05/05/2016 12:52
In 2015, 17 % of the largest 2500 public companies in the world changed their CEO,according to PwC’s Strategy&
CEO turnover reaches a record high globally, with more companies planning for new chiefs from outside the company.
In 2015, 17 percent of the largest 2500 public companies in the world changed their CEO, more than in any of the previous 16 yearsof the CEO Success Study fromStrategy&, PwC’s strategy consulting business. The study, however, has shown that the share of incoming women CEOs fell to less than 3 percent.
It is worth noting that over the past several years more big companies have beendeliberatelychoosingtheir new CEO from outside of the company as part of a planned succession, an indication that hiring an outsider has become more of an intentional leadershipchoice than a necessity. According to the study:
• Outsiders accounted for 22 percent of all CEOs brought in via a planned succession between 2012-2015, up from 14 percent in 2004-2007
• Almost three-quarters of all outsider CEOs were brought in during planned successions during that same period, up from 43 percent in 2004-2007
The majority of companies have continued to promote insiders to the CEO positionand the study authors think this will remain the preferred succession-planning practice(77 percent insiders vs. 23 percent outsiders in 2015).Outsider CEOs have caught up and closed a performance gap that the study previously found between outsider and insider CEOs, possibly strengthening the case for considering a new leader from outside the company.
2015: Not the year of the woman CEO
Globally, the share of incoming women CEOs fell to less than 3 percent in 2015, the lowest percentage since 2011. Just 10 of 359 incoming CEOs in the class of 2015 were women.
Female CEOs are more often hired from outside the company than male CEOs are. Thirty two percent of all incoming and outgoing female CEOs from 2004-2015 were outsiders compared to just 23 percent of males CEOs.
More facts on the rise of outsider CEOs:
• Some of the industries that have been experiencing the most disruption are also the ones that have brought in higher-than-average shares of outsiders over the last several years. This includes telecommunications (38% of incoming CEOs from 2012-2015 were outsiders), utilities (32%), healthcare (29%), and energy(28%)
• On the other hand, IT (15%), materials (19%), retail and consumer (19%), and industrials (21%)hired the lowest share of outsiders from 2012-2015.
• From a regional perspective, from 2012-2015, companies headquartered in Western Europe hired outsider CEOs almost twice as frequently as companies headquartered in U.S./Canada (30% vs. 18%, respectively)
To learn more about the 2015 CEO Success Study, visit www.strategyand.pwc.com/ceosuccess.
CEO turnover reaches a record high globally, with more companies planning for new chiefs from outside the company.
In 2015, 17 percent of the largest 2500 public companies in the world changed their CEO, more than in any of the previous 16 yearsof the CEO Success Study fromStrategy&, PwC’s strategy consulting business. The study, however, has shown that the share of incoming women CEOs fell to less than 3 percent.
It is worth noting that over the past several years more big companies have beendeliberatelychoosingtheir new CEO from outside of the company as part of a planned succession, an indication that hiring an outsider has become more of an intentional leadershipchoice than a necessity. According to the study:
• Outsiders accounted for 22 percent of all CEOs brought in via a planned succession between 2012-2015, up from 14 percent in 2004-2007
• Almost three-quarters of all outsider CEOs were brought in during planned successions during that same period, up from 43 percent in 2004-2007
The majority of companies have continued to promote insiders to the CEO positionand the study authors think this will remain the preferred succession-planning practice(77 percent insiders vs. 23 percent outsiders in 2015).Outsider CEOs have caught up and closed a performance gap that the study previously found between outsider and insider CEOs, possibly strengthening the case for considering a new leader from outside the company.
2015: Not the year of the woman CEO
Globally, the share of incoming women CEOs fell to less than 3 percent in 2015, the lowest percentage since 2011. Just 10 of 359 incoming CEOs in the class of 2015 were women.
Female CEOs are more often hired from outside the company than male CEOs are. Thirty two percent of all incoming and outgoing female CEOs from 2004-2015 were outsiders compared to just 23 percent of males CEOs.
More facts on the rise of outsider CEOs:
• Some of the industries that have been experiencing the most disruption are also the ones that have brought in higher-than-average shares of outsiders over the last several years. This includes telecommunications (38% of incoming CEOs from 2012-2015 were outsiders), utilities (32%), healthcare (29%), and energy(28%)
• On the other hand, IT (15%), materials (19%), retail and consumer (19%), and industrials (21%)hired the lowest share of outsiders from 2012-2015.
• From a regional perspective, from 2012-2015, companies headquartered in Western Europe hired outsider CEOs almost twice as frequently as companies headquartered in U.S./Canada (30% vs. 18%, respectively)
To learn more about the 2015 CEO Success Study, visit www.strategyand.pwc.com/ceosuccess.
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