A sort of report Heidrick and Struggles, an international headhunting company headquartered in Chicago, found that the number of CEO appointments in the first half of 2021 was the highest since 2018.
Compared with previous appointments, CEO appointments in 24 markets indicate that CEOs are more likely to be women, who come from countries/regions outside of the company’s headquarters, have transnational experience and advanced degrees. These trends are good indicators for future CEO appointments in the world after the pandemic.
As of July 5, 2021, the report surveyed 1,095 CEOs of the largest listed companies, including the United States, to study how the pandemic affects CEO succession plans and how expectations differ from previous appointments.
The notable trend is that there are more internal employees, and although the number of female CEOs appointed has increased, the number of women in leadership positions still pales in comparison with men.
Another key finding is that there has been an increase in the number of CEOs appointed in the first half of 2021. These CEOs have previous experience beyond the chief financial officer (CFO) or chief operating officer (COO). The report pointed out that, judging from the trend of last year, the CEO’s hiring experience usually includes CFO or COO, but this seems to change with the appointment of the past six months.
The CEOs appointed during this period also have experience in the roles of chief risk officer, chief strategy officer, and chief technology officer. In particular, the role of department heads accounted for 41% of newly appointed CEOs. The number of appointments of CFO to CEO has dropped significantly.
The CEO now also needs a wide range of experience, not just day-to-day operations. They have become the focus of everyone’s attention, and every decision they make is scrutinized by the world. The report shows that the driving force for new perspectives and cross-company diversification comes from internal pressures and laws regarding diversification and recruitment in the corporate environment.
The CEO of Activision Blizzard, the video game giant affected by the scandal, has pledged to change
Photo: AFP/David McNew
It is not surprising that the substantial growth in 2021 is expected when the epidemic in 2020 brings the global economy to an abrupt halt. Nevertheless, due to the reported six-month hiring surge and the hiring trends seen by the world after the pandemic, it may lay the foundation for the future of global CEO succession.
The combination of Heidrick and Struggles’ research led them to conclude that “leaders who are ready for the future are always good at four abilities: leading through influence, driving execution, creating new ideas, and possessing a mastery mentality.”
