A fifth of FTSE 100 firms changed CEO during pandemic
A fifth of FTSE 100 bosses have left their roles over the past year as the pandemic ravaged corporates and triggered an overhaul of boardrooms.
The outbreak of coronavirus saw a number of FTSE 100 tap shareholders for emergency funding as lockdown restrictions affected cashflow.
As a result of this, there were 20 chief executive changes last year, up 33 per cent from the previous year, according to research by New Street Consulting Group. Among them were Trainline and Fortnum & Mason bosses whose respective industries have felt the pain of the pandemic.
There were also 30 changes in financial chiefs since the start of the pandemic.
PwC figures point to shorter tenures for the UK’s bosses, now at 5.2 years compared to 8.3 years in 2010. This is partly because boards are far more cut-throat and are prepared to make changes at the top when necessary.
“The Board room has been an interesting environment in the last 12 months. Executives have faced disruption, discontinuity and extreme challenge to their operating models and assumptions,” Colin Mercer, New Street’s managing director said.
“This has demanded rapid innovation founded upon intense customer focus. Strategy horizons have shortened – agile implementation has been key.”
The consulting firm says this has been exacerbated by the current climate with teams recognising a major economic crisis can require a different skill set. This includes leaders experienced in restructuring, cost management and most importantly, risk management.
“The crisis may be redefining what business leadership looks like. The courage and wisdom to make crucial decisions based upon limited or ambiguous data, to act with confidence amid complexity and in particular the ability to unite and galvanise a remote and tired workforce – these are the new skills,” Mercer added.