CEO Turnover at a Record High Globally, With More Companies Planning for New Chiefs from Outside the Company
(Thomson Reuters ONE) -
Less than 3% of the 2015 incoming class of CEOs were women according to PwC's
Strategy&
NEW YORK, April 18, 2016 (GLOBE NEWSWIRE) -- In 2015, 17 percent of the largest
2500 public companies in the world changed their CEO, more than in any of the
previous 16 years of the CEO Success Study from Strategy&, PwC's strategy
consulting business. Over the past several years more big companies have
been deliberately choosing their 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 leadership choice than a necessity.
* 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
Infographics accompanying this announcement are available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/0e98924d-ba01-4a31-af01-
51d1204d0c5f
http://www.globenewswire.com/NewsRoom/AttachmentNg/0feee120-b27a-
45fb-8512-430688c669de
The 2015 CEO Success Study is available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/665f2ba9-eb15-
4f6d-8125-448b29662d6c
The majority of companies have continued to promote insiders to the CEO position
and 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.
"Hiring an executive from outside a company to serve as chief executive officer
used to be seen as a last resort. That is not the case anymore with the
disruptive market-related changes that companies are facing today. While an
internal CEO candidate may have an excellent record of achieving the business
goals the company has pursued in the past, boards are recognizing that this
candidate may lack the skills needed to lead the company through the changes
necessary to win in the future," says Per-Ola Karlsson, partner and leader of
Strategy&'s organization and leadership practice for PwC Middle East.
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.
The news was even worse in the U.S. and Canada where the share of incoming women
CEOs fell for the third year to the lowest in the study's history. Surprisingly,
there was just one woman among the total 87 incoming CEOs in the U.S. and Canada
last year (1 percent, compared to 4 percent in 2014 and over 7 percent in 2012).
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.
"That women CEOs are more often hired from the outside may be an indication that
companies have not been cultivating enough female senior executives in-house,"
says DeAnne Aguirre, an advisor to executives on talent and culture with
Strategy& and a principal with PwC U.S. "One of the reasons why women may be
more likely to be outsiders is that their development is not being recognized
within their own organization, and therefore they may be more likely to be
attracted away. The fact that more companies are considering outsiders might
improve the chances for women CEOs in the future."
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)
"Boards of directors following well thought-through succession plans should have
a deep bench of strong, internal candidates. However when the company needs to
make transformational changes away from their former strategic and operating
plans, boards should factor the outsider option into their succession planning,"
says Gary Neilson, thought leader on organizational design and leadership with
Strategy&, and a principal with PwC U.S. "Outsiders don't have biases and
commitments built up over the years, and can make changes more objectively. They
also may be able to look at the organization from a broader perspective based on
an understanding of what the world will require in the future."
"Whether the new leader comes from inside or outside the organization, companies
that plan for CEO succession more carefully are more likely to be better
performing companies in general."
To learn more about the 2015 CEO Success Study,
visit www.strategyand.pwc.com/ceosuccess. A copy of the global study, including
findings by geography and industry are available from the media contact.
Additional multi-media assets including infographics and video are also
available.
About the 2015 CEO Success Study
Strategy& identified the world's 2,500 largest public companies, defined by
their market capitalization (from Bloomberg) on January 1, 2015. We then
identified the companies among the top 2,500 that had experienced a chief
executive succession event in 2015 and cross-checked data using a wide variety
of printed and electronic sources in many languages. For a listing of companies
that had been acquired or merged in 2015, we used Bloomberg. In this year's
report, we also look at the circumstances in which outsider CEOs are being
hired, and the data on the characteristics of the companies that are hiring
them.
About Strategy&
Strategy& is a global team of practical strategists committed to helping you
seize essential advantage. We do that by working alongside you to solve your
toughest problems and helping you capture your greatest opportunities. We bring
100 years of strategy consulting experience and the unrivalled industry and
functional capabilities of the PwC network to the task. We are part of the PwC
network of firms in 157 countries with more than 208,000 people committed to
delivering quality in assurance, tax, and advisory services. To learn more about
PwC's Strategy&, visit www.strategyand.pwc.com.
© 2016 PwC. All rights reserved. PwC refers to the PwC network and/or one or
more of its member firms, each of which is a separate legal entity. Please
see www.pwc.com/structurefor further details.
Contact:
Kiran Chauhan
Strategy&, PwC's strategy consulting business
T: + (416) 890-8695
kiran.chauhan(at)pwc.com
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: PwC via GlobeNewswire
[HUG#2004596]
Unternehmensinformation / Kurzprofil:
Datum: 19.04.2016 - 01:01 Uhr
Sprache: Deutsch
News-ID 464735
Anzahl Zeichen: 8488
contact information:
Town:
New York
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 321 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"CEO Turnover at a Record High Globally, With More Companies Planning for New Chiefs from Outside the Company"
steht unter der journalistisch-redaktionellen Verantwortung von
PwC (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
