Chief executive turnover in decline as more firms hire from within
The turnover rate among chief executives is in decline as blue-chip firms increasingly turn to internal candidates for the top jobs.
New figures published today revealed the turnover rate for FTSE 100 chief executives over the past year was just 10 per cent, down from 14 per cent in the previous 12 months.
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As a result, the average tenure for bosses at top companies has risen to five years and six months, compared to five years and two months in 2018.
This represents a reverse of a stagnation in average tenures over the past three years.
The findings, published by recruitment firm Robert Half, also showed that companies are increasingly looking to internal candidates to fill the top positions.
Roughly 70 per cent of new chief executives were hired internally, bringing the total across the FTSE 100 to 46 per cent. Last year 40 per cent of top bosses were internal hires.
In March insurance giant Aviva appointed veteran executive Maurice Tulloch, who has served at the firm for 27 years, as its new chief executive.
Unilever boss Alan Jope is also a prominent internal hire, having joined the firm as a graduate marketing trainee in 1985.
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“Following a long period of decline we have reached an inflexion point in the average tenure of today’s chief executives, driven by lower rates of turnover,” said Charlie Grubb, UK managing director of executive search at Robert Half.
“While workplaces are undoubtedly going through a period of substantial change and demanding new skill sets, it is encouraging that this isn’t resulting in knee-jerk changes of leadership.”
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