Today Altrata released The Role of the CEO 2023 which examines CEOs of public and private companies across 20 major global markets. This new report is the latest in Altrata’s Executive Leadership Series, leveraging data from BoardEx, Boardroom Insiders and RelSci.
Individuals appointed to the role of CEO are under increasing pressure to successfully navigate changing market conditions, demands for sustainable business practices, cyber security, workplace wellbeing, and much more. The experience and characteristics of today’s CEOs can tell us more about the needs of companies and the priorities of their board.
Key findings from The Role of the CEO 2023 include:
- CEO gender imbalance. Only around 6% of CEO positions at large public companies across 20 major global markets are currently held by women. Private ownership appears to make a difference; large, privately held companies in the US and UK have a greater proportion of female CEOs.
- A lack of diversity among the CEOs of large public companies. Just under 4% of current S&P 500 CEOs are known members of the BoardEx Diversity Network.
- CEOs of larger companies are in their mid to late 50s and they are typically the oldest person in the C-suite.
- 87% of CEOs in the S&P 500 and 79% of FTSE 100 CEOs were appointed internally. External appointments play a bigger role in large, private companies in both the US and UK.
- CEOs of large, public companies tend to have very strong experience in M&A. Around 85% of S&P 500 and FTSE 100 CEOs have overseen an acquisition during their career. In terms of CEOs with IPO experience, those leading S&P and FTSE small cap companies take the lead.
- Nearly a fifth of S&P 500 CEOs spent part of their careers at either GE or Procter & Gamble. Other notable companies where CEO’s previously worked are Dow, HP and Pfizer.
- The corporate backgrounds of FTSE 100 CEOs show significant sectoral diversity. 16% of CEOs spent part of their career at CRH, 11% at British American Tabaco, 11% at Carrefour and 11 % at Shell.
The need for connection
Executive connections to CEOs are crucial in most industries since they, along with members of the board, are final decision makers for strategic or large budget issues. Senior executives’ own professional networks give them a surprisingly high number of connections to CEOs. The report reveals that US private equity executives and partners at consulting firms each have more than 50 direct connections to CEOs and more than 10,000 indirect connections. Investment banking executives have, on average, 47 direct connections to CEOs and more than 8,000 indirect connections.
The strategic priorities of today’s CEOs
The Role of the CEO 2023 also examines some of the leading strategic priorities of CEOs of Fortune 500 companies. Growth strategies dominate with a focus on innovation and acquisitions taking the top spots. Volatile business conditions account for the other top priorities: inflation and supply chain disruption.
Access the complete findings
To dig deeper into the insights highlighted above and to learn more about the evolving role of the CEO download the full report here.
This study was powered by three of Altrata’s unique data products. BoardEx includes the professional profiles of more than 1.6 million executives across the globe including their diversity details and work experience. RelSci includes insight into the size and influence of the networks of CEOs and other executives. Boardroom Insiders details out the strategic priorities and interests of CEOs across the US.
This press release was originally posted on PR Newswire on January 31, 2023.