1、2023 Spotlight C-Suite Turnover in the USThought leadership Delinian Limited and its affiliated companies.March 2023.This publication is for your information only and is not intended as an offer,or a solicitation of an offer,to buy or sell any product or other specific service.All information and op

2、inions indicated are subject to change without notice.James Lavell Chief Executive Officer Richard Green Chief Commercial OfficerMark Hevey Senior Vice President and Global Head of Sales,Professional IntelligenceMichael Phillips Vice President,Marketing and CommunicationsAmanda Cifone Senior Marketi

3、ng DirectorLead authors Maya Imberg Senior Director,Head of Thought Leadership and AnalyticsMaeen Shaban Director of Research and AnalyticsDesignStephanie Warburton Director of Visual CommunicationsDawn Lastre Visual Communications Coordinator2023 Spotlight:C-Suite Turnover in the USThe makeup and s

4、tability of the senior leadership team has important ramifications for any organization.Executive recruitment is a significant business expense,while the long tenure of the CEO,in particular,has been linked to providing greater value for shareholders.A certain amount of staff turnover at the top is

5、necessary,however,and part of the cycle that enables senior executives to hone their professional acumen,thereby increasing the expertise available in the overall business ecosystem.This report uniquely brings together data to examine turnover trends in relation to five key leadership roles the CEO,

6、CFO,COO,CMO and CHRO1 at the largest 1,000 US companies,those that make up the Fortune 10002.While focusing on 2022,we also look back to 2018 to gain additional insights and consider a variety of measures and characteristics of turnover.By providing insight into C-suite turnover trends and patterns,

7、this report provides an essential read for businesses,executive recruitment and other organizations looking to engage with this impactful group of senior executives and make the most of their talent.In 2022,turnover increased among the three most senior C-suite roles CEOs,CFOs and COOs.Turnover rose

8、 most rapidly among CEOs,increasing by three percentage points to 13.2%.It rose to 15.9%among CFOs and 27.2%among COOs.The increased turnover of CEOs and CFOs is likely to have been caused,in part,by a build-up of delayed retirements,with boards persuading these top executives to stay on to guide th

9、eir businesses through the pandemic and subsequent geopolitical disruption.Among the key five C-suite positions,CEOs and CFOs have the lowest levels of turnover.Over 2018-22,CEOs had the lowest average rate of annual turnover(11.8%)by some distance,followed by CFOs(16%).Given that these two position

10、s exert a critical influence across a business,their arrivals and departures are more momentous and,necessarily,less frequent.Turnover is highest among COOs(27.3%)and CMOs(21.2%)these higher rates are better understood within the context of the distinctive nature of these two roles.Female executives

11、 have a shorter tenure in every position.Across each of the five C-suite roles,women stayed for less time than their male counterparts,particularly in CMO positions.A number of factors are likely to be at play,including headwinds hampering female advancement and the well-researched“glass cliff”pheno

12、menon,where women are more likely to be appointed to high-risk leadership positions when firms are struggling or in times of general economic crisis or restructuring.CEOs and CFOs of health and technology companies are among those with the highest turnover.Sectors particularly vulnerable to endogeno

13、us shock and disruption experienced a high turnover of CEOs and CFOs.Among the major sectors of the Fortune 1000,health had one of the highest turnovers of CEOs and CFOs(15%and 18.2%annually over the past five years respectively).Technology is one of the top three sectors for highest CEO turnover,wi

14、th an average annual rate of 13.4%from 2018 to 2022.Key findings1 CEO stands for chief executive officer;CFO for chief financial officer;COO for chief operating officer;CMO for chief marketing officer;and CHRO for chief human resources officer.2 The 1000 largest companies by revenue that are either

15、US incorporated or authorized to conduct business in the US and for which data is publicly available,published annually by Fortune magazine.Altrata|2023 Spotlight:C-Suite Turnover in the US|3 Employee retention and its corollary,employee turnover,are high on business agendas in todays competitive an

16、d specialized labor market.Turnover is the measure of the movement of people through a business.It can be defined as the proportion of employees that leave an organization during a set period,typically calculated annually3.While turnover includes involuntary departures,such as redundancies,firings a

17、nd post-M&A restructuring,most turnover among employees and those in the C-suite,such as the CEO,is planned or voluntary4.Why C-suite turnover matters3 The Chartered Institute of Personnel and Development(CIPD)defines turnover more technically as“the proportion of employees who leave an organization

18、 over a set period(often on a year-on-year basis),expressed as a percentage of total workforce numbers”.While most turnover is planned,it can also include involuntary departures(such as redundancies,firings and post-M&A restructuring)in a measure known as“crude”turnover.4 What Happens after a Legend

19、ary CEO Departs?,Strategy&,PwC;Revelations From Workforce Turnover,ADP Research Institute,2018.5 Cunningham LA.“Long-tenured CEOs can take a business from good to great and these companies have them.”MarketWatch,April 17,2021.6 Limbach P.“CEO tenure and firm value.”Harvard Law School Forum on Corpor

20、ate Governance,August 18,2021.While high turnover can be perceived as an indication of corporate instability,a certain amount is necessary to refresh a business by bringing in new perspectives and experience.It is also part of the cycle that builds the professional experience of individuals,feeding

21、into the expertise available within the overall business ecosystem.Deciding on optimum tenure for senior executives particularly the most influential roles of CEO and CFO is not straightforward.Executive recruitment is a significant business expense,and long CEO tenure has been linked to greater val

22、ue for shareholders as the top men and women A mixed bag for businesses enter their“golden years”5 of accumulated experience,knowledge and relationship capital.Nevertheless,even the best matches between company and individual can be overtaken by changing external circumstances or the natural evoluti

23、on of a business6.In this report,we examine turnover among five of the key leadership roles at Fortune 1000 companies.We focus on 2022 but also look back over the past five years.By gaining insight into these trends and patterns,businesses can improve their leadership planning and retention strategi

24、es,which are of crucial importance to the health of a business in the long term.How do we define turnover and who do we include?The rate of turnover can be defined as the proportion of employees that leave an organization during a set period,calculated annually.For this report,we include anyone who

25、has left their role,regardless of the circumstance be it planned,forced or due to restructuring following a merger or acquisition(M&A)or whether they have stayed with or left the company.Altrata|2023 Spotlight:C-Suite Turnover in the US|4 Over 2018-22,CEOs had the lowest average rate of annual turno

26、ver(11.8%)by some distance,followed by CFOs(16%).Turnover in the C-suiteThe rate of turnover is a strong indicator of the nature and influence of individual C-suite rolesTurnover by roleCFortune 1000 average annual turnover by role 2018-22Note:CEO stands for chief executive officer;CFO for chief fin

27、ancial officer;COO for chief operating officer;CMO for chief marketing officer;and CHRO for chief human resources officer.Source:BoardEx,an Altrata company,January 202316.0%CFO18.9%CHRO27.3%COO21.2%CMO11.8%CEOTurnover by role7 For further information on the characteristics and backgrounds of todays

28、CEOs and CFOs,see Altratas Role of the CEO 2023 and Role of the CFO 2022.The most influential C-suite positions,CEO and CFO,have the lowest turnover.Over the past five years,CEOs had the lowest average rate of annual turnover(11.8%)by some distance,followed by CFOs(16%).Given that these two position

29、s exert a critical influence across a business7,their arrivals and departures are more momentous and necessarily less frequent.Although these top-rung executive roles do experience some volatility of turnover in times of economic change and uncertainty,there is an overall sense that a reasonable tim

30、espan is required for a given strategic approach to play out.Altrata|2023 Spotlight:C-Suite Turnover in the US|5 8 Kidd K.“The challenges of the COOs job.”Thought Ensemble.9 Whitler KA and Morgan NA.“Why CMOs never last”,Harvard Business Review,July-August 2017.10 Engels N,Fischer-Kreer D and Brette

31、l M.“CHRO firm dinosaur versus CHRO role gorilla:the effect of CHRO company and role tenure on firms social performance.”Journal of Business Economics,November 29,2021.Turnover was highest among COOs(27.3%)and CMOs(21.2%)over 2018-22,and is better understood in the context of the distinctive nature

32、of these two roles.The turnover rate for CHROs sits in the middle of this group of five key roles.With an annual average turnover of 18.9%for the period of 2018 to 2022,the rate is similar but slightly higher than for CFOs.Over time,this role has evolved into one of strategic importance,with human c

33、apital one of the most important matters that company leaders continue to contend with.One reason for the middling turnover rate among CHROs is that time is needed for recruitment and retention strategies to affect company performance.Also,this role is not placed immediately in the firing line for o

34、perational or marketing failures,and is less likely to vary between organizations,meaning there are fewer reasons(in theory)for a CHRO to seek challenges elsewhere10.Turnover is highest among COOs and CMOs.The higher annual average turnover rates for COOs(27.3%)and CMOs(21.2%)are better understood w

35、ithin the context of the distinctive nature of these two C-suite roles.The COO tends to be an execution-focused position and is often in line to succeed the CEO.In fact,among new Fortune 1000 CEO appointees in 2022,a substantial 10.2%were in a COO role immediately prior to their promotion.The high t

36、urnover rate reflects,in part,the COOs substantial burden in terms of adapting strategically to evolving business conditions and taking responsibility for failed initiatives8.Also,the COO role,unlike most other executive positions,has rarely been a fixed one,and varies by company and sector,making i

37、t difficult to fill at times.The CMOs role,meanwhile,is dependent upon marketing cycles that are typically shorter than leadership strategy cycles,making their relationship with the CEO crucial to their ability to succeed.Like those of the COO,expectations of the CMO can sometimes extend beyond the

38、roles remit(for example,driving growth versus marketing communications),making it difficult for CMOs to exceed beyond expectations9.Altrata|2023 Spotlight:C-Suite Turnover in the US|6 Turnover in the C-suiteTurnover in 2022Trends varied by roleFortune 1000 turnover by role and year(%)Source:BoardEx,

39、an Altrata company,January 202311.413.411.010.213.215.318.115.015.515.930.029.524.425.527.225.418.523.019.719.318.421.018.817.318.8CEO1819202122CFO1819202122COO1819202122CMO1819202122CHRO1819202122Turnover in the C-suiteTurnover also increased in 2022 among CFOs(to 15.9%)and COOs(to 27.2%).As with C

40、EOs,this rise likely reflects some CFOs desire to seek pastures new or retire.However,it could also reflect boards searching for fresh talent(bringing in a different financial approach,11 “CFO and finance leaders”,PwC Pulse Survey,October 2022.12 Piaseck D.“Stepping up:what COOs will need to succeed

41、 in 2023 and beyond.”McKinsey&Company,October 2022.13 Sutherland S and Tan LK.“Boards and CHROs should support and challenge each other to get the most out of a shifting talent dynamic.”EY,December 15,2022.Turnover rose most rapidly among CEOs to 13.2%in 2022.The CEO role recorded the most marked ye

42、ar-on-year increase in turnover at three percentage points.In part,this increase was likely to have been caused by a build-up of delayed retirements,with boards persuading their CEOs to stay on to guide their businesses through the pandemic and subsequent geopolitical disruption.Also,despite the dif

43、ficult economic and political conditions of 2022,there were plenty of opportunities available for individuals who had successfully steered large companies through challenging times.skillset and experience)to see them through the likely cost containment and challenges of 2023 and beyond11.The acceler

44、ation of COO turnover over the past two years,following a slowdown,likely bears witness to accelerated changes to the operational environment as hybrid and remote working and supply disruption require businesses to restructure and refine their teams12.CHRO and CMO roles experienced a small drop in t

45、urnover in 2022,to 17.3%and 19.3%respectively.The status of CHROs,in particular,has risen amid the drive for diversity and following“the great resignation”,as CEOs and boards recognize they must work closely with their talent specialists to recruit and retain top candidates13.Despite still being hig

46、h at 19.3%,the rate among CMOs has dropped considerably since 2018.Altrata|2023 Spotlight:C-Suite Turnover in the US|7 Turnover in the C-suiteFactors affecting turnoverAge matters but route to appointment does not have a significant impactFortune 1000 average annual turnover by role and age group 20

47、18-22Note:Refers to the rate of average turnover within each age group in isolation.While there are some C-suite executives under the age of 40,this age group has been excluded due to its small sample size.Source:BoardEx,an Altrata company,January 20237.0%8.0%14.0%19.7%40-5051-6061-7071+CEO10.7%14.4

48、%21.4%18.5%CFO40-5051-6061-7071+21.9%25.5%29.4%33.3%COO40-5051-6061-7071+Turnover by age groupThe route to appointment appears to make little difference.Whether these senior executives were appointed internally or recruited externally seems to have very little effect on the turnover rate across each

49、 role(between 2018 and 2022).Workplace culture,company management and structure,the wider economy and individuals own personal circumstances all have an impact on the length of time C-suite executives stay in their jobs.However,there are other influencing factors.Here we focus on age,gender and sect

50、or to understand how they affect the rate of turnover in the C-suite.Annual turnover is low among CEOs and CFOs in their forties,but among COOs the rate remains above 20%.Predictably,turnover is higher among older C-suite executives.Age has an influence on the likelihood of turnover,with CEO,CFO and

51、 COO exits significantly higher in the 60+age bracket.While some will move on to other C-suite roles,many of these individuals will be retiring or choosing to explore other opportunities,such as taking up non-executive directorships.Altrata|2023 Spotlight:C-Suite Turnover in the US|8 Turnover in the

52、 C-suiteWomen have shorter tenuresFortune 1000 median tenure(years)by role 2018-22Note:Refers to those who departed their roles during the period 2018-22.Source:BoardEx,an Altrata company,January 2023MenWomen3.43.0CFO3.23.0CHRO2.82.2CMO2.11.9COO3.73.4CEOTenure by genderA number of factors are likely

53、 to be at play.McKinseys Women in the Workplace 2022 found that while female leaders in North America are just as ambitious as men,many face headwinds that make it harder for them to advance in some organizations.So ambition could be driving women leaders to move on to 14 Women in the Workplace 2022

54、,McKinsey&Company.15 Experiences of Women Leaders,Workplace EDI.Over 2018-22,female executives,particularly CMOs,stayed in their roles for less time than their male counterparts.Female executives have a shorter tenure in every position.While gender made only a negligible difference to the rate of tu

55、rnover between 2018 and 2022,the influence of gender becomes clear in relation to median tenure.Tenure in the five C-suite roles of focus does not,on average,extend very far beyond the three-year mark,with COOs staying in post for closer to two years on average.Yet across each role,women stay for le

56、ss time than their male counterparts,particularly in CMO panies where they feel more welcome and can exert more influence14.The well-researched“glass cliff”phenomenon where women are more likely to be appointed to high-risk leadership positions when firms are struggling or in times of general econom

57、ic crisis or restructuring15 may also be at play.Altrata|2023 Spotlight:C-Suite Turnover in the US|9 Turnover in the C-suiteCEOs and CFOs in health and technology among those with the highest turnoverFortune 1000 CEO and CFO turnover by sector Major sectors by highest and lowest average annual turno

58、ver 2018-22(Among sectors representing more than 3.5%of companies in the Fortune 1000)Note:Technology includes software and hardware;financial services includes banks,specialty finance and insurance.Only major sectors included due to sample size limitations.Source:BoardEx,an Altrata company,January

59、2023Leisure and hotelsHealthTechnology16.0%15.0%13.4%Highest turnover TransportGeneral retailersHealth18.5%18.4%18.2%TransportEngineering and machineryFinancial services11.0%9.9%9.5%Lowest turnoverBusiness servicesConstruction and building materialsElectronic and electrical equipment11.6%10.8%10.8%C

60、FOCEOSector focusTechnology is among the top three major sectors for highest CEO turnover,with an average annual rate of 13.4%from 2018 to 2022.This high turnover reflects the sectors 16 Johnston C.“What is the transportation sector?”The Balance,November 30,202117“Engineering and construction in a p

61、ost-Covid world:weathering the storm.”PwC.Sectors particularly vulnerable to endogenous shock and disruption experienced a high turnover during 2018-22.Among the major sectors of the Fortune 1000,health had one of the highest turnovers of CEOs and CFOs(15%and 18%annually over the past five years res

62、pectively).This likely reflects the increased pressure on this sector during the pandemic as leaders attempted to cope with unprecedented conditions while,at the same time,corporate dealmaking often leading to a replacement at the top.Service and managerial sectors,along with booming manufacturing a

63、reas,such as electronics,remained stable with low C-suite turnover.Meanwhile,recession-vulnerable service industries and retail featured high up,unsurprisingly.dynamism as digitalization has grown,fuelling M&A activity and subsequent corporate restructures.Incumbent CEOs may be too closely linked to

64、 the past as new technologies open up unexplored avenues of growth and yet,at the same,new opportunities may pull tech CEOs away from their current roles.Transport tops the turnover list for CFOs but is one of the bottom three sectors in relation to CEO moves.While initially surprising,this follows

65、a logical pattern.Companies in this established sector,which is subject to strong government and union influences,will be keen to keep the steady hand of a“known quantity”on the tiller in a time of crisis.However,transports financial performance is tied strongly to the economic cycle16 and has been

66、subject to huge pandemic-related disruption,including labor shortages and spiraling fuel prices,putting CFOs under pressure from the bottom line17.Altrata|2023 Spotlight:C-Suite Turnover in the US|10 Turnover in the C-suiteThe incoming class of 2022(Comparative)youth comes to the foreAge upon appoin

67、tment by role among Fortune 1000 companies(years)Source:BoardEx,an Altrata company,January 202360.357.457.754.256.653.756.252.255.751.0200212022CFOCOOCMOCHROCEOAge upon appointmentWhat does the latest intake of corporate leaders look like?Here we examine the trends affecting the newest en

68、trants to the C-suite in 2022 and consider how senior executive recruitment may develop.Remarkably,the average age at which key C-suite executives are appointed has fallen by nearly four years since 2018.C-suite executives are consistently being hired at a younger age.Since 2018,there has been a gra

69、dual trend towards more youthful corporate leadership.With most senior executives aged in their 50s and early 60s,it is clear that experience and accumulated relationship capital are valued as paramount.However,there is growing recognition that,in an unpredictable,even unprecedentedly volatile busin

70、ess environment,new perspectives and radical ideas can be highly valuable.CEOs are still,on average,the oldest incoming C-suite executives,with new CFOs and CMOs being noticeably younger.Altrata|2023 Spotlight:C-Suite Turnover in the US|11 Female appointees are on the rise but not,typically,for the

71、more influential C-suite rolesProportion of women among new appointees by role and year in Fortune 1000 companies(%)Source:BoardEx,an Altrata company,January 2023CMOCHRO819202122CEO.26.58.59.211.8COO.811.112.820.29.748.753.354.362.859.663.965.668.571.272.413.812.815.

72、522.417.9CFO1819202122GenderMore women are being hired across all the C-suite roles(apart from the COO).A growing proportion of incoming hires are women.However,there is a striking contrast between role types.Since 2018,women landed less than a fifth of the positions that carry most influence on the

73、 strategic(CEO,CFO)and operational(COO)aspects of businesses.The more traditionally female-dominated CMO and CHRO roles which,while still influential,have more limited remits continue to see rising female representation,on the whole.The low proportion of incoming female hires to the CEO,CFO and COO

74、roles is due,in part,to a lack of women across the wider C-suite and leadership team.Among Fortune 1000 companies,women accounted for 27.6%of such leadership positions in 2022,far greater than previously but still putting them very much in the minority in this talent pool of potential CEOs,CFOs and

75、COOs.While women now make up approximately half of the college-educated workforce,there is an issue around the number of suitably qualified female executives further down the promotional ladder.Companies are coming under public and stakeholder pressure to rectify this gender imbalance but,while prog

76、ress is being made,it is gradual at best.Women still account for less than a fifth of all new CEO,CFO and COO appointments.Altrata|2023 Spotlight:C-Suite Turnover in the US|12 The incoming class of 2022MethodologyThis report analyses the roles of the CEO,CFO,COO,CMO and CHRO at Fortune 1000 companie

77、s.This is a list of the 1000 largest companies by revenue that are either US incorporated or authorized to conduct business in the US and for which data is publicly available,published annually by Fortune magazine.Individuals who were in these roles during the period 2018-22 were included in the stu

78、dy.We take turnover to be the proportion of employees that leave an organization during a set period,calculated annually.For this report,we include anyone who has left their role,regardless of circumstance be it planned,forced or due to restructuring following a merger or acquisition(M&A)or whether

79、they have stayed with or left the company.This report leverages BoardExs unique and proprietary Global Leadership Database,which covers board and non-board members,C-suite executives,senior leaders and professional advisers.The database contains more than 2 million profiles of public,private and not

80、-for-profit organizations and the 1.6 million people who work for them.All BoardEx data is collected from credible,published sources and cannot be edited by users.Our data is powered by a team of skilled analysts,who research,verify and maintain these profiles.Data details include current and histor

81、ical roles(with start and end dates)for board positions,employment and education.MethodologyAltrata|2023 Spotlight:C-Suite Turnover in the US|13 About AltrataAltrata is a data powerhouse,built to deliver more value to our clients.We are the global leader in data-driven people intelligence on the wea

82、lthy and influential.We work at scale with businesses and nonprofits across the world from a variety of industries.We help our clients connect with confidence to the people who have the greatest impact on their business.Our products give our clients all the information they need on everyone they nee

83、d to know.Our data is actionable,accurate,and comprehensive.And our global team of more than 400 researchers is committed to maintaining millions of profiles and changing data points,so our clients can effectively engage their target audience and make meaningful,lasting connections.Altrata is a regi

84、stered trademark of Delinian Limited and its affiliated companies,which comprises five dynamic offerings:BoardEx,Boardroom Insiders,RelSci,WealthEngine and Wealth-X.About BoardExBoardEx is the leading provider of executive intelligence and relationship mapping solutions,working with premier organiza

85、tions across the academic,corporate,executive search,private equity,legal,and financial and professional services industries.Since 1999,organizations have trusted BoardEx to identify,qualify and map connection paths to 2 million organizations and the 1.6 million people who lead them,to enhance business development strategy,talent management and alumni relations efforts,as well as conduct data-driven research and analysis.Altrata|2023 Spotlight:C-Suite Turnover in the US|14 To obtain further information or to request a demo,please contact us at: