CEO & Board Practice Route to the Top 2020 How 2020 has—and hasn’t— changed what companies are looking for in CEOs Thanks to the following Heidrick & Struggles colleagues for their contributions to this report:
Stafford Bagot Sylvain Dhenin Jenni Hibbert Tobias Petri Oliver Schiltz Brussels Brussels London Copenhagen Zurich
Niccolo Calabresi Guy Farrow David Hui Nick Pinner Nicolas von Rosty Milan Sydney Hong Kong Sydney Munich
Marie-Hélène Bonnie Gwin Catherine Lepard Jeffrey Sanders Linda Zhang De Coster New York Chicago New York Shanghai Brussels Heidrick & Struggles
Welcome to 4 Introduction BoardRoute toMonitor the Top Europe2020 2020
We combined data analysis and interviews to assemble a profile of what it takes to become Right now: Hallmarks of the pandemic CEO a global CEO today, the skills and experience 5 required, and how that picture is changing in the broader context of transformative economic and business shifts. Our analysis provides insight into a composite view of the global CEO and looks at some critical differences among the 965 CEOs of the In the longer term, companies listed on the following 20 economy many routes to the top indexes: Australia, ASX 100; Belgium, BEL 20; 8 Brazil, BOVESPA; China, SSE (top 100); Denmark, OMX Copenhagen 20; Finland, OMX Helsinki 25; France, SBF 120; Germany, DAX and MDAX; Hong Kong, Hang Seng; Ireland, ISEQ 20; Italy, FTSE MIB; Netherlands, AEX; Norway, OBX; Portugal, PSI-20; Singapore, STI 30; Spain, IBEX 35; Sweden, OMX The current Stockholm 30; Switzerland, SMI Expanded; United CEO perspective Kingdom, FTSE 100; United States, Fortune 100. 11 The analysis has been conducted with data valid as of June 30, 2020. To complement our data analysis, we interviewed CEOs in three regions representing a mix of industry sectors. Gaining essential 15 diversity: A wider range of backgrounds, skills, and experience
18 The upshot
3 Route to the Top 2020
Introduction
In Heidrick & Struggles’ Route to the Top 2020, to see how boards’ criteria for selecting Our findings indicate that we analyzed the backgrounds of CEOs of their top leaders changed as a result companies have returned to 965 of the largest listed companies in 20 of the crisis. Our findings indicate that markets around the world to understand companies have returned to the more the more traditional comfort the skills and experiences that shaped traditional comfort zone of candidates, zone of candidates, appointing their path to the top role. We also spoke appointing more executives with prior CEO more executives with prior CEO with 10 CEOs from different regions and experience and a successful leadership experience and a successful track record; deprioritizing, for the sectors to explore how they see their moment, advanced education and racial leadership track record. role evolving, both in the aftermath of and ethnic, gender, or industry diversity; the COVID-19 pandemic and beyond. as well as, to a larger extent, choosing It’s undeniable that the pandemic has external appointments over internal ones. quickly proven to be a once-in-a-century In addition, this year’s report digs deeper event, prompting the redefinition of into two areas: career paths and diversity everything from how and where we across sectors. Taking a closer look at work to how we raise our children the trajectories of the careers of the to how we interact with one another CEOs in our study—specifically their on a daily basis. It has profoundly previous two roles—we found 117 unique altered the way companies see their paths to the top role—for example, purpose, their workforce, and even their being a divisional vice president, then organizational capacity for change. becoming a COO, and then the CEO, or a regional leader, then the CFO, and We therefore looked closely at the CEOs then the CEO. As far as diversity across who were appointed after March 11 of this sectors goes, in terms of both gender year, when the World Health Organization and the full range of career experience, (WHO) declared COVID-19 a global pandemic, we were able to explore how industry and compared them to the CEOs appointed sectors benefit from fresh perspectives from January 2019 to March 10, 2020, brought by diversity of thought.
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Right now: Hallmarks of the pandemic CEO
In the analysis of the four months of Fewer CEO appointments after the pandemic post-pandemic-declaration data, we found several notable changes. First, the announcement compared to the same period in 2019 number of CEOs appointed between March 2019 2020 11, 2020, and June 30, 2020, dropped in all but one of the largest four economies analyzed in our study compared to the 8 8 same period in 2019. Companies in China, Germany, and the United States 7 7 7 all appointed significantly fewer CEOs this year; the United Kingdom added one additional appointment this year. 6
5
4 4
3 3 The number of CEOs appointed between March 11, 2020, and 2 2 2 2 June 30, 2020, dropped in all but one of the largest four economies 1 analyzed in our study compared to the same period in 2019. 0 China Germany United Kingdom United States
5 Route to the Top 2020
Altogether, there were 31 CEOs appointed Less diversity, by a variety of measures External appointments rise after the official announcement of a global pandemic, and we found that The more recent upward trend of Companies seeking an experienced CEO their backgrounds differ significantly appointing women as CEOs, which to take the helm quickly in a global crisis from their very recent counterparts seemed to be bolstered to 12% during may not have had an internal option, and on a number of key fronts. the five months before the pandemic so it makes sense that more companies announcement, dwindled to 6% in the four than usual would turn outward for months after March 11. Cross-border and their next CEO. External appointments cross-industry experience—important jumped to 57% in the months following elements of diversity for companies the WHO’s pandemic announcement, seeking innovation and an edge in the up from just 35% in the appointments global economy—have also declined. from October 2019 to March 10, 2020.
Previous CEO experience A shorter time to appointment reemerges as a priority for internal candidates
More companies are relying on traditional It’s also notable that some companies criteria for CEO selection. They are appear to have sped up their timeline focused on prior C-suite experience, for internal appointments: time spent in particularly CEO experience: 63% of CEOs a company before being appointed CEO appointed after March 11 have held the fell by almost a third, to 10.3 years, from CEO role before, compared to 44% in the 15.6 years only a few months earlier. group appointed after October 2019 and before March 11. Though understandable in a crisis, this preference is likely related to the drop in gender diversity, since there are far fewer women who were formerly CEOs to choose from.
We have seen similar patterns before, most recently following the 2008 global financial crisis when companies fell back on proven CEO track records in selecting new CEOs, but this is by far the most pronounced shift we have seen in this direction. It’s understandable that companies would seek an experienced hand right now, but with that as the primary criterion, broader diversity—gender, industry, nationality, and others—has clearly taken a hit. And given the fall in the number of appointments since the pandemic, many boards are likely waiting to define the right profile for their company’s next CEO.
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CEOs appointed after the COVID-19 pandemic declaration
New CEOs 2019 Appointed Appointed January 2019–September 2019 October 2019–March 10, 2020 March 11, 2020–June 30, 2020 n = 81 n = 66 n = 31
Post-COVID-19 CEOs are likely to be less diverse… Gender Non-nationals Cross-border experience Cross-industry experience
9% 20% 44% 22%
12% 29% 39% 18%
6% 30% 30% 13%
…have more C-suite experience, particularly as CEOs...
Previous C-suite overall CEO CFO COO Other C-suite
78% 42% 22% 19% 6% 68% 44% 20% 18% 12% 77% 63% 29% 27% 3%
…and are less likely to The post-pandemic cohort includes more external appointments than the pre-pandemic one have advanced degrees Internal appointments Advanced degrees 73% 56% 37%
64% 71% 50%
MBA External appointments
26% 35% 57% 27% 23% 23%
7 Route to the Top 2020
In the longer term, many routes to the top
In this seventh year of looking at the by COO, at 15%, and by other C-suite backgrounds of CEOs at the largest and leadership roles or regional leaders. companies in key markets around the Looking closer at internal appointments, world, we also took a more expansive we found that 26% of then-future CEOs look at the career paths of the majority of were at a different company two roles those CEOs. We found that the aggregate ago. This highlights the fact that many figures hide a vast array of career stories. companies actively hire senior executives Indeed, looking at the previous two with CEO potential, perhaps when they roles CEOs held before their current see their internal pipelines faltering. position, for both internal and external To avoid losing people with obvious appointments, we found a total of 117 leadership potential, companies may unique paths to the top position. need to extend their CEO succession The top four most common paths planning strategies to include candidates accounted for only 20% of the total, and further down in their organization. the remaining 80% of CEOs analyzed—776 CEOs appointed externally have, in total—had taken 113 other paths in their unsurprisingly, far more often come previous two roles before becoming a CEO. from another CEO role—39% of them did so. Former group division CEOs or One of the reasons behind the many The top four most common variations of paths is that there are leaders came in next, at 17%. Notably, some significant differences between the CFO position, a frequent step on the paths accounted for only 20% internal and external appointments, which trajectory to the top role, ranks 10th, of the total, and the remaining represent 65% and 30%, respectively, which adds nuance to our understanding 80% of CEOs analyzed—776 1 of the total appointments in our study. of the CFO-to-CEO path. The myriad in total—had taken 113 other For internally appointed CEOs, the most routes to the top should encourage common previous role, at 18%, is the boards to cast a wider net when they paths in their previous two group division CEO or leader, followed set the criteria for their next CEOs. roles before becoming a CEO.
1 The other 5% are people who founded their company.
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The paths to the top take different trajectories for internal and external appointments (%)
Internal External n = 602 n = 274
Top 5 previous roles Top 5 previous roles
40% 40% 39 39 18 17 15 30% 30% 9 13 8 20% 20% 18 17 15 13 12 10% 10% 9 9 8 5
0% 0%
Group COO Other CFO CEO CEO Group Other Regional Other division leader division leader CEO/leader C-suite/ CEO/leader CEO/leader global functional leader
Top 5 previous roles minus 1 Top 5 previous roles minus 1
40% 40% 39 18 17 32 15 30% 30% 9 13 26 22 8 20% 20%
14 13 11 12 10% 9 10% 8 6
0% 0%
Group Other CEO Other CFO Group CEO Other Regional Regional division leader C-suite/ division leader CEO/leader division CEO/leader global CEO/leader CEO/leader functional leader
9 Route to the Top 2020
Many routes to the top
CEO
CEO Group division COO CEO/leader 170 156 108 101 78 62 61 57 56 26 16 6 Previous role
The top four distinct paths accounted for the paths of nearly 20% of newly appointed 2 4 1 3 CEOs. The remaining 80% of new CEOs analyzed represented a mix of backgrounds in their previous two roles before becoming a CEO.
There are 117 unique paths between previous role minus 1 and previous role that lead to CEO.
Previous role minus 1 16 131 56 35 41 264 18 65 130 80 44 17
CEO Group division CEO/leader
Board member Group division CEO/leader Regional CEO/leader CEO Group division functional leader Regional division CEO/leader CFO Other C-suite/group Regional functional leader/ COO functional leader regional division functional leader General manager/managing Other leader director/deputy CEO
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The current CEO perspective
The many and diverse challenges of Indeed, the pandemic has emphasized The CEOs we interviewed alluded to 2020 are proving a crucible for current the need for the softer skills that are CEOs’ leadership capabilities, and it is the hallmark of modern leadership. walking something of a tightrope, not difficult to understand why more Chris Kempczinski, president and CEO focusing on both immediate experienced executives are in demand. A of McDonald’s, highlighted humility and demands to ensure survival series of 10 interviews we did with global empathy. “One of the necessary parts in the short term and longer- CEOs brought into sharper focus some of of leading through the pandemic has the trends we were seeing in the data and been having a sense of humility,” he said. term demands geared toward provided a more qualitative perspective “Sometimes, people look for CEOs and sustained growth in the future. of how CEOs view their role now. presidents to have all the answers—in this case, no one knows. You need to have “Because of COVID-19, we might see how The CEOs we interviewed alluded to empathy to understand how people are the world is more fragmented as countries walking something of a tightrope, focusing feeling and be able to adjust your style to respond to the pandemic, and there on both immediate demands to ensure the myriad of ways they process and react.” will be more balance needed between survival in the short term and longer- Dr. Johannes Bussmann, CEO of Lufthansa global centralization and agile local term demands geared toward sustained Technik, agreed and noted that this new response,” Liu said. “To be able to think growth in the future. Eamonn Crowley, skill set also brings the CEO closer into the globally and at the same time act more CEO of Permanent TSB Group Holdings, organization: “The role and image of the like a local player will require a change said, “CEOs in financial services need CEO will be largely shaped through their of behavior and mentality, and it will be to be focused as much on behavior and digital communication skills, and CEOs will the key for the success in the future.” culture in their organization as they are have to be proficient in a variety of virtual on the balance sheet. Culture, leadership Jean-Christophe Tellier, CEO of and face-to-face types of interactions. behavior, and the ESG agenda are key biopharmaceutical company UCB, also Their constant presence in their employees’ areas that have grown in importance for sees a longer-term implication: “COVID-19 lives creates a level of personal closeness CEOs, particularly in banking. I consider has also created, for all stakeholders, an with the CEO not seen before.” myself the chief culture officer as well as increased ability to talk to each other. The the CEO, and it is my job to ensure that Beyond connection, president of Cargill solution comes with dialogue; instead we are fostering a positive, customer- China Jerry Liu sees the pandemic as a of trying to convince the other, it’s really focused culture that encourages potential game changer that will drive a about working together to try to find a and rewards the right behaviors.” more local approach to decision making. solution that is good for everyone.”
11 Route to the Top 2020
When looking longer term, the intertwined individual level and collectively as an Despite the general consensus on these issues of purpose and sustainability stood organization,” he said. And CEOs see the core priorities, the leaders we spoke with out when CEOs talked about how their role value an authentic purpose can have in had some different views on the skills will be shaped in the next three to five mobilizing organizations and linking it to needed to make a successful CEO now years. Juan Jose Gonzalez, CEO of medical performance, as Gonzalez pointed out. “A and in the future, based on the different technology company Ambu, said: “CEOs clear purpose can be very powerful; it contexts and experience each of them have to manage a more complex set of has an unparalleled ability of engaging an brings to their role. “It depends on stakeholders, shifting the conversation organization, which leads to a better personality, the type and maturity of their toward areas like ESGs, diversity, and financial performance. But it only works organization, and the challenges they are government and community relations. if your decisions and the way you run a facing,” said Cargill China’s Liu. “The There is a fine balance to maintain in the company are fully aligned to your purpose.” biggest legacy or valuable skills will be agility, learning skills, and the ability to regular day-to-day CEO job, and that Sustainability-related issues remain adapt in order to lead their organizations balance is not an easy one.” More than ever, critically important to a wide range of through change.” Said Boutin, “I admit CEOs need to ensure their organizations are audiences—communities, shareholders, that every week I could almost write a rooted in purpose, which provides stability and investors—and are not going away. chapter about what I learned that week. and motivates people amid societal and James Riley, group chief executive of It’s just amazing. It goes so quickly, and it economic uncertainty. Tellier thinks that Mandarin Oriental, sees sustainability requires a lot of energy and resilience at “the alignment of purpose and values and as central to the business agenda and times, but this thirst to confront complex the solidity of our value propositions said that “the pandemic should simply problems, new problems, and to approach provide the confidence that the world can further reinforce that and should in no them each time with this same humility in completely change, and, in the long term, way be taken as an excuse to back away the face of difficulty, [even] subjects we will still be successful.” from it. Sustainability is something that we’ve never seen before, that’s what needs to be led from the top and not Having a clear purpose helped with some makes this job so wonderful.” difficult decisions at Direct Line Group, delegated to a department.” He as Penny James, its CEO, explained: continued, “I take the view that no Chris Kempczinski also thinks of “People do need a reason and something meeting should take place without versatility as a necessary leadership skill: to rally around, and for us, it’s ‘insurance sustainability being on the agenda, and “At the moment, companies need versatile as a force for good.’ We are very people that doesn’t refer to token elements such and confident CEOs who have the ability centric, and this has been an as turning the lights off, but factoring in to successfully navigate a lot of different extraordinary guide through the past few how our decisions and actions have an situations. In this environment, a leader’s months. This vision made some impact on the environment.” Guillaume ability to squeeze out every ounce of expensive decisions easy to make. Boutin, the CEO of Proximus, thinks the productivity is not very useful, as that’s a Purpose makes it quite natural to do the way CEOs deliver on sustainability will steady-state skill set.” increasingly factor into the way their right thing and make the right decisions.” These many layers added to the performance will be evaluated: “If, in two The CEOs were also quite clear that just traditional top role made the majority of or three years, my whole value stating a purpose is not sufficient. CEOs we spoke with realize that they proposition is not responsible from an “Purpose is very important, but it’s how cannot succeed on their own, as Tony ecological, sustainable, or societal point you turn it into the everyday actions that Narvaez pointed out. “I think the role of of view, I am in trouble as a CEO. I will be help drive the business and culture,” said CEO is moving more and more toward how discredited by our customers. It will start Tony Narvaez, managing director of you make sure that you have the right from our children, who are being AusNet Services. And Permanent TSB team and capabilities around you,” he thoroughly educated today about Group Holdings’ Crowley agrees: “The said. Stephen McCann, group CEO and sustainability, and it will spread organizational purpose is not worth the managing director of Lendlease, added extremely quickly in the rest of our paper it’s written on if you are not living it that “the CEO is not a sole practitioner, society.” in your actions every day, both at an and it is important to have a good mix of bench strength around the top table and build the right capabilities that will allow you to lead without thinking that you have More than ever, CEOs need to have answers for everything.” to ensure their organizations are rooted in purpose, which provides stability and motivates people amid societal and economic uncertainty.
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Route to the Top 2020: Snapshot Through June 30, 2020
Global Highest % economy Lowest % economy
Key demographics
Average age at Average age now Appointed before age 45 New CEOs <1 year Average tenure (years) appointment 50 56 22% 15 % 6.2 53 Highest average 60 Highest average 48% Highest 36% Highest 9.9 Highest average United States United States Belgium Norway Belgium 46 Lowest average 53 Lowest average 11% Lowest 4% Lowest 3.9 Lowest average Ireland Sweden Portugal Singapore Sweden Ireland United States
Diversity
Gender Non-nationals % 15% Highest % 62% Highest 5 Ireland 21 Hong Kong
0% Lowest 0% Lowest Brazil China Portugal
Cross-border experience Cross-industry experience
67% Highest 33% Highest % Denmark % Portugal 36 17 Belgium 1% Lowest 6% Lowest China Hong Kong
Education
Advanced degrees MBA
88% Highest 42% Highest Finland Spain % % 59 25% Lowest 26 12% Lowest Ireland Netherlands
13 Route to the Top 2020
Global Highest % economy Lowest % economy
How CEOs were appointed
Internal appointments
80% 44% % Highest Lowest 65 France Finland
External appointments
56% 12% % Highest Lowest 30 Finland Netherlands
The routes to the top: C-suite experience
Previous C-suite overall CEO CFO
45% 17%
97% Highest 24% Highest Singapore Australia % 22% Lowest 4% Lowest 75 China China COO Other C-suite
18% 11%
97% Highest 48% Highest 27% Highest Singapore United States Brazil 36% Lowest 0% Lowest 0% Lowest China Belgium Finland Sweden
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Gaining essential diversity: A wider range of backgrounds, skills, and experience
Though CEOs expect to rely ever more on Though CEOs expect to rely building business has recruited more their teams, boards are also increasingly ever more on their teams, than 50% female graduates, in line seeking diversity of experience and with our overall group targets.” thought in the CEOs themselves—as boards are also increasingly Mandarin Oriental’s Riley put a different highlighted by the 117 different paths to seeking diversity of experience spin on diversity: “I’m particularly focused the top. The broader range of skills and and thought in the CEOs on diversity of age. The dynamic of a team experience companies will require in themselves—as highlighted by that has only people over the age of 50 CEOs going forward is often referred to in is a challenge in business thinking, as shorthand merely as diversity. The term the 117 different paths to the top. it’s missing valuable perspectives from has often been limited to quantifying the different age groups, especially as the number of women and other traditionally Gender diversity remains a challenge for age of our guests trends downward.” His underrepresented groups at the top of many industries, as Lufthansa Technik’s view is linked to the need of experience as corporate hierarchies, but as the diversity Bussmann explained: “Gender diversity a customer, which was also emphasized and inclusion (D&I) ethos matures and in a technology firm like ours is still a by UCB’s Tellier as he was pointing out company leaders are able to learn not bit challenging, as the pool of female the need to have racial representation only from their own experience but engineers is still rather small. The whole in clinical trials: “The Black Lives Matter also from a growing body of research, sector has to make heavily technical movement should have a huge impact they are increasingly applying a more professions more attractive to women. It on pharma corporations, as you have to holistic understanding of diversity and will probably take one or two management make sure that the Black community is how to achieve it. Today, boards in many generations until we have more diversity represented not only in your leadership economies often also seek cross-border from that perspective.” Lendlease’s but also in clinical trials. The recent and cross-sector experience, for example. Stephen McCann offered, “We have been lack of representation has been driven The reason for this is an increasing challenged by our industry and sector, by financial considerations—the corporate focus on ensuring the inclusion particularly in building, which has a low cost and speed benefits of Eastern of a wide range of relevant viewpoints percentage of female graduates coming European bases are considerable. throughout organizations, including through the pipeline. But we decided So, it goes back to a company’s in the C-suite and on the board. In our to change our recruitment model to purpose beyond the bottom line.” conversations with CEOs, they identified incorporate a broader perspective, and a broad range of D&I priorities. in the last three years, our Australian
15 Route to the Top 2020
Diversity: The sector view industrial, and healthcare and life sciences. Financial services stood out The most interesting findings around with the highest proportion of women, diversity among CEOs came when we while the healthcare and life sciences compared industry sectors. We looked sector had the most CEOs with cross- at five sectors: consumer, financial border experience and of different services, global technology and services, nationalities than the company’s base.
Diversity differences by sectors
Financial Global technology Healthcare & Overall Consumer services & services Industrial life sciences
Gender (%) Cross-industry experience (%) Cross-border experience (%) % women 52 50%
40% 41 38 36 35
30% 28 26
20% 19 17 16 14 12 10% 6 5 5 3 5 4 0%
Nationality (%) % non-national appointments Same region, same sub-region Same region, different sub-region Different region, sub-region is Different region, different sub-region United States/Canada/Western Europe 25% 25
20%
15% 14 13 12 10% 10 8 7 6 6 5% 5 4 4 4 4 3 3 3 3 2 1 2 1 1 0% 0
C-suite experience (%) CFO/COO Other C-suite No prior C-suite
30% 29 30 28 25% 25 23 25 24 23 22 21 20% 19 20
15%
10% 10 9 9 8 8 8 5%
0%
16 Heidrick & Struggles
Particularly at a time when—as we about how important cross-industry The largest percentage of new noted earlier—external appointments experience is. Mandarin Oriental’s Riley are on the rise and companies are said, “I don’t believe industry experience CEOs taking up their position seeking novel products, services, and is necessary in hospitality and most in a new industry came from approaches to growth in a wounded businesses. In the hotel industry, it’s financial services (29%), followed economy, it may be instructive to take very rare that CEOs have previously run by industrial (24%) and global an up-close look at the backgrounds of hotels, because the skill set needed technology & services (16%). the 17% of CEOs with cross-industry as CEO is very different from the one experience. The largest percentage of new for the general manager of a hotel.” CEOs taking up their position in a new Permanent TSB Group Holdings’ Crowley industry came from financial services told us, “I believe sector experience is (29%), followed by industrial (24%) and important, particularly in retail banking. global technology & services (16%). However, the right mix and diversity of Further, 7% of those with cross-industry experience is essential, particularly experience had held leadership positions across wider senior leadership teams.” in two different industries in their previous Most CEOs point out that there is a bit of a role and their previous role minus one. balancing act, as Direct Line Group’s James This percentage, albeit small, represents explained: “You need a balance around the a potentially rich, varied, and valuable table. As a CEO, you cannot pretend that reservoir of experience, insights, and suddenly you will have the intuition and approaches that can be applied to a understanding to run a completely different different company as a new CEO. sector, but sector background is not the The CEOs we spoke to had split opinions foremost leadership quality you need.”
Industry experience of those with cross-industry experience (%)
Financial services 29
Industrial 24
Global technology & services 16
Business services 15
Consumer 14
Government 7
Healthcare & life sciences 4
Academia 2
17 Route to the Top 2020
The upshot
In every respect, 2020 has been a highly unusual year. Trends we have been observing in our Route to the Top reports—such as increased diversity in CEOs’ backgrounds and experience—appear to be lower priorities right now than finding an experienced leader, particularly one who has successfully led a company through a major crisis.
We suspect that these shifting trends, their companies at one or two positions The trends we have been including the increase in external below CEO level to allow the executives observing may not represent appointments, may not represent to immerse themselves in the business. long-term change but rather a fight Under such extraordinary conditions long-term change but rather for survival in a very challenging and as we are now experiencing, whether a fight for survival in a very competitive global environment. companies ultimately decide to recruit challenging and competitive an external candidate or go with one Given the current increase in external global environment. of their own, they will at least have a appointments, however, we must reiterate range of candidates to choose from. the importance of CEO succession planning.2 We have noted previously that While the pandemic undeniably shifted ongoing planning—a rigorous internal CEO selection criteria and companies’ process overseen by the board as one priorities, broader diversity of experience, of its fundamental responsibilities—is sustainability, and purpose are not unfortunately not yet a high priority likely to disappear as priorities, as our for every company. We know from both interviews underline. When the global research and our client work that internally business environment returns to some developed successors are generally semblance of normal, we expect that lower-risk choices when available, these issues will not only reemerge as and, as we mentioned previously, many priorities but also be viewed as crucial companies bring potential CEOs into to long-term survival and growth.
2 Bonnie W. Gwin and Jeffrey S. Sanders, “The clock is ticking on CEO succession: Is your board ready?” Heidrick & Struggles, March 19, 2020, heidrick.com.
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Acknowledgments Heidrick & Struggles wishes to thank the CEOs who shared their insights. Their views are personal and do not necessarily represent those of the companies they are affiliated with.
Guillaume Boutin Penny James Tony Narvaez CEO, Proximus Group CEO, Direct Line Group Managing Director, AusNet Services Dr. Johannes Bussmann Chris Kempczinski CEO, Lufthansa Technik President and CEO, James Riley McDonald’s Group Chief Executive, Eamonn Crowley Mandarin Oriental CEO, Permanent Jerry Liu TSB Group Holdings President, Cargill China Jean-Christophe Tellier CEO, UCB Juan Jose Gonzalez Stephen McCann CEO, Ambu Group CEO and Managing Director, Lendlease
19 Heidrick & Struggles’ CEO & Board Practice has been CEO & Board built on our ability to execute top-level assignments and counsel CEOs and board members on the Practice complex issues directly affecting their businesses. We pride ourselves on being our clients’ most trusted advisor and offer an integrated suite of services to help manage these challenges and their leadership assets. This ranges from the acquisition of talent through executive search to providing counsel in areas that include succession planning, executive and board assessment, and board effectiveness reviews.
Our CEO & Board Practice leverages our most accomplished search and leadership consulting professionals globally who understand the ever- transforming nature of leadership. This expertise, combined with in-depth industry, sector, and regional knowledge; differentiated research capabilities; and intellectual capital, enables us to provide sound global coverage for our clients. Leaders of Heidrick & Struggles’ CEO & Board Practice
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