- CEOs are the Oldest, Longest Tenured, CMOs
Shortest Tenured, Tied for Youngest – - Age Has Increased, Tenure
has Decreased in Recent Years -
Editor’s Note: Infographic can be found here
A new analysis by Korn Ferry (NYSE:KFY) of members of the
C-suite at the top 1,000 U.S. companies by revenue reveals age and
tenure by role and by industry.
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the full release here:
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Age and Tenure in the C-Suite: Korn Ferry
Study Reveals Trends by Title and Industry (Graphic: Business
Wire)
The Korn Ferry study examines the age and tenure of individuals
holding C-suite titles (CEO, CFO, CHRO, CMO, CIO/CTO), and is also
broken down by industry - consumer, energy, financial services,
industrials, healthcare and technology.
When analyzed in the aggregate, the average age for a C-suite
member is 56 and the average tenure is 4.9 years. However, the
numbers vary depending on title and industry.
CEO – Oldest and Longest-Tenured
The average age for a CEO across industries is 59. CEOs are the
oldest on average of any other C-suite role.
The financial services industry has the oldest average CEO age
at 60, and the technology and energy sectors have the youngest CEOs
at an average age of 57.
At an average of 6.9 years, CEO tenure is the longest in the
C-suite. Interestingly, the current tenure is down from an average
of 8.0 years when Korn Ferry conducted the same analysis in
2016.
In terms of industries, CEOs in financial services have the
longest average tenure at 8.4 years (down from 9.7 years in the
2016 analysis), and those in energy and industrial sectors have the
shortest tenure at 6.5 years.
"Our Korn Ferry analysis finds that CEO turnover, especially in
publicly traded companies, has been accelerating at record high
rates during the past 2 years, due to both planned and unplanned
departures. This may explain some decrease in tenure,” said Tierney
Remick, Korn Ferry vice chairman, Board and CEO services. “In terms
of the average age of CEOs, we are also seeing a surge in the
number of first-time public company CEOs coming onboard. This is
creating an environment where the average age of the role is
decreasing. We anticipate this will have some impact on the
composition of both the executive team as well as the Board.”
CFO – Ties for Youngest in the C-suite
The average age for CFOs at the top 1,000 U.S. companies by
revenue is 54, which ties for the youngest role in the C-suite.
There isn’t much variance in the age of CFOs among industries,
with an average age of 54 for all analyzed industries except the
energy industry at an average age of 53.
As for tenure, behind the CEO, the CFO is the longest-tenured
C-suite member at an average of 4.7 years. The longest-tenured CFOs
are in the industrial sector at an average of 5 years, and the
shortest-tenured CFOs are in the technology sector at an average of
4.1 years.
“We’re finding that a contributing factor to the longer tenure
of CFOs are Boards, which are taking the time to create robust
succession management processes to ensure chosen candidates are a
good fit, and therefore stay longer,” said Barry Toren, senior
client partner, Korn Ferry CFO Practice.
CIO – From Youngest in C-Suite in 2016 to Tying for Second
Oldest Today
The average age for CIOs across all industries is 55, which ties
as being the oldest in the C-suite, behind CEOs. That’s four years
older than in 2016, when a Korn Ferry analysis found the average
CIO age was 51. The oldest CIOs are in the healthcare industry at
an average age of 57, and the youngest average CIO age can be found
in the consumer and technology industries at 54.
The average tenure for the CIO is 4.6 years, which closely
aligns with the 2016 figures. CIOs in the energy sector have the
longest average tenure at 5.3 years. The shortest-tenured CIOs are
in the healthcare sector at an average of 3.9 years.
“During the past several years, the average age of CIOs in the
1,000 largest U.S. companies by revenue jumped significantly,” said
Craig Stephenson, senior client partner and managing director of
the Korn Ferry North American Technology Officers Practice. “This
can be attributed in large part to the increased experience needed,
as today’s CIOs are more strategic and central to the success of an
organization. This is based on risk factors, size of budgets and
reliance on the technology function at the enterprise level to
enable business outcomes, data assets and customer engagement.”
CMO – Shortest-Tenured in C-Suite
The average CMO age is 54, which ties for youngest in the
C-suite in this analysis and compares with an average age of 52 in
the 2016 analysis. CMOs in the industrial sector are the oldest
with an average age of 55. The youngest average age of CMOs is 52
in the consumer sector.
The average tenure of a CMO is the lowest of all C-suite titles,
at an average of 3.5 years, down from the 2016 analysis, where the
average tenure was 4.1 years. The longest average CMO tenure is in
the industrial sector at 4.0 years, and technology industry CMOs
have the shortest tenure at 3.0 years.
“Short CMO tenure is a reflection of a lack of understanding of
how powerful this role can really be in terms of driving business
outcomes,” said Caren Fleit, Korn Ferry leader, Global Marketing
Officers Practice. “This often leads to lack of clarity around
tangible deliverables and also to hiring a CMO whose skills and
experiences may not be aligned with business needs.”
CHRO – Among the Oldest
Behind the CEO, the CHRO ties for the oldest C-suite member at
an average age of 55, which is the same as the 2016 analysis. There
is little variance in age among industries, with the consumer
industry having an average age of 54, and the rest of the analyzed
industries having an average CHRO age of 55.
The average tenure for a CHRO across industries is 3.7 years,
which is down from 5.0 years in the 2016 Korn Ferry analysis. The
financial industry has the longest-tenured CHRO average at 4.3
years and the healthcare sector has the youngest-tenured CHRO at 3
years.
“The CHRO is a confidant to the CEO and deals with a lot of
privileged information. Usually when a CEO goes, the new CEO wants
their own person in that role,” said Daniel A. Kaplan senior
partner, Korn Ferry HR Officers Practice. “Boards can work to
increase tenure by enhancing efforts to put in place
talent-oriented CHROs steeped in strategy, business fundamentals
and culture. Lastly, as more private equity funds begin to invest
in HR at their portfolio companies, it’s creating even more
turnover. We expect to see continued churn in the CHRO ranks.”
About the Study
The Korn Ferry analysis of age and tenure of members of the
C-suite (CEO, CFO, CIO/CTO, CMO, CHRO) at the 1,000 largest U.S.
companies by revenue took place in late 2019.
About Korn Ferry
Korn Ferry is a global organizational consulting firm. We work
with clients to design their organizational structures, roles and
responsibilities. We help them hire the right people and advise
them on how to reward, develop and motivate their workforce. And,
we help professionals navigate and advance their careers.
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version on businesswire.com: https://www.businesswire.com/news/home/20200121005146/en/
MEDIA CONTACT Tracy Kurschner 612.309.3957
Tracy.Kurschner@Kornferry.com
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