THE NEW CLOSED SHOP: GLOBALWHO’S DECIDING CEO APPOINTMENTS:ON PAY? THE MAKE UP OF REMUNERATION COMMITTEES A VERY DOMESTIC ISSUE High Pay Centre Global CEO appointments: About the High Pay Centre Contents A very domestic issue

The High Pay Centre is an The High Pay Centre is resolutely independent non-party think tank independent and strictly non- 4 Foreword established to monitor pay at the partisan. It is increasingly clear that top of the income distribution and there has been a policy and market 5 Executive Summary set out a road map towards better failure in relation to pay at the top business and economic success. of companies and the structures 6 Introduction of business over a period of years We aim to produce high quality under all governments. It is now 7 North America: Staying home research and develop a greater essential to persuade all parties that understanding of top rewards, there is a better way. 9 Western : Trickling across the pond company accountability and business performance. We will The High Pay Centre is grateful to its 12 China: From state to state communicate evidence for change supporters for funding this work. to policymakers, companies and 13 Japan: Decades on a ladder other interested parties to build a @highpaycentre consensus for business renewal. www.highpaycentre.org 14 Rest of Asia: More introspection

15 Eastern Europe: Putin’s boys

This report was prepared for 15 Latin America: Impregnable borders the High Pay Centre by David Bolchover. David Bolchover is 16 Conclusion the author of Pay Check: Are Top Earners Really Worth It? and he sits 18 Appendix: Methodology and companies in the study on the advisory board of the High Pay Centre.

2 3 High Pay Centre Global CEO appointments: Foreword Executive summary A very domestic issue

The existence of a global talent pool In interviews, chief executives say >>Only 4 chief executives (CEOs) >>Only 14 CEOs were poached for business leaders is part of the their jobs are about much more than out of 489 companies for which from another country while mythology that has grown up around money. They are keen on developing executive career histories were occupying a role beneath CEO. high executive pay. It is given as a company strategy, turning their publicly available (those for 11 11 of these are in Europe, one in one of the reasons for its sharp rate business into a world leader and CEOs, all Chinese, were not), were China, one in South Korea and one of increase in the past decade. bringing on good people. poached while CEOs of another in Australia. Cross-border poaching company in a foreign country. All from beneath the top level therefore Top bosses are prepared - at This report debunks the myth four companies (Peugeot Citroën, amounts to 2.9% of total CEO short notice - to head overseas about those internationally mobile , Holcim and International appointments. to a new assignment for a bigger executives. The statistics do not Airlines) are in Western Europe. package, runs the argument. They back up the idea that they are all Cross-border poaching of current >>In North America, Japan, Latin must be incentivised to stay with flying round the world for new roles. CEOs therefore amounts to 0.8% America and Eastern Europe, not their employer or they will leave for The Fortune Global 500 biggest of total CEO appointments in the one CEO was appointed from pastures new. companies in the world show little Fortune Global 500. outside the country where the propensity to hire from outside their company is based. This argument has always own country. In fact, the global >>Only one CEO was poached appeared a little self-serving, if not talent pool is more like a drop in the while CEO of another company in >>80% of CEO appointments in somewhat demeaning, to suggest ocean. another continent. In 2010, Bayer the world’s largest companies are that chief executives are motivated (a German-based company) internal promotions; 20% were only by money. Deborah Hargreaves, founding appointed Marijn Dekkers, a Dutch external appointments. director of the High Pay Centre national, when he was at the time >>Just 32 (6.5%) current CEOs There are plenty of other reasons why CEO of in were poached from another someone would want to run a premier the United States. Cross-regional company while serving as a CEO. company other than just the rewards poaching of current CEOs therefore on offer. In fact, shareholders should amounts to 0.2% of total CEO >>A mere 13 out of 500 CEOs are probably be wary of the person appointments. women, a proportion of 2.6%. 97.4% who was incentivised purely by the are therefore men. • bonus – that is what led us into the financial crisis.

4 5 High Pay Centre Global CEO appointments: Introduction Regional Analysis A very domestic North America: Staying home issue

When Sir Martin Sorrell, the chief However, High Pay Centre research Not one current CEO of the 142 concerned could then revert to a executive (CEO) of the media on CEO appointments at the largest North American companies in system of internal promotion which company WPP, was asked in 2011 500 companies in the world (the the Fortune Global 500 was an seems to satisfy so many of their to justify his own pay package, he Fortune Global 500) reveals that the external hire from abroad. We can counterparts. asserted that his company was international market for CEOs is, in therefore conclude that companies forced to compete internationally for reality, extremely limited. Indeed, elsewhere in the world should The five CEOs who were recruited top executives. ““Look at what chief only a very insignificant proportion not pay too much attention to while heading another company are: executives of media companies are of CEOs of the largest companies in CEO salaries in North America. David Cote (), recruited paid in other parts of the world,” he the world are recruited from another Companies in that region have no from TRW in 2002; James McNerney said. “We are a worldwide company; company in another country. evident interest in hiring executives (Boeing), who came from 3M in we are the leading company in our from abroad, even though they 2005; Robert Dutkowsky (Tech Data) industry. The comparison, whether In North America, not one CEO are generally lower paid and thus, who was recruited from the much you like it or not, is with other in the 142 companies surveyed presumably, easier to recruit. smaller Egenera in 2006; Richard companies in the world.”1 was hired in this way. Only in Anderson (Delta Air Lines) who Western Europe do cross-border Even within North America, only five was brought in from rival Northwest Jeffrey Rosen, the deputy chairman appointments have any statistical current CEOs (3.5%) were poached Airlines in 2007 (the two companies of an investment bank who chairs the significance. However, even there, while CEO of another company, and merged a few months after his company’s remuneration committee, only four existing CEOs (2.6% of the a further 13 (9%) were recruited appointment); and Hubert Joly (Best subsequently used similar arguments total in that region) were poached from beneath the top tier in another Buy), recruited from Carlson in 2012 to defend Sir Martin’s £12.93 million from abroad while acting as the company. The vast majority of to change the fortunes of the ailing pay package for 2011, a reported head of another company. • companies (87%) appear to consumer electronics retailer. Only 56% increase on the previous year. prefer to recruit their CEO from the one of the largest North American “Whenever WPP recruits a senior considerable pool of experienced companies therefore currently executive, we look at international executives who have proven boasts a CEO who was poached in norms,” he said.2 themselves within the organisation the last five years while serving as and understand its culture. the head of another company. Pay consultants, headhunters and others who seek to justify high pay Benchmarking CEO salaries even A further 13 CEOs were recruited routinely refer to this supposed among domestic rivals could from outside the company, but global market for executive talent, therefore be of limited value in North weren’t at that time leading another and to the dangers of a brain drain America, and in other regions where organisation. These include of allegedly precious individuals external hiring is low (such as Japan Mondelez International (formerly if compensation levels do not and some other Asian countries). Kraft Foods) CEO Irene Rosenfeld 1 BBC News website, reflect what they claim is the highly Ambitious internal candidates are “David Cameron and who returned in 2006 to the Nick Clegg criticse di- competitive nature of this market. If highly likely to accept the role of company she served for twenty rectors’ 50% pay rise”, this view holds sway, CEO packages CEO, and subsequently perform years after a brief interlude as head 28 October 2011 2 The Telegraph, “WPP throughout the world would have to to their utmost, even for a small of Frito-Lay, a division of Pepsico, chair hits back at UK equal those offered in the market increase on their current salary. and Meg Whitman, appointed institutional investors (Indeed, according to a 2012 over Sir Martin Sorrell’s where overall remuneration is as CEO of Hewlett-Packard in pay”, 12 May 2012 highest, the United States.3 PricewaterhouseCoopers survey, 2011, having resigned from a 3 For evidence that CEO senior executives in the United pay in the United States similar position at eBay four years is highest, see, for States would accept, on average, previously. example, Ebert, F., Tor- a pay cut of 35% for their ideal res, R. & Papadakis, K., 4 “Executive compensa- job). Moreover, the possibility that These two women help to boost the tion: Trends and Policy they will later be snapped up by a percentage of women who occupy 4 PricewaterhouseCoop- Issues”, International competitor appears remote. Even ers, “Making executive Institute for Labor Stud- the top position in the largest North pay work: The psychol- ies, 2008 if they are poached, the company American companies to nine (one ogy of incentives”, 2012 6 7 High Pay Centre Global CEO appointments: Western Europe: Trickling across A very domestic the pond issue

of those, Angela Braly of WellPoint, Western European companies Stephen Hester, appointed by the resigned after the survey was North America: Number of appear more inclined than their bailed-out financial institution Royal completed), amounting to 6.3%, a companies per country in North American counterparts Bank of Scotland in 2008, after a significantly higher proportion than study to recruit their CEO externally. stint at British Land, the property in the rest of the world. Indeed, if we Moreover, four companies (out of investment company. take this region out of the equation, USA: 131 a total of 153) poached their CEO only 1.1% of CEOs are women (four Canada: 11 while he was serving in a similar Of the 15 CEOs in Western Europe out of 358). capacity in another country. hired from abroad, four (2.6% of all companies in this study from this The entrepreneurial nature of the In total, 43 companies (28%) hired region) had been CEOs of another United States is reflected in the fact their CEO from outside the company, company immediately prior to their that seven CEOs, including Michael 28 domestically and 15 from abroad. appointment: (Dell), Warren Buffett (Berkshire Almost three in four companies Hathaway) and Jeff Bezos (Amazon. therefore appointed from within. >>Philippe Varin, a French national com), were the original founders who returned to his home country of the company concerned. There Of those hired domestically from in 2009 to take charge at Peugeot are another 11 founder/CEOs in all another company, 12 had been Citroën after several years running other countries combined, including poached while serving as a CEO. Anglo-Dutch steelmaker Corus and one in Canada (Gerald Schwartz of The most recent of these was the then Tata Steel Europe (although private equity firm, Onex).• French retailer Carrefour, who technically not a CEO of an overall brought in their former employee corporate organisation at the time of Georges Plassat in 2012 from his appointment at Peugeot Citroën, Vivarte, the fashion conglomerate, in he had been CEO of Corus in 2007 a bid to arrest a three-year decline when he oversaw its merger with in the company’s stock price. Tata Steel); >>Bernard Fontana, who took over Two of these domestic appointments at the Swiss-based global materials involved the relevant individual company Holcim in 2012, having moving from one state enterprise to previously headed Aperam, the another – Jean-Paul Bailly, who in ArcelorMittal spin-off headquartered 2002 left RATP, the Paris transport in Luxembourg; network, to take over the reins at La >>Willie Walsh, who left Aer Lingus Poste, the mail service; and Ulrich in 2005 to become CEO of British Schröder, who was recruited in 2008 Airways (hardly a major international to head the German government- leap given the close business owned national development and cultural links between Britain bank, KfW Bankengruppe, having and Ireland), and subsequently occupied a similar position at one of of International Airlines Group, a its regional equivalents, NRW. product of the merger between the British airline and Iberia, its Spanish In the United Kingdom, two CEOs equivalent; were at the helm at their previous >>Marijn Dekkers, the one and only company before taking on their CEO in our study to be poached from current job – Richard Cousins, who a different continent while occupying left the building materials company the top position at another company. BPB to take over at the food service In 2010, the Dutch national left company Compass in 2006; and Thermo Fisher Scientific, the US- 8 9 High Pay Centre Global CEO appointments: A very domestic issue

based laboratory manufacturer, to based engineering company, However, this movement is still join Bayer, the German chemical and hired him as CEO in 2008; and, more of a trickle than a flow, with Western Europe: Number of pharmaceutical company (see profile). in 2007, Cynthia Carroll, another the eight appointments constituting companies per country American, joined the UK-based just 5.2% of total CEO appointments in study The remaining 11 (7.2% of the mining company Anglo-American in Western Europe. Even if the regional total) of these foreign- from Alcan, a Canadian aluminium movement was more significant, : 1 sourced hires were not previously manufacturer, where she had led its effect on CEO pay in Western Belgium: 4 working as CEOs. This comprises one of its divisions. (Carroll resigned Europe should be limited by the Denmark: 1 three Italian nationals who returned from Anglo-American in late 2012 fact that the most senior executives Finland: 1 home from other countries in Europe following shareholder criticism of the just below the top level in North : 33 to lead ENI, Intesa Sanpaolo and company’s performance). America, and indeed elsewhere, are : 32 Assicurazioni Generali respectively; generally paid significantly less than Ireland: 2 and eight who were recruited from We can conclude, therefore, that CEOs there. : 9 roles beneath the top position the only inter-continental movement Luxembourg: 2 in companies in North America, of executives in our study meriting For example, the median total : 11 including three who are not any prolonged discussion involves compensation for Chief Finance Norway: 1 European nationals. senior personnel from below the top Officers (CFOs) in the US S&P 500 Spain: 8 tier in North America who take up was $3.3 million, compared to $9.6 Sweden: 4 Stephen Elop, a Canadian who the CEO position at a company in million for CEOs.5 One might also Switzerland: 14 was head of Microsoft’s Business Europe. (Aside from Marijn Dekkers, argue that such executives would be Turkey: 1 Division, was recruited by Nokia, the only other inter-continental hires eager to seize the career opportunity UK: 26 the Finnish telecommunications moved from non-CEO positions at of the top position at another company, UK/Netherlands: 2 company, in 2010; Joseph Hogan, Saudi, British and US companies to and remuneration may therefore not be UK/Switzerland: 1 a US national, was leading GE South Korea, Australia and China their primary concern. • Healthcare, a division of General respectively). Electric, before ABB, the Swiss-

Marijn Dekkers: Uniquely global

Born: Tilburg, Netherlands in 1957 Education: Bachelor’s degree in Chemistry at the University of Nijmegen and PhD in Chemical Engineering from the University of Eindhoven Career: 1985-1995 – : Scientist in the corporate research centre in the United States and Netherlands 1995-2000 – AlliedSignal (later to become Honeywell International) – Led various divisions, including its Electronic Materials unit 2000-2002 – Chief Operating Officer of Thermo Electron Corporation, the world’s leading manufacturer of laboratory instruments (later renamed Thermo Fisher Scientific following the acquisition of laboratory

supplier Fisher Scientific) 5 See The Wall Street 2002-2009 – CEO of Thermo Fisher Scientific Journal, “Compensa- 2010- CEO of Bayer tion slows for CFOs”, 10 July 2012 and “The Citizenship: Dutch and US 2012 S&P 500 CEO pay study”, published by Equilar 10 11 High Pay Centre Global CEO appointments: China: From state to state Japan: Decades on a ladder A very domestic issue

Major companies in China have Far more representative of the overall Japanese CEOs are almost As might be reasonably a relatively high proportion of CEO cohort in the country is China exclusively recruited from within. expected in a country where externally hired leaders. 21 out of Telecommunications chief Wang Only one CEO out of 69 in our there appears to be no market the 61 (34%) company leaders Xiaochu, who joined one state-owned survey was recruited from outside for CEOs, pay is suppressed to a whose career details were available telecommunications company from the company. In 2009, Japan Post, comparatively low level. In 2010, were hired from outside the another when he left the top position the state-owned postal service, PricewaterhouseCoopers estimated company. Seven of those had been at China Mobile in 2004. appointed Jiro Saito, who had been that average CEO pay at Japan’s heads of other organisations in CEO of the Tokyo Stock Exchange. public companies was $560,000. their previous role, but 14 had not Although hidden perks and Although this study focused on a occupied the top position. privileges are reputedly awarded to The classic Japanese CEO is over much larger sample of companies Chinese executives,6 it is still clear 60 (the average age of all Japanese (close to 4,000), we also know However, in the case of China, that they earn far less than their CEOs in the survey is 62.5, the that several CEOs at high-profile “external” refers, in the vast majority Western counterparts. For example, highest average age per region in companies, such as at Panasonic and of cases, to an individual moving the 2011 official salary of Jiang this study), and has served in the Toyota Motor, did not that year cross from one state-owned (or controlled) Jianqing, the head of state-owned same company for his entire career. the $1.1 million threshold at which enterprise to another. If we were to Industrial and Commercial Bank For example, Hiroaki Nakanishi companies were required to disclose take the Chinese state as one large of China, was 1.96 million Chinese was given the top job at Hitachi executive salaries to the authorities.9 • employer, then there would be only Yuan, equivalent to around US$ forty years after he joined the two external appointments among 300,000.7 As Western companies company in 1970. Also in 2010, Ken the sample. are clearly not queuing up to Kobayashi was appointed as CEO recruit Chinese executives, this of Mitsubishi, having started work In 2012, Yusuf Alireza left his job comparatively low salary should there in 1971. as co-President of Asia at the US- not exert downward pressure based investment bank Goldman on remuneration levels in other Sachs (he was also a member of regions. However, it is nevertheless China and Japan: Number of the company’s Global Management interesting to note that Mr. Jianqing companies per country Committee) to become CEO of felt sufficiently motivated by his in study Noble Group, the -based salary to preside over net company commodities trader. Alireza is thus profits of US$ 33.1 billion in 2011.8 • China: 61 the only CEO in China to have been Japan: 69 recruited from abroad, and indeed (11 Chinese CEOs were from another continent. excluded because their career histories were not available) In addition, Ma Weihua was hired in 1999 by China Merchants Bank, the first shareholder-owned commercial bank in China, after serving at the People’s Bank of China, the country’s central bank, where he 6 See Time.com, “Does was deputy director of the planning China have an ex- ecutive compensation office and a regional director. problem”, 21 May 2012 7 South China Morning Post, “Worlds apart on pay scale”, 11 October 2012 8 China Daily, “ICBC 9 Businessweek, “In Ja- 2011 net profit up pan, Underpaid – And 25.6%”, 30 March 2012 Loving It”, 1 July 2010 12 13 High Pay Centre Global CEO appointments: Rest of Asia: Eastern Europe: Latin America: Australia: Some A very domestic More introspection Putin’s boys Impregnable borders musical chairs issue

The vast majority of the 33 Of the nine companies in Eastern There are three Latin American Among nine companies in Australia, companies in other Asian countries Europe, four were hired from CEOs, out of a sample of 13, three were recruited externally. have also recruited their CEO from outside, although none had been a who were recruited from outside Two were poached domestically within their own ranks. Not one of CEO elsewhere. the company. One was poached while serving as a CEO of another the four who was hired from outside while acting as a CEO. Javier G company, and one was recruited had previously been a CEO. Three of the external hires are Gutiérrez Pemberty moved from from abroad while serving in a Russian. Alexey Miller (Gazprom), one Colombian state-controlled capacity below the top position. Three of the four external hires were Igor Sechin (Rosneft) and company to another when he recruited domestically. In 2011, Herman Gref (Sberbank) all joined Ecopetrol from Empresa de In 2008, Westpac hired Gail Kelly Ranbir Singh Butola joined Indian have a background in politics, all Interconexión Electrica in 2007. from domestic rival St. Georges Oil from another state-controlled worked with Vladimir Putin in his Bank, shortly before the two oil company, Oil and Natural Gas St.Petersburg local government No Latin American CEO was recruited companies merged. Julian Segal Corporation, where he headed one administration in the 1990s, and from outside the relevant country. • was recruited in 2009 by Caltex of its subsidiaries; Kangsoo Choo were all appointed to their current Australia, the petrochemical was recruited by Korea Gas in 2008, roles while Putin was president of company, having previously been having in the past been a senior the country. Agencies of the Russian CEO of Incitec Pivot, the chemicals Latin America: Number of executive at Hyundai; and Ray Chen state have a controlling stake in and explosives manufacturer. companies per country took over at Compal Electronics as each of these companies. • Lastly, Mike Smith, formerly head in study far back as 1989 after occupying a of Asian operations for HSBC, the senior position at Kinpo Electronics. British-based multinational financial Brazil: 8 services company, became CEO of Eastern Europe: Number of Colombia: 1 One CEO in the region was Australia and New Zealand Banking companies per country Mexico: 3 recruited from abroad, and indeed Group in 2007. • from another continent. In 2012, in study Venezuela: 1 Nasser Al-Mahasher became CEO of S-Oil in South Korea, having : 1 previously worked for Saudi Aramco : 1 as global refining co-ordinator.• Russia: 7

Rest of Asia: Number of companies per country in study

India: 8 Malaysia: 1 Saudi Arabia: 1 Singapore: 2 South Korea: 13 Taiwan: 6 Thailand: 1 United Arab Emirates: 1

14 15 High Pay Centre Global CEO appointments: Conclusion A very domestic issue

High CEO pay relies on the notion The results of our study, which Miscellaneous facts >>The mean average age for all that only a tiny few individuals analyses companies’ actions rather CEOs is 57.2. The highest average have the necessary ability to run a than their words, thereby contradict >>The CEOs of 18 companies are age per country is in Japan (62.5). major global company. Of course, the habitual claims of those who also their founders. Seven are in the The youngest average age per companies also say that they have seek to defend high executive pay. USA, three in Japan, two based in region is Eastern Europe (51.1) to motivate any executive to achieve Companies do not generally scour Luxembourg, China and Taiwan and stated targets, and to align his the world to locate CEO talent, one each in Singapore and Canada. >>The youngest CEO is John interests with those of shareholders. leading us to the logical conclusion Elkann of Exor, an investment However, it would be hard to argue that they don’t actually believe that >>A further 15 CEOs are either the company based in Italy, who is 36. that CEOs of major companies in it is as rare as they often make son, grandson, great-grandson, Exor is controlled by the Agnelli previous eras, or in smaller modern- out. We can contrast the actions of great-great grandson, or nephew of family. Elkann is the great great day companies, have worked any these companies with those of, say, the founder (four in the USA, two in grandson of Giovanni Agnelli, who less hard for their much lower major football clubs, who recruit India, two in Brazil and one each in founded the predecessor company. salaries. It is the supposed scarcity players of proven rare talent from Canada, Taiwan, Italy, Mexico, South of talent, and what is often claimed every corner of the world in what Korea, Japan and France). >>The oldest chief executive is Paul to be the highly competitive market genuinely is a highly competitive Desmarais Sr., the CEO of Power for that talent, which is principally global marketplace. >>13 CEOs are women. Nine are in Corporation of Canada, who is 85. • responsible for pushing pay up to the USA (one has resigned since the the current high levels. Perhaps the most crucial finding research was completed), two in the of the study, as far as international UK (one has since resigned), one in But, in reality, companies do not executive pay levels are concerned, Brazil and one in Australia feel they need to search far and emanates from the United States. wide for their next CEO. The vast Not one CEO there was recruited majority prefer to look within their from another country. It seems, Methodology own company for an individual who, therefore, that the rest of the world by definition, has never proved needn’t worry too much that their The study consisted of an analysis of chief executive appointments at the 2012 Fortune himself to be capable of handling prized executives will be tempted Global 500, an annual ranking of the top 500 companies worldwide as measured by revenue. what we are repeatedly told are the away by the more lucrative rewards inordinately complex challenges of on offer from major corporations in We refer to the leading executive of an organisation as CEO, even though in some regions leading a major corporate concern. the United States. the term “President” or “Chairman” is often used. Of the remainder, only an extremely small number look outside their The competitiveness of the Executives are sometimes awarded the title of CEO for being the head of a division of a country to find a successor who is international market for CEOs, which company. As they are not the leading executive of an overall organisation, we do not count at the time in another CEO role. Only is said to drive up executive pay, them as CEOs for the purposes of our study. one looked outside their continent to has often been heavily exaggerated. find such an individual. The evidence from this paper should The study was conducted in September-October 2012. Where companies were in the midst of serve to deflate what seems to be an recruiting a new permanent CEO to fill a current void at the top, we looked at the career history enduring, and self-interested, myth. of the last incumbent.

Where companies had a joint CEO (Deutsche Bank in Germany, and Hyundai Heavy Industries in South Korea), this counted as only one CEO for the purposes of the study. All four CEOs of these companies were promoted internally.

16 17 High Pay Centre Global CEO appointments: Appendix: A very domestic Companies in the study issue

Domestic External External external Domestic hire from hire from Well-connected CEOs Mexico hire (not external abroad abroad Number of Internal CEO hire (CEO (not CEO (CEO Daniel Hajj Aboumrad – America companies Name – Company – Relationship to hire elsewhere elsewhere elsewhere elsewhere Movil – Son in study founder when when when when appointed) appointed) appointed) appointed) USA South Korea

North America 142 124 13 5 0 0 John B Hess – Hess Corporation – Bon-Joon Koo – LG Electronics – Son Grandson Western 153 110 16 12 11 4 Daniel Amos – Aflac – Son Europe David Dillon – Kroger – Great- Japan China 61* 40 13 7 1 0 grandson* Japan 69 68 0 1 0 0 Brian Roberts – Comcast – Son Canon – Fujio Mitarai – Nephew Rest of Asia 33 29 3 0 1 0 *Founder of Dillon Stores, later bought out by Kroger France Eastern 9 5 4 0 0 0 Europe Brazil Martin Bouyges – Buoyges – Son Latin America 13 10 2 1 0 0 Australia 9 6 0 2 1 0 Wesley Batista – JBS – Son Woman CEOs Alfredo Egydio Arruda Villela Filho Total 489 392 51 28 14 4 - Itaúsa-Investimentos Itaú – Great- USA grandson * Details on the career histories of 11 Chinese CEOs were unavailable Meg Whitman – Hewlett Packard India Virginia Rometty – IBM Founder- CEOs Taiwan Patricia Woertz – Archer Daniels Ratan Tata – Tata Motors – Great- Midland USA Terry Gou – Hon Hai Precision grandson Indra Nooyi – Pepsico Industry Mukesh Ambani – Reliance Angela Braly (has since resigned) - Warren Buffett – Berkshire Hathaway – Industries – Son WellPoint Michael Dell – Dell Irene Rosenfeld - Mondelez Jeffrey Bezos – Amazon.com Luxembourg Canada International Frederick Smith – FedEx Ellen Kullmann – DuPont Larry Page – Google Lakshmi Mittal – ArcelorMittal W Galen Weston – George Weston – Carol Meyrowitz – TJX Larry Ellison – Oracle James Ratcliffe – Ineos Group Grandson Ursula Burns – Xerox Rupert Murdoch – News Corporation Holdings Taiwan UK Japan Canada Wilfred Wang - Formosa Cynthia Carroll (has since resigned) Masayoshi Son – SoftBank Gerald Schwarz – Onex Petrochemical Corp – Nephew – Anglo American Han Chang-Woo – Maruhan Corp Alison Cooper – Imperial Tobacco Noboru Yamada – Yamada Denki Singapore Italy Brazil China Kuok Khoon Hong – Wilmar John Elkann - Exor Group – Great great grandson Maria das Graças Silva Foster – Ren Zhengfei – Huawei Investment Petrobras and Holding Co Li Shufu – Zhejiang Geely 18 19 High Pay Centre Global CEO appointments: A very domestic issue

Australia Microsoft World Fuel Services Aflac Target New York Life Insurance Manpower Gail Kelly – Westpac Banking Pfizer Plains All American Pipeline PepsiCo Aetna Domestic external hire (not CEO *At least two further women CEOs US Postal Service Sprint Nextel elsewhere when appointed) were due to start to commence their Johnson & Johnson News Corp roles on January 1, 2013, both in the State Farm Insurance Company Power Corp of Canada Ford Motor United States – Phebe Novakovic Dell George Weston Archer Daniels Midland at General Dynamics, and Marillyn WellPoint General Dynamics Intl FCStone Hewson at Lockheed Martin. Both Caterpillar Allstate Mondelez International are internal promotions. Dow Chemical HCA Holdings CHS Bunge American Express TIAA-CREF Region by region United Technologies Tyson Foods Tesoro North America Comcast Deere DirecTV Intel Murphy Oil Husky Energy Internal hire United Parcel Service Philip Morris International Hewlett-Packard Manulife Financial Nationwide Freddie Mac Exxon Mobil Lowe’s 3M American International Group Wal-mart Stores Prudential Financial Time Warner Sears Holdings Chevron Amazon.com Magna International ConocoPhillips Merck Northrop Grumman Domestic external hire (CEO General Motors Lockheed Martin Toronto Dominion-Bank elsewhere when appointed) General Electric Coca-Cola Publix Super Markets Berkshire Hathaway Express Scripts Holding Bank of Nova Scotia Boeing Fannie Mae Sunoco McDonald’s Best Buy AT&T Enterprise Products Partners Avnet Honeywell Valero Energy Safeway Macy’s Delta Air Lines McKesson Onex Tech Data Bank of America Sears Holdings Rite Aid Verizon Communications Walt Disney International Paper Western Europe JP Morgan Chase Johnson Controls Travelers Apple Suncor Energy Staples Internal hire CVS Caremark Morgan Stanley Alcoa IBM Sysco Northwestern Mutual OMV Group Citigroup FedEx Raytheon Anheuser Busch-InBev Cardinal Health Abbott Laboratories Halliburton Delhaize Group UnitedHealth Group DuPoint Eli Lilly JBC Group Kroger Google Emerson Electric Total Costco Wholesale Hess Massachusetts Mutual Life AXA Wells Fargo Royal Bank of Canada Insurance BNP Paribas Procter & Gamble United Continental Holdings Occidental Petroleum GDF Suez AmerisourceBergen Humana AMR Credit Agricole Marathon Petroleum Goldman Sachs Group Fluor Societe Generale Walgreen Ingram Micro TJX France Telecom MetLife Supervalu Sun Life Financial Group Auchan Home Depot Oracle Goodyear Tyre and Rubber Renault Medco Health Solutions Liberty Mutual Insurance Group Xerox Saint-Gobain 20 21 High Pay Centre Global CEO appointments: A very domestic issue

CNP Assurances Ineos Group Holdings National Grid ENI Vinci ING Group Royal Dutch Shell ABB Fonciere Euris EADS Centrica Veolia Environment Aegon Domestic external hire (not CEO Anglo American Bouygues Royal Ahold elsewhere when appointed) William Morrison Supermarkets SNCF Rabobank Group Vivendi Royal Philips Electronics Dexia Group Schlumberger SHV Holdings Groupe BPCE External hire from abroad (CEO Christian Dior Heineken Holding Air France-KLM elsewhere when appointed) Schneider Electric Randstad Holding ThyssenKrupp Michelin Banco Santander Deutsche Bahn Peugeot Citroën L’Oreal Banco Bilbao Vizcaya Argentaria Franz Haniel Bayer Danone ACS Energie Baden-Wurttemberg Holcim Lafarge Mapfre Group Telecom Italia International Airlines Group Sodexo Volvo Poste Italiane Volkswagen L.M. Ericsson Lyondell Basell Industries China E.ON Vattenfall GasTerra Daimler Nordea Bank Telefonica Internal hire Allianz Glencore International Gas Natural Fenosa BASF Nestle Lloyds Banking Group Sinopec Group BMW Novartis J Sainsbury China National Petroleum Metro Zurich Insurance Group Xstrata State Grid Munich Re Roche Group Industrial and Commercial Bank of Deutsche Telekom Credit Suisse Group Domestic external hire (CEO China Deutsche Post UBS elsewhere when appointed) China Mobile Communications Deutsche Bank Alliance Boots China State Construction Robert Bosch Coop Grou A.P. Moeller Maersk Group Engineering RWE Swiss Re Carrefour China Railway Group Landesbank Baden-Wurttemberg Migros Group Electricite de France SAIC Motor Continental Koc Holding La Poste Dongfeng Motor Group Lufthansa Group BP Alstom China FAW Group Heraeus Holding HSBC Holdings KFW Bankengruppe China Minmetals DZ Bank Tesco Statoil Baosteel Group Edeka Zentrale Vodafone Group Iberdrola China Communications Construction Phoenix Pharmahandel Barclays Repsol YPF China North Industries Group Commerzbank Aviva Adecco Group China Resources National TUI Rio Tinto Group Royal Bank of Scotland Shenhua Group Marquard & Bahls Prudential Compass Group Ping An Insurance Fresenius SSE Aviation Industry Corp of China Bertelsmann GlaxoSmithKline External hire from abroad (not China Post Group Accenture AstraZeneca CEO elsewhere when appointed) HeBei Iron and Steel Group CRH BT Group Jardine Matheson EXOR Group Legal and General Group Nokia Shougang Group Enel BAE Systems Sanofi China National Aviation Fuel Group UniCredit Group British American Tobacco Siemens Wuhan Iron and Steel Finmeccanica Standard Chartered Group Assicurazioni Generali China Guodian ArcelorMittal Imperial Tobacco Group Intesa Sanpaolo Jiangsu Shegang Group 22 23 High Pay Centre Global CEO appointments: A very domestic issue

Huawei Investment and Holding External hire from abroad (not Sumitomo Mitsui Financial Group Domestic external hire (CEO Hutchison Whampoa CEO elsewhere when appointed) Idemitsu Kosan elsewhere when appointed) China National Building Materials MS &AD Insurance Holdings Group Noble Group Mitsubishi Electric Japan Post Holdings Group TDDI China Ocean Shipping CEO career histories unavailable Canon Rest of Asia COFCO Tokio Marine Holdings ChemChina China South Industries Group Sumitomo Life Insurance Internal hire China Electronics Jizhong Energy Group Sumitomo China Shipbuilding Industry China Railway Materials Mitsubishi Chemical Holdings Reliance Industries Shandong Weiqiao Pioneeering Sinomach Softbank Bharat Petroleum Group Power China JFE Holdings Hindustan Petroleum China Pacific Insurance Henan Coal and Chemical Denso State Bank of India Ansteel Group Tewoo Group NEC Tata Motors Zhejiang Geely Zhejiang Materials Industry Group Bridgestone Oil & Natural Gas Xinxing Cathay International Group Shanxi Coal Transportation and Mitsubishi Heavy Industries Tata Steel Sales Group Kansai Electric Power Petronas Domestic external hire (not CEO Shandong Energy Group NKSJ Holdings Sabic elsewhere when appointed) Kailuan Group Medipal Holdings Wilmar International Mizuho Financial Group Flextronics International China Construction Bank Japan Cosmo Oil Samsung Electronics Bank of China East Japan Railway SK Holdings China National Offshore Oil Internal hire Suzuki Motor Hyundai Motor China Life Insurance Sharp POSCO China Telecommunications Toyota Motor Chubu Electric Power LG Electronics China Metallurgical Group Nippon Telegraph and Telephone Alfresa Holdings Hyundai Heavy Industries Bank of Communications Hitachi Aisin Seiki GS Caltex China United Network JX Holdings Showa Shell Sekiyu Korea Electric Power Communications Nissan Motor Fujifiilm Holdings Kia Motors China Datang Honda Motor T&D Holdings Woori Finance Holdings China Huadian Panasonic Maruhan Hyundai Mobis China Power Investment Nippon Life Insurance Sumitomo Electric Industries Hon Hai Precision Industry Greenland Holding Japan Tobacco Quanta Computer China Merchants Bank Meiji Yasuda Life Insurance Mazda Motor CPC Komatsu Formosa Petrochemical Domestic external hire (CEO Mitsubishi Sumitomo Chemical Wistron elsewhere when appointed) Tokyo Electric Power Ricoh PTT Mitsui Kobe Steel International Petroleum Investment Agricultural Bank of China AEON Suzuken China Railway Construction Mitsubishi UFJ Financial Group Nomura Holdings Domestic external hire (not CEO Sinochem Group Dai-ichi Life Insurance Daiwa House Industry elsewhere when appointed) CITIC Group Seven & I Holdings Yamada Denki China Huaneng Group China Southern Power Grid Nippon Yusen Kabushiki Kaisha Indian Oil People’s Insurance Company of Mitsubishi Motors Korea Gas China Marubeni Tokyo Gas Compal Electronics Aluminium Corporation of China Itochu Nippon Steel 24 25 High Pay Centre Global CEO appointments: A very domestic issue

External hire from abroad (not Domestic external hire (CEO CEO elsewhere when appointed) elsewhere when appointed)

S-Oil Ecopetrol

Eastern Europe Australia

Internal hire Internal hire

PKN ORLEN Group BHP Billiton Lukoil Wesfarmers TNK-BP International Woolworths Sistema Commonwealth Bank of Australia Surgutnefegas National Australia Bank Telstra Domestic external hire (not CEO elsewhere when appointed) Domestic external hire (CEO elsewhere when appointed) Mol Hungarian Oil and Gas Gazprom Westpac Banking Rosneft Oil Caltex Australia Sberbank External hire from abroad (not Latin America CEO elsewhere when appointed)

Internal hire Australia and New Zealand Banking Group • Petrobras Banco do Brasil Banco Bradesco Vale JBS Itaúsa-Investimentos Itaú Ultrapar Holdings Brazilian Distribution America Movil PDVSA

Domestic external hire (not CEO elsewhere when appointed)

Pemex CFE

26 27 Design | Rachel Gannon