Even during the crippling global pandemic, while facing unprecedented turmoil and massive uncertainty, many companies have made major changes in their senior leadership ranks. Among the marquee brands that have named new CEOs in the past year are Amazon, Disney, Ford, Harley Davidson, HKEX, Honda, IBM, Intel, LinkedIn, Mastercard, Merck, MGM, Patagonia, UnitedHealth Group, Volkswagen, and Walgreens. The Gates Foundation, one of the largest charitable organizations in the world, welcomed a new leader as well.
Although 2020 saw less turnover at the top than 2019 overall, according to CEO tracking specialists, hundreds of exits and onboardings occurred at prominent global companies. As always, the organizations involved were under tremendous pressure—from shareholders, employees, customers, and others—to make the right choices.
Unfortunately, many choose poorly. Botched CEO appointments, Thomas Keil and Marianna Zangrillo observe in the Winter 2020 issue of MIT Sloan Management Review, cost companies tens of billions of dollars annually in market value. Short tenures are common, even among “seasoned executives with previously unblemished track records,” they note, observing that research they’ve been conducting indicates that “more than 15% of all CEOs depart within two years.”
“The best-laid plans—especially succession plans—often fall apart when they encounter reality. What is surprising,” they add, “is how shocked and appalled boards are when their CEO choices fail—sometimes repeatedly.” What accounts for the failures in these CEO choices? READ MORE
By Allison Bailey and Grant Freeland
Author believes that a more precise understanding of what exactly gives someone good judgment may make it possible for people to learn and improve on it. He interviewed CEOs at a range of companies, along with leaders in various professions. As a result, he has identified six key elements that collectively constitute good judgment: learning, trust, experience, detachment, options, and delivery.
Hiring has exceeded pre-pandemic levels in many markets and the shortage of skilled executives has put pressure in the increasing competition for top talents. If you have specialized and high-demand skills, for example on ESG, sustainability or bio-research, and a solid record of experience, you are well positioned to negotiate your salary.
We’re kickstarting 2023 with exciting news for Borderless as we welcome Agnieszka Ogonowska as a Partner. Agnieszka, who joined Borderless six years ago, has 17 years of experience in executive search working with senior leaders across the Life Sciences, Chemical Value Chain and Food & Beverages industries.