CEO moves bad for business

first_img Comments are closed. The decreasing length of time CEOs are spending in their jobs could resultin long-term harm to organisations, HR consultancy DBM has warned in its annualglobal 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 UKshowing 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 withinthe organisation – indicating a clear opportunity for companies to focus onsuccession planning. On average a CEO will have spent more than 20 years with a company beforereaching the top. However, only 2 per cent of the 481 large companies surveyed rated theirsuccession 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 emphasison corporate governance mean CEOs must demonstrate visible short-term bottomline growth, often at the expense of the long-term company strategy.” CEO moves bad for businessOn 16 Jul 2002 in Personnel Today Related posts:No related photos. Previous Article Next Articlelast_img read more