Although the rate of CEO turnover in Australia declined in the past year, local CEOs are more likely to leave their jobs because of poor performance than their global counterparts, according to a study by international management consulting firm Booz Allen Hamilton and the Business Council of Australia.
The study found that overall CEO turnover in Australia – for reasons of performance, merger activity or normal transition – is still significantly higher than the global average in 2003. In 2003, 14.2% of Australian ASX 200 companies recorded a turnover event, compared to 9.5% for the global average.
It found average CEO tenure in Australia remains lower than the global average, while the trend for Boards to appoint replacement CEOs from outside the company is accelerating. ‘Outsiders’ last year made up 57% of new CEO appointments in Australia compared to 40% in 2002.
Read the full news release here or download the paper here.