Chief Executive Magazine: First Time CEO Appointments are on the Rise – Are They Ready?
In an article published in Chief Executive Magazine, Summit president Dan Hawkins offers advice to the growing numbers of first time CEOs
From Fortune 500 companies to private equity–sponsored startups, CEO turnover is on the rise. According to global outplacement firm Challenger, Gray, & Christmas, CEO turnover reached an all-time high in the fourth quarter of 2018, with 129 CEOs leaving their posts in the final month of the year. A number of factors are driving the exodus of venerable and successful CEOs. Baby boomers, the largest demographic of workers in American history, are reaching retirement age, and the current health of the stock market makes cashing out quite an appealing proposition.
With so many experienced CEOs churning into retirement, replacements are being promoted from within, and empty CEO chairs are being filled with first timers routinely. According to consulting firm Spencer Stuart, of the 11 new CEOs of S&P 500 companies who were appointed in the third quarter of 2018, 10 were promoted from within. These CEOs are younger, less experienced and, in many cases, untrained as they make the transition from their operational roles to ones requiring a higher level of enterprise leadership and strategic direction.
Read the rest of this article where it originally appears on the Chief Executive Magazine website.