The executive market is undergoing a major transformation. The turnover of executives seems to be accelerating, not just due to a mechanical increase in departures but because of a profound shift in leadership trajectories. Several factors explain this evolution, combining economic pressures, organizational transformations, and generational transitions.
Shorter Terms Under Pressure
Companies expect quick results. A CEO or executive must demonstrate their impact in less time than before. In the SBF120, the average tenure of a CEO has decreased from 7 years to approximately 4-5 years. This acceleration is driven by several dynamics:
- Intensified performance expectations: Shareholders and boards impose short-term goals, making job security more uncertain.
- Accelerated transformations: AI, digitalization, ESG issues… Companies need leaders who can quickly adapt to these new challenges.
- Changing aspirations of executives: Increasingly, executives prefer more varied career paths, gaining experience in consulting, transition management, or entrepreneurship.
- Generational transition: Many family-owned businesses and historical groups are renewing their leadership teams to incorporate profiles aligned with new growth and innovation strategies.
What Are the Implications for Companies?
To avoid leadership crises and ensure strategic continuity, companies must rethink their talent management:
- Anticipate succession: Establish solid succession plans and identify future leaders in advance.
- Invest in agile and evolving leaders: Support them with tailored coaching and development experiences.
- Renew the management committee dynamics: Better mobilize key stakeholders and foster collective intelligence.
- Train tomorrow’s leaders: Prepare them to navigate an uncertain and fast-paced environment while mastering their communication and leadership posture.
