What's the makeup of Fortune500 C-Suites?

 

 

For this week’s newsletter, I've done the reading and summarizing, so you can save your most precious asset, namely your time:

Key insights:

1. The makeup of C-suite executives within the Fortune 500 has shown remarkable stability over the past year, despite facing challenges such as a tumultuous macroeconomic landscape, social & political upheaval, & ongoing repercussions from the COVID-19 pandemic

2. The average tenure is up from 4.3 years in 2022 to 4.6 years in 2023

3. Women make up 40% of the c-suite roles, compared with 38% in 2022

4. The % of executives from historically under-represented groups stays flat at only 16%

5. 59% of executives were appointed internally, up from 58% in 2022

6. Diversity among C-suite executives remains a challenge, particularly in roles such as CEOs, COOs, & CFOs, where women & individuals from historically marginalized ethnic and racial groups are underrepresented.

Despite this disparity, a noteworthy trend emerges in newly established C-suite positions like chief inclusion and diversity officers and chief sustainability officers, where a majority of leaders hail from these underrepresented backgrounds.

Conversely, greater racial, ethnic, & gender diversity is observed among top leaders in HR, communications, & marketing roles

7. Recruitment & retention trends within the Fortune 500 reveal that CEOs tend to have significantly longer tenures compared to the overall C-suite average, with an average tenure that is 52% longer. On average, incumbent CEOs have held their positions for 7 years, contrasting with the combined average tenure of 4.6 years across the C-suite.

COOs typically experience the shortest average tenures, as this role often serves as a developmental stepping stone for individuals aspiring to become CEOs.

Additionally, newly established positions like chief inclusion and diversity officers & chief sustainability officers exhibit shorter average tenures, thus limiting their opportunity for longer tenures at present

8. Slightly over 40% of C-suite leaders were recruited externally for their positions, with COOs being the least likely to be sourced from outside hires (20%), closely followed by CEOs (23%).

Conversely, CIOs emerge as the most common external hires, with 57% appointed from outside the organization.

Notably, more than 1/3 of externally appointed CIOs (34%) transitioning across industries

Did you know that targeted coaching is one of the most effective ways of supporting C-Suite transitions? 

But don't take my word for it, take it from a Chief Sales Officer who was a recent client of mine: