Business leaders who struggled through the GFC may be in for a rude shock when CEO contracts come up for renewal this year amid a climate of tougher shareholder expectations.
Recruitment company Chandler Macleod Group (CMG) is reporting a 30 per cent increase in businesses seeking expertise during evaluation and selection processes to find the best candidate for the top job.
CMG general manager, David Reynolds, said there is greater pressure for CEOs to deliver now the economy is on an upturn.
"The average tenure of an Australian CEO is around three years but this is largely influenced by changes in major shareholders and economic circumstances so we can expect to see quite a bit of turnover in the next financial year as interested parties place more pressure on organisations to perform," Reynolds said.
"This is clear from the number of businesses contracting us to ensure they have undertaken due dillgence in assessing the capabilities of their current CEOs or potentially sourcing and appointing others more suited to take their business forward."
Reynolds said businesses should take serious steps to plan a year prior to renewing contracts or commencing the hiring process to ensure the right candidate is found. He went on to say that by hiring the right CEO, companies will bounce back quicker after events like the GFC.
"By balancing long term needs with short-term crises, maintaining key talent and focuing on key core business activities, successful CEOs positioned their organisations to bounce back quicker from the downturn and are now reaping the rewards with increased attraction, retention and market share," he said.
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