Why Retired CEOs Return to Work: BCG Study Reveals Executive Transition Struggles
BCG survey shows only 40% of former $1B+ company CEOs are satisfied in year one of retirement
Only 40 percent of chief executive officers reported feeling satisfied with their transition to retirement in their first year after leaving office, according to new research published by Boston Consulting Group (BCG). The dissatisfaction has contributed to a wave of corporate boards successfully recruiting retired leaders back into top executive positions during periods of corporate transition and crisis.
New data published by Boston Consulting Group (BCG) in early August found that only 40% felt satisfied with their transition from hard-charging CEO to retiree in the first year after making the move. It seems that many CEOs, like millions of other Americans, underestimate the emotional upheaval that comes from suddenly having a lighter schedule, no longer having a role central to their identity, or no longer having the structure that a job gives them.
Major corporate boards have increasingly turned to unretiring executives to handle turnaround efforts. Boeing Co. appointed former Rockwell Collins chief executive Kelly Ortberg, 64, as its Chief Executive Officer in August 2024, coaxing him out of retirement to address ongoing manufacturing challenges and regulatory scrutiny. Companies such as Verizon Communications Inc. and Cracker Barrel Old Country Store Inc. have also recruited former chief executives to take leadership roles during periods of corporate instability.
“Is the decision to get a new CEO job really motivated by value creation where you know a unique skill that you bring that only you can do, or is it … really more fear or vanity?” asks Christine Barton, leader of BCG’s North America CEO Advisory practice.
Former Ulta Beauty chief executive Mary Dillon returned to corporate leadership in September 2022 to become chief executive officer of Foot Locker Inc. in her early 60s, roughly 15 months after stepping down from Ulta. Dillon previously noted that after leaving her position at Ulta, she had not realized how much she would miss having one primary operational focus and leading a retail organization.
The survey of former CEOs of companies with at least $1 billion in revenue found that 3 to 4 meaningful activities, such as serving on a board, being an advisor, or teaching, were the sweet spot where one can both still feel needed and useful but not overprogrammed.
To reduce reliance on unretiring former leaders, BCG recommended that corporate boards focus on building robust internal succession pipelines long before an executive prepares to leave. The study found that 90% of former chief executives felt satisfied with their retirement after one year, particularly when companies helped leaders prepare for active retirement through executive coaching tailored to building a post-corporate legacy.
