Wednesday, February 01, 2006

CEO Churn


We released our findings yesterday on how many Fortune 500 CEOs exited their jobs in 2005. CEO Churn is on the increase (into the stratosphere):

1.CEO departures increased 126 percent since 2000 (129 CEO departures in 2005 versus 57 in 2000)
2.CEO departures increased 32 percent year over year (129 CEO departures in 2005 versus 98 in 2004)

One has to wonder why anyone would want the chief executive job in the first place. Boards are less patient and as worried about financial liability as CEOs. There is no room for failure or risk-taking. A top recruiter once said: "We are asking them to pitch no-hitters every day." I have always thought that all those departed CEOs should not take up golf but be more proactive about this sorry situation. An Advisory CEO Corps could be established to mentor CEOs as they begin new jobs or hit particularly rough patches in their tenures. Perhaps the Business Roundtable could provide a rotating selection of seasoned CEOs willing to provide counsel for these pressured captains of industry who do not know where to turn.

Although I would like to be able to say that better leadership training is needed, most CEOs report that nothing prepares you for the job.

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