Among the world’s biggest companies, CEOs are spending less time at the top, while instances of ethical failings are on the rise, survey finds
- PwC’s 2018 ‘CEO Success study’ shows a number of important trends underway affecting top corporate leaders
In the executive suite of the world’s largest listed companies, the length of time top corporate leaders can be expected to remain at the helm has fallen to a multi-year low, while the percentage being ousted for unethical conduct is at its highest since the turn of the millennium, according to a survey by PwC.
Among the world’s 2,500 largest public companies, 17.5 per cent changed their chief executive last year, reflecting the highest turnover rate recorded since 2000, according to PwC’s 2018 “CEO Success study”.
The study also found that the average length of tenure is decreasing. In 2000, a CEO could expect to remain in office for eight or more years, while in the last decade, average CEO tenure was just five years.
The study defines long-serving CEOs as having been in the position for 10 years or more. North American CEOs were the most likely to be long serving, at around 30 per cent, while in Europe the figure was just 19 per cent. In Japan the long-serving rate is 9 per cent, while in China the figure is 7 per cent.
Among regions, the CEO turnover rate in North American is trending down, from 17.9 per cent in 2000 to 14.7 per cent in 2018. The CEO turnover rate in western Europe was 10.2 per cent in 2000, but has climbed to 19.8 per cent in 2018.
In the United States long-serving CEOs were much more likely to also hold the position of chairman than in other regions, the study found.
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