The turnover of FTSE 100 chief executives has tumbled to a five year low as companies choose to hold onto top leadership amid ongoing economic volatility.

Executive churn this year is on track to fall to the second lowest level seen since 2012, according to data from AJ Bell, as boards opt for stability. Nine chief executive changes have occurred since January, below the typical average of 13 annually since 2000. 

Babcock, Diageo, GSK and Rentokil are among the firms who replaced the person in the top job, while British Land has also announced it will welcome a new chief executive set to start in 2027.

Don’t rock the boat

Finance director turnover has also cooled, falling from 25 changes last year to just 15 so far in 2026. 

Diageo and Barrett Redrow were the two firms who replaced their finance chief as well as their chief executive, while BT and Vodafone also switched out their top financial officers.

The downfall in turnover has been credited to a desire to “not to rock the boat” amid widespread market volatility caused by the conflict in the Middle East.

Swelling cost pressures off the back of energy market shocks has left firms unable to justify overhauls to leadership, as replacing executives triggers lengthy strategy resets, including portfolio restructuring, supply chain overhauls and assessing headcount, which many firms cannot afford.

“For some companies, it might be the wrong time to rock the boat with new leadership, maintaining…continuity may be viewed as the lower-risk option,” said Dan Coatsworth, head of markets at AJ Bell.

Halting at the top

The index has also managed to avoid the growing influence of activist investors, which “often act as a catalyst for leadership change”.

Activists, which are typically US and European hedge funds, are known to exert their influence over the running of UK listed companies amid turmoil. Earlier this year, Domino’s faced calls from its activist investor Browning West to return more capital to shareholders.

Greggs also battled pressure from Singapore-based Lauro asset management to cut costs to avoid a takeover bid earlier this year.

Despite the pushes to change company dealings, minimal firms have faced pressure to make changes at the top.

Coatsworth identified distribution group Bunzl and Premier Inn owner Whitbread as groups who are in the most hot water with activist investors. 

Bunzl’s chief executive Frank van Zanten has been in the role since April 2016 and has brought in a 61 per cent total return for the group’s shareholders, which is less than half the 146 per cent from the FTSE 100. 

Meanwhile, Whitbread boss Dominic Paul, has caused shareholders to lose 6.6 per cent of their investment, even after accounting for dividends since taking over in 2023. 

Activist shareholder Corvex recently called for one of its representatives to join the board.

Coatsworth said:“Activists typically push for new management… Bunzl and Whitbread have encountered their fair share of challenges of late, meaning disgruntled investors might welcome an activist shake-up.”