincidently both on December 1, hold another lesson in leadership. Both executive departures came after failed investment-led turnaround plans and show how CEOs are a driving force behind major FDI. And if they fail to deliver results, quarterly pressure from corporate boards can eventually mean leaders get the axe. 

Take Pat Gelsinger. After working for three decades as an engineer at Intel, Gelsinger returned as CEO in 2021 to oversee an ambitious plan to restore Intel’s chipmaking leadership after losing its competitive edge. He was later forced to resign on December 1 after losing confidence in the board. 

During Gelsinger’s tenure, Intel announced greenfield FDI worth almost $90bn, fDi Markets shows, including plans for new fabs in Germany, Poland and Italy, and expansions in Israel and Malaysia. In the US, it pledged to invest up to $100bn, including an expansion in Arizona and a massive new campus in Ohio. 

So could Gelsinger’s investment-led turnaround plan at the helm of Intel have been the root of his downfall? Despite Intel securing $7.86bn of US Chips and Science Act funding for its projects at home, many of its overseas investments have turned sour. The company paused its expansion in Israel in June, followed in September by the same in Poland and Germany, as it sought to make savings of $10bn.

“During a costly turnaround, scrutiny intensifies,” says Mr Challenger. “CEOs must clearly communicate realistic expectations to investors, striking a balance between transparency and caution. The key is to underpromise and overdeliver, ensuring they maintain credibility while navigating challenging times.” In the case of Gelsinger, he did neither after having to scrap major investments. 

Then there is Stellantis’s former CEO Carlos Tavares. The Portuguese auto veteran resigned on December 1 after “different views” emerged between him and the company’s board. Stellantis, which was formed by a merger in 2021 and owns brands like Peugeot, Fiat and Chrysler, has pursued its Dare Forward 2030 plan to produce electric vehicles (EVs). But the company now epitomises challenges facing the western auto industry in the face of Chinese competition. 

During Mr Tavares’s tenure, Stellantis announced $16.8bn-worth of greenfield FDI projects, fDi Markets shows, including plans to build factories in Canada, Argentina, France and the US. Tavares admitted in June 2024 that “arrogant” mistakes were made in the US, where its market share fell from 10.2% to 8.4% between the first six months of 2023 and 2024. 

Stellantis said on November 26 it would close its Vauxhall van factory in England. Ultimately, Tavares’s refusal to budge on the pace of the EV transition and Stellantis’s financial underperformance led to his demise.  

Early signs are that Stellantis has continued its FDI plans after Tavares’ departure, with the automaker announcing on December 10 plans for a €4.1bn battery joint venture with China’s CATL in Spain as part of a partnership struck in 2023. 

CEO downfalls after massive FDI plans have become a common theme in 2024, including batterymaker Northvolt’s CEO Peter Carlsson and food giant Nestle’s former head Ulf Mark Schneider. Scrutiny on the performance of CEOs leading the charge of international expansion has never been greater.

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