Australia has 'highest CEO turnover rate' in world: Study
Australia has the highest rate of CEO turnover in the world, says a research.
According to research from consulting firm Booz and Company, 23.5 per cent of CEOs of ASX 200 companies left their job last year, well above the global average of 14.2 per cent.
This is also a large increase from the 13 per cent CEO turnover recorded for Australian CEOs in 2010, the report said.
Booz and Company partner Varya Davidson said the survey showed that being an Australian CEO is now officially one of the highest-risk jobs available.
According to News.com.au, the report said while 42 per cent of all CEO departures are planned, one in five (21 per cent) leave due to reasons of performance.
The high turnover of company chiefs is also due to the high rate of CEO departures in the mining sector, Davidson said.
Of the 59 CEO departure events in 2011, 23 were from mining and materials companies, the study said.
The research also found the median tenure in the job for CEOs who departed in the years 2009-2011 was 4.4 years, down from a peak of 5.2 years in 2006-2008.