It’s a short, sharp life at the top

Consider these facts:
? Two thirds of all major companies have replaced their CEO in the past five years;
? Fewer than half current CEOs have held their job for under three years;
? Mergers and acquisitions cause nearly half of all CEO departures;
? 85 percent of CEO replacements are appointed within the corporation.
The pay may be exorbitant, but don’t count on staying in the CEO’s seat too long, that’s the message from world study focusing on CEO tenure, conducted by outplacement specialist DMB. The study, which covers 10 years, 476 global public corporations and 50 industries, reveals that the long-tenured CEO is becoming increasingly rare, and few CEOs can expect to hold their jobs until retirement.
Further it shows that CEOs’ short reigns require them to implement their plans within tighter timeframes, reinforcing the current corporate focus on achieving short-term business results. “Faced with merger-fuelled economy, impatient shareholders and an uncertain future, CEOs can’t help but adopt short-term, high-payoff mindset when it comes to planning and pursuing business goals,” reports Bob Critchley, DBM’s international president.