Any CEOs concerned that they are about to lose that brilliant but impatient successor-in-waiting have some new data to perhaps calm them down.
New research indicates that the path to the corner office is a long one, particularly in the U.S., where experience and loyalty appear to outrank naked ambition.
Some 85% of top U.S. company CEOs are sourced internally, according to recruitment firm Heidrick & Struggles. Their research drew the conclusion after cataloging the CEOs of the 100 largest companies in each of the U.S., UK, Germany and France.
In Germany, 68% of CEOs had to rise through the ranks, though the rate of internal appointments in Britain and France was much lower, at 61% and 48%, respectively.
American CEOs also had to work harder. On average, they spent 20 years toiling at the same employer to earn that ultimate promotion, compared to no more than 14 years in the other three countries. Consequently, the age of the average CEO appointment in the U.S. was 52, compared to 50 in Germany, 49 in Britain and 48 in France.
A recent Spencer Stuart study found the average age of CEOs in the S&P 500 index rose by 4% over 10 years to 57.2 in 2016. However, according to Chief Executive’s CEO1000 Tracker, the average age of the 1,000 largest companies (public and private) is actually higher, at 58. Korn Ferry research also notes that the average of CEOs overall is 58.
As recently reported by Chief Executive, American CEOs appear to be getting older, too, perhaps thanks to general improvements in living standards that are stretching our life expectancies.
The Heidrick & Struggles analysis also found that the U.S. leads the way for female CEO appointments, though they still just account for 8% of the total. Chief Executive’s CEO1000 Tracker puts that number at 6%.
Heidrick & Struggles also reports that 69% of U.S. CEOs hold advanced degrees, with the proportion is much higher in France, at 86%. Finance is the most common functional background, rearing 31% of U.S. CEOs. Engineering formed the next-most common background, followed by operations and sales and marketing, tied for third.
You might also like:
Successful Chief Executive Transitions ~ Part 1: Capturing Opportunities, Minimizing Risks
Where are the Women CEOs?
Key Trends Among the Top 1,000 CEOs
Chief Executive Group exists to improve the performance of U.S. CEOs, senior executives and public-company directors, helping you grow your companies, build your communities and strengthen society. Learn more at chiefexecutivegroup.com.
0
1:00 - 5:00 pm
Over 70% of Executives Surveyed Agree: Many Strategic Planning Efforts Lack Systematic Approach Tips for Enhancing Your Strategic Planning Process
Executives expressed frustration with their current strategic planning process. Issues include:
Steve Rutan and Denise Harrison have put together an afternoon workshop that will provide the tools you need to address these concerns. They have worked with hundreds of executives to develop a systematic approach that will enable your team to make better decisions during strategic planning. Steve and Denise will walk you through exercises for prioritizing your lists and steps that will reset and reinvigorate your process. This will be a hands-on workshop that will enable you to think about your business as you use the tools that are being presented. If you are ready for a Strategic Planning tune-up, select this workshop in your registration form. The additional fee of $695 will be added to your total.
2:00 - 5:00 pm
Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations.
Limited space available.
10:30 - 5:00 pm
General’s Retreat at Hermitage Golf Course
Sponsored by UBS
General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.
The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.
