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Zinnov, has released its findings from a study on “Global CEOs”. This study was conducted to profile CEOs and identify key trends in senior leadership across the global 500 R&D spenders .The study clearly indicates an increase in the number of young CEOs across the global 500 R&D spenders.
Young CEOs on the rise, globally
The average age of CEOs who founded companies after 2000 is 36 years, 3 years lesser than CEOs who founded companies before 2000. In fact two of the five youngest G500 CEOs (Facebook and Google) founded their companies in their twenties. The average age of non-founder CEOs in companies founded before and after 2000 was 56 and 52 years respectively. Organizations founded after 2000 clearly show a greater inclination to hire younger CEOs who bring a newer perspective to the business.
There is also a clear distinction between the way digital native and digital immigrant companies appoint their CEOs. The CEOs of digital native companies are on an average 9 years younger than digital immigrant companies. None of the digital native CEOs are over 60 years of age. On the other hand, amongst digital immigrants, the average age of CEOs is 54, and 21 percent of the CEOs are older than 60 years. In fact, no CEO of a digital immigrant company is less than 30 years, while amongst digital natives, 8 percent of the CEOs fall under this age-bracket.
Average age of appointment in sync with average CEO age
Similar to the average age of CEOs, the average age of appointment of CEOs is lower by four years in companies established after 2000 than those established before 2000. The average age of CEOs currently at the helm of G500 companies is between 50 & 60 years.
Companies Face a Dearth of Senior Women Leaders
Only 3 per cent of the Global 500 CEOs are women. However, organizations are taking focused efforts to hire women leaders and this is reflected in the appointment of 10 women CEOs in the last three years.
Internal hiring still preferred over external hiring
G500 companies are increasingly instating internal leaders who understand the organization’s DNA and business and are still able to bring a newer perspective as CEOs. Companies that do hire CEO’s from outside the organization prefer individuals who have a proven track record of running a company or business unit. EMEA based companies have the highest ratio of externally hired CEOs, while Japan based companies have the highest ratio of internally hired CEOs.
Most CEOs have an engineering background
About 45 per cent of global 500 CEOs have an engineering background and close to 62 per cent of the CEOs have a postgraduate degree which includes MBA, PHDs or Masters. North America continues to be the preferred destination for undergraduate and post graduate education of the Global 500 CEOs.
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