The seventh annual Route to the Top 2020 report from
"There has been a shift in CEO selection during the pandemic as companies seek executives
Route to the Top 2020 report: CEOs appointed after the
Following the
- Of the 30 CEOs appointed from
March 11, 2020 , toJune 30, 2020 , 63% had held the CEO role previously, compared to 44% in the cohort appointed fromOctober 2019 toMarch 10, 2020 . - In addition, more companies looked outside their organizations for their next CEO, with external appointments jumping to 57% from just 35%, as they may not have had an experienced internal candidate to take over amid the pandemic.
With companies more focused on past CEO experience, diversity in terms of gender, cross-border experience and cross-industry experience decreased significantly
- Women CEO appointments decreased from 12% in the cohort appointed after
October 2019 to only 3% after the pandemic announcement. - Cross-industry experience decreased from 18% to 13%, while cross-border experience decreased from 39% to 30%.
"As companies prepare to emerge from the pandemic, they need to take an in-depth look at their pipeline of future leaders to ensure they are developing a deep and wide bench of diverse executives, providing the experiences and opportunities required for the top job in a challenging future," said Bonnie Gwin, vice chairman and co-managing Partner of the global CEO & Board of Directors Practice, Heidrick & Struggles. "The pandemic has brought into sharp focus that the most critical skills sought after in CEOs include agility, inclusiveness, and the ability to continually learn and adapt, all of which are essential not only during times of crisis, but also as companies look to innovate and transform themselves."
Route to the Top 2020 report: Snapshot of CEOs (through June 2020)
Three-quarters of all CEOs (75%) have previous C-suite experience
- Forty-five percent have previous CEO experience, 18% have COO experience, and 17% have CFO experience.
- Of the markets analyzed,
Singapore has the highest preference for previous CEO experience (97%), andChina has the lowest (22%);the United States has the highest preference for previous COO experience (48%), andBelgium has the lowest (0%); andAustralia has the highest preference for previous CFO experience (24%) andChina has the lowest (4%).
Gender diversity, and diversity in cross-border and cross-industry experience has declined due to the pandemic
- Women only make up 5% of CEOs globally in this year's report;
Ireland has the highest percentage of female CEOs (15%), andBrazil has the lowest (0%). - Thirty-six percent of CEOs have cross-border experience, and 17% have cross-industry experience.
The average age at appointment to CEO is 50, and the average tenure of CEOs globally is 6.2 years
- Globally, only 22% of CEOs were under the age of 45 when appointed.
- The average current age of CEOs is 56;
the United States has the highest average age of 60, andSweden andIreland have the lowest average age of 53.
About the Route to the Top 2020 report
The Route to the Top 2020 report provides insight into a composite view of the global CEO and looks at some critical differences among the 965 CEOs of the companies listed on the following 20 economy indexes:
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