Two departures in a single week.
In late spring, the Co-op confirmed that CEO Shirine Khoury-Haq would step down after four years, her exit shadowed by reports of a challenging internal culture and a £126 million annual loss. Days earlier, N Brown Group announced that Steve Johnson would step away after a decade leading the retailer through transformation.
The press releases followed a familiar script: “personal decision”, “right time”, “new chapter”. Corporate language is always carefully managed.
But behind that choreography lies a reality rarely acknowledged: leadership at the top has become more isolating, more exposed, and increasingly unsustainable.
And that isolation carries a cost, what I call the loneliness premium.
The Hidden Cost of Leadership Isolation
We talk endlessly about the pressures facing business leaders - margin compression, digital disruption, supply chain volatility, and the constant demand to deliver growth.
What we don’t talk about enough is how those pressures feel in practice.
Because leadership, particularly at CEO or founder level, is structurally isolating.
Each step up narrows your circle. By the time you reach the top, it often disappears entirely.
- Your board expects certainty
- Your team expects direction
- Your investors expect confidence
What you can’t do—at least not easily—is admit uncertainty. You can’t openly say, “I don’t know,” or “this decision is keeping me up at night.”
This isn’t weakness. It’s the reality of leadership.
And in sectors like retail or fast-moving SMEs, where decisions are immediate and visible, that isolation intensifies.
🔗 Read article: "The Lonely Entrepreneur? He’s Still Lonely…"
The Data Behind the Loneliness Premium
This isn’t anecdotal, it’s measurable.
- 50% of CEOs report experiencing loneliness (Harvard Business Review)
- 61% say it negatively impacts performance
- 55% experienced a mental health challenge in the past year (2024 data)
- CEOs working in isolation are 35% more likely to suffer decision fatigue
- This contributes to a 14% increase in leadership turnover
At the same time, CEO exits are rising sharply:
- 51 retail CEO departures in 2025 (up 28% year-on-year)
- 446 CEO exits across all sectors—the highest on record
There’s no single cause. Market conditions, board expectations, and transformation pressures all play a role.
But isolation is the silent accelerant.
It doesn’t show up in KPIs but it shows up in outcomes: delayed decisions, missed opportunities, and leaders leaving sooner than planned.
🔗 Read article: 'Four tips to help combat loneliness in business'
What High-Performing Leaders Do Differently
After three decades of working in executive search, one pattern stands out to me.
The leaders who thrive long-term don’t just have strong strategies or impressive CVs.
They have someone to talk to.
Not a line manager. Not a board member. Not even a formal coach.
A peer.
Someone who:
- Understands the weight of leadership firsthand
- Has no internal or hidden agenda
- Offers honest, unfiltered perspective
I recall placing a CEO into a private equity-backed retail business. Within months, performance improved significantly.
But behind the scenes, she was struggling, not with the workload, but with the isolation.
Her board was supportive but stretched. Her team depended on her. Her personal network couldn’t fully relate.
What she experienced wasn’t burnout, it was a gradual erosion of clarity caused by carrying every decision alone.
She ultimately delivered a strong exit but she later described it as the loneliest period of her career.
Five Questions Every SME Board Should Ask
For UK SMEs, whether founder-led or scaling, this isn’t just a corporate issue, it’s a business risk.
If you have a managing director, CEO or founder making critical decisions, ask yourself:
1. Who does our leader really talk to?
Not who they report to, but who they confide in. If the answer is “no one,” that’s a vulnerability.
2. Are we enabling honest conversations?
If your leadership only tells you what you want to hear, decision quality suffers. Psychological safety at the top is a governance issue, not an HR initiative.
3. What peer support exists?
Peer advisory boards, mentoring networks, or external leadership groups are not luxuries. They are business infrastructure.
4. Do we track leadership wellbeing proactively?
If you only discuss resilience during an exit, you’re too late. Treat it as a leading indicator, not a lagging one.
5. When did we last ask—and listen?
A simple but powerful question:
“How are you, honestly?”
Asked with intent, it can surface risks long before they impact performance.
Why Peer Advisory Boards Matter More Than Ever
For SMEs in particular, structured peer support, such as peer advisory boards, is becoming one of the most effective leadership tools available.
They provide:
- Independent thinking
- Real-world insight from fellow business owners
- Accountability without internal politics
- A confidential space to test decisions
- Camaraderie and friendship
In an era where AI-driven tools, business analysis tools, and data dashboards are transforming decision-making, one thing remains irreplaceable ...
Human perspective.
No algorithm can replicate the value of a candid conversation with someone who understands your challenges because they’re living them too.
🔗 Read article: The benefits of advisory boards for small business owners
The Strategic Cost of Doing Nothing
Businesses invest heavily in hiring leaders:
- Executive search fees
- Onboarding programmes
- Strategic alignment
Yet too often, support stops once the appointment is made and that’s where the loneliness premium begins.
And it shows up as:
- Slower decision-making
- Reduced innovation
- Leadership churn
- Missed growth opportunities
For SMEs focused on business growth strategies, this is critical.
Growth doesn’t stall due to lack of ambition, it stalls when leaders are carrying too much, alone.
The Bottom Line
Leadership isolation is not inevitable.
It’s a design choice.
The most successful organisations understand this:
Hiring the right leader is only half the equation.
Ensuring they’re supported is what drives long-term success.
If you want better decisions, stronger performance, and more resilient leadership, the answer isn’t more pressure.
It’s better support.
The Questions Leaders Can’t Afford to Ignore
What is the loneliness premium in leadership?
The loneliness premium refers to the hidden business cost of leadership isolation, including reduced decision quality, increased turnover, and slower organisational performance.
How does isolation affect CEOs and business owners?
Isolation can lead to decision fatigue, stress, and reduced clarity, ultimately impacting business outcomes and increasing the likelihood of leadership turnover.
What can SMEs do to support their leaders?
SMEs can implement peer advisory boards, mentoring networks, and create safe environments for honest conversations to reduce isolation and improve decision-making.
Maarten Jonckers facilitates peer advisory boards for business owners through The Alternative Board, he also is the Managing Director of Nicholas Alexander Executive Search, specialising in senior leadership appointments.
🔗 www.nicholasalexander-es.com
🔗 https://www.thealternativeboard.co.uk/thames-valley-west
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