Research: more companies hire CEO-s from outside their firm
Research by Crist/Kolder Associates reveals that more and more companies in US don’t hire CEO-s from their own firm.
Crist/Kolder interviewed 669 companies from January to July. Out of 42 new CEO-s 31 was a company employee moving up the career ladder, yet when the firm began tracking the data back in 1995, only fifth of every new CEO was hired from outside the company.
At the time Crist/Kolder referred that hiring CEOs from outside their circle mirrored a stronger economy. New leaders have a fresh set of eyes that see things differently, companies are more adapt to these changes when economy’s on its way up.
One of the most famous external recruitments was Marissa Mayer’s departure from Google to Yahoo. Based on current and historical trends, these external recruits are projected to comprise a record-high 27.9% of all new CEOs by the end of the year, according to the study. Research also found that the amount of female CEOs has more than tripled since 2000.
Another unexpected fact surfaces the report: most CEOs don’t hold a master’s degree, only 40,1 percent of holds a business related MBA degree, even out of leaders of financial companies a low 55% hold a master’s degree.