Heidrick & Struggles'
Route to the Top explores path to the corner office
LONDON, April 20, 2017 /PRNewswire/ -- The CEOs of
the UK's largest companies are both younger and much more likely to
be international than their counterparts in the United States, France and Germany, according to the annual Route to
the Top study from Heidrick & Struggles (NASDAQ: HSII), a
premier provider of executive search, leadership consulting and
culture shaping worldwide.
According to the study, FTSE 100 CEOs are on average five years
younger than their counterparts in the U.S., with more than half
(53 percent) under 55 years old compared to 17 percent in the U.S.
The large age gap is also highlighted by the fact that four out of
10 (42 percent) of U.S. CEOs are age 60 or older, compared to just
13 percent in the UK. In Germany,
42 percent of CEOs are under age 55 and in France the figure is 38 percent.
For the complete 2017 Heidrick & Struggles Route to the
Top report, visit
http://www.heidrick.com/Knowledge-Center/Publication/Route-to-the-top-2017.
UK CEOs were also considerably younger when they were first
appointed, with more than half (54 percent) of FTSE 100 bosses
being promoted to the top job under the age of 50. In contrast,
just a quarter (25 percent) of U.S. CEOs were under 50 when
appointed and the proportion of U.S. CEOs over age 55 when first
appointed (36 percent) was also more than double that of the UK (16
percent).
"The average tenure for a CEO in the UK is around six years,
which indicates that a significant proportion of FTSE CEOs will not
continue in their current roles much beyond the age of 60. This
means there will be exciting career opportunities for young and
up-and-coming CEOs, but also that their careers as CEOs are likely
to end earlier," said Luis Urbano,
Heidrick & Struggles' Managing Partner, Europe and Africa. "Likewise, while companies are able to
tap into younger, dynamic talent, there is much to be gained from
the grey hair of a seasoned CEO. It also poses the question as to
what these older CEOs go on to do and whether or not they will be
able to find roles that are intellectually stimulating and take
full advantage of their particular skills and expertise."
The study also confirmed that FTSE 100 companies are far more
likely than those in the U.S., France and Germany to be led by a non-UK national. Four
out of 10 (40 percent) of FTSE 100 CEOs are from outside the UK
compared to just 10 percent in France, 13 percent in the U.S. and 17 percent
in Germany.
Other key findings from the study include:
- CEOs with MBAs on the decline. Only 35 percent of U.S.
CEOs in the study hold an MBA degree, down from 42 percent in 2015
and 49 percent five years previously. In France, 26 percent of CEOs have an MBA, down
from 37 percent five years previously. In Germany, where advanced technical degrees are
more common, CEOs with MBAs have declined to 11 percent from 16
percent five years previously. In the UK, 30 percent of CEOs have
MBAs - unchanged from five years previously.
- Women CEOs remain rare. While the U.S. had the most
female CEOs – 8 percent of the companies studied – this figure is
down by one percentage point compared to 2015. In the UK, women
account for 6 percent of CEOs, up one percentage point from 2015.
Women CEOs remain significantly rarer in France and Germany at only 2 percent and 1 percent,
respectively, unchanged from 2015.
- Internal promotions are the most common route to the
top. In the U.S., Germany and
the UK, 85 percent, 68 percent and 61 percent of CEOs were promoted
from within. By contrast, only 48 percent of CEOs in France rose to the top from an internal
promotion.
- Financial background comes top in the UK, US and
Germany. A background
in finance is the most common route to the top for CEOs in the
UK (36 percent), U.S. (31 percent) and Germany (26 percent), while engineering is the
leading functional background in France (24 percent).
The Route to the Top study by Heidrick & Struggles
analyses the backgrounds of chief executives at the complete FTSE
100 in the United Kingdom, the
largest 100 companies in the United
States as reported in the Fortune 500, the DAX 30 and MDAX
50 in Germany, and the SBF 120 in
France.
About Heidrick & Struggles:
Heidrick &
Struggles (Nasdaq: HSII) serves the executive talent and leadership
needs of the world's top organizations as a premier provider of
leadership consulting, culture shaping and senior-level executive
search services. Heidrick & Struggles pioneered the profession
of executive search more than 60 years ago. Today, the firm serves
as a trusted advisor, providing integrated leadership solutions and
helping its clients change the world, one leadership team at a
time. www.heidrick.com.
Media Contact:
Chiara
Pierdomenico - Marketing & Communications Manager,
EMEA
+44 20 7075 4236, cpierdomenico@heidrick.com
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