Sunday, April 22, 2007

CEO Turnover

Here is a leadership-related issues economic developers should be looking at: CEO turnover. At one time we looked to the business community to provide continuity in economic development leadership.

(Click on image to enlarge)

Many EDOs have been concerned about political leadership not being able to provide continuity over time on key issues. With the turnover of top executives growing, will this undermine the continuity objective sought by EDOs that look to business leadership?

CEO departures at the largest 1000 U.S. companies reached record levels according to global communications consultancy Burson-Marsteller's 2005 CEO Succession Tracking Survey. Since 2000, nearly one-half (470) of Fortune 1000 companies have a new CEO sitting in the corner office. Other findings include:

* CEO departures increased 126 percent since 2000 (129 CEO departures in 2005 versus 57 in 2000).

* CEO departures increased 32 percent year over year (129 CEO departures in 2005 versus 98 in 2004).

* The number of new outsider CEOs increased 67 percent since 2004 (43 percent outsider CEOs in 2005, up from 34 percent in 2004). An influx of outsider CEOs may signal a significant shift in the business landscape.

Read more here.

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