Less than 3% of the 2015 in­com­ing class of CEOs were women

Financial Mirror (Cyprus) - - FRONT PAGE -

In 2015, 17% of the largest 2,500 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% of the largest 2,500 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. The study, how­ever, has shown that the share of in­com­ing women CEOs fell to less than 3%.

It is worth not­ing that 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. Ac­cord­ing to the study: - Out­siders ac­counted for 22% of all CEOs brought in via a planned suc­ces­sion be­tween 2012-2015, up from 14% in 2004-2007;

- Al­most three-quar­ters of all out­sider CEOs were brought in dur­ing planned suc­ces­sions dur­ing that same pe­riod, up from 43% in 2004-2007.

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% in­sid­ers vs. 23% 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.

Glob­ally, the share of in­com­ing women CEOs fell to less than 3% in 2015, the low­est per­cent­age since 2011. Just ten of 359 in­com­ing CEOs in the class of 2015 were women. Fe­male CEOs are more of­ten hired from out­side the com­pany than male CEOs. About 32% of all in­com­ing and out­go­ing fe­male CEOs from 2004-2015 were out­siders com­pared to just 23% of males CEOs.

Some of the in­dus­tries that have been ex­pe­ri­enc­ing the most dis­rup­tion are also the ones that have brought in higher-thanaver­age shares of out­siders over the last sev­eral years. This in­cludes tele­coms (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 20122015, com­pa­nies head­quar­tered in Western Europe hired out­sider CEOs al­most twice as fre­quently as com­pa­nies head­quar­tered in U.S./Canada (30% vs. 18%, re­spec­tively).

Newspapers in English

Newspapers from Cyprus

© PressReader. All rights reserved.