Chief executives in UK do not last long

The median tenure for chief executives (CEOs) across industries around the globe fell to just 2.75 years at the end of December 2001, according to a survey conducted by DBM, the global human resources consultancy.

The UK showed one of the lowest average lengths of service, with 62% of CEOs having less than three years in the job, as opposed to 50% of CEOs overall elsewhere.

The last study a year before revealed almost half of CEO departures resulted from M&A activity. But since then the figure has fallen to a quarter, as M&A activity has declined.

Retirement and resignation were equally important factors in departures.

Across Europe, France demonstrated a median term of 4-5 years for CEOs, while in Germany it was slightly less, at 3-4 years.

Ranked by industry, the finance, insurance and real estate sectors showed just 11% of CEOs in office for 10 or more years.

The survey showed that 86% of company heads are chosen from within the organisation. On average a CEO will have spent over 20 years with a company before reaching the top spot, even if he or she does not last long within it.

Rapid turnover at the top will have a significant effect on the careers of senior executives, as those being groomed for these jobs will expect a short stint and a diminished likelihood they will be able to institute meaningful changes during their brief stay at the top, said DBM.

DBM's survey,' Turnover at the Top: Research Highlights from a global study', polled 481 public and private organisations across the globe with annual revenues of $10bn and more.