The decreasing length of time CEOs are spending in their jobs could result
in long-term harm to organisations, HR consultancy DBM has warned in its annual
global survey of CEO turnover.
The survey, Turnover at the Top: Research Highlights from a Global Study,
shows the median tenure for a global CEO is just 2.75 years, with the UK
showing one of the lowest average lengths of service.
In all, 62 per cent of CEOs in the UK had less than three years in the job.
This compares to an average of 50 per cent of CEOs overall elsewhere.
The survey reveals 86 per cent of company heads are still chosen from within
the organisation – indicating a clear opportunity for companies to focus on
succession planning.
On average a CEO will have spent more than 20 years with a company before
reaching the top.
However, only 2 per cent of the 481 large companies surveyed rated their
succession planning as excellent, two-thirds described them as fair or worse.
John Gilkes, head of DBM’s International Directors Centre, said:
"Quarterly reporting, mass industry consolidation and the growing emphasis
on corporate governance mean CEOs must demonstrate visible short-term bottom
line growth, often at the expense of the long-term company strategy."
