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How Companies Manage CEO Turnover across the Globe [Report]

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How Companies Manage CEO Turnover across the Globe [Report]

Most companies around the global prefer to hire their CEOs locally or from within, a new study has found. 83% of companies that hired a CEO in 2012 chose one from the country where their headquarters is located.

This recent report by Strategy&, titled “Time for New CEOs: The 2012 Chief Executive Study” details global trends in CEO hiring and turnover, grouping Arab companies into either the “Other Mature” category, like Bahrain, or “Other Emerging” category including Egypt and Saudi Arabia. Though the report covers broad groupings of countries, instead of a purely regional focus, the statistics are still telling.

Here are a few statistics about global CEO turnover and how things have changed, or stayed the same, in 2012:

  • 71% of new CEOs in 2012 are insiders—people who were promoted from within.
  • 25% of new CEOs in 2012 have worked at the same company for their whole career.
  • 55% of this year’s new CEOs joined their current company from one in the same industry, whether they did so as CEO or in another position.
  • New insider CEOs in 2012 have a median tenure at their company of 12 years, ranging from a low of eight years in Western Europe, and in Brazil, Russia, and India, to a high of 33 years in Japan.
  • Only 5% of the incoming CEOs in 2012 are women—a notable rise from the 3% average over the prior three years, but still disappointing.
  • The apprenticeship model—where an outgoing CEO remains or becomes chairman of  the board to mentor an incoming CEO—is a fairly common succession model; in 2012, the outgoing CEO remained or became chairman of the board in 29% of all planned transitions.
  • 29% of new CEOs in 2012 have an MBA.
  • Western Europe is the only region that supplied new CEOs to all the other regions in 2012.

To learn more about CEO turnover trends around the globe, download the full report from the grey box on the right.

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