"We are delighted to welcome our new CEO . . . "
The turnover of CEOs has increased significantly, says an interesting report from PwC's consulting arm, presenting 19 years of data and trends on the 2500 largest global public companies. The global energy industry, as an example, saw a 19.7% change; that's almost 1 in 5 of all CEOs. The reasons may be varied - M&A activity, forced or planned succession - but with statistics like that, CEOs are well advised to take care when moving company. Before making the decision to move, due diligence has never been more important. Thorough discussions with Chair and Board members will be a natural part of the recruitment process but this may not be enough to cover the ground. CEOs should gather as much additional independent information and intelligence as they can on the company, its leadership, markets and competition, by creatively and confidentially tapping into their own networks. Financial analysts and the investor community can give a solid market perspective; as well as former executives of the business who will understand the dynamics of the company, its competition and its history. Top headhunters active in the sector can provide a perspective on the quality and history of the board and management and may also make further connections for the CEO. The advice then, is for CEOs to make full use of their networks, creatively and confidentially, to fully inform any decision to move, thus mitigating potential career risk.