The report, “Fresh Faces in High Places: New CEOs & The Senior Team,” was based on an analysis of CEO and team trends from publicly available information on 20 international companies. The report identified the average changes made to senior teams by new CEOs, based on whether the CEO was named from the inside or outside.
Percent of team members who remain in place:
Outsider CEO: 37 percent
Insider CEO: 45 percent
Percent of team members who receive an internal promotion/transition:
Outsider CEO: 37 percent
Insider CEO: 45 percent
Percent of team members who are brought in from the outside or externally hired:
Outsider CEO: 26 percent
Insider CEO: 10 percent
The research also identified the top roles new CEOs are most likely to replace or change, based on whether the CEO was named from the inside or outside.
Outsider CEO:
1. Talent or chief human resources officer
2. Chief marketing officer
3. General counsel or chief legal officer
4. Technology executives (other than chief technology or chief intelligence officers)
5. Sales executives
Insider CEO:
1. General counsel or chief legal officer
2. Chief marketing officer
3. COO
4. Function or business unit leader
5. Sales executives
According to the report, several CEOs said they wished they had executed personnel changes earlier in their tenure, especially for those executives who did not meet expectations. “While the CEOs expressed the desire to provide substandard performers with ample time to prove themselves, the CEOs also realized that they could have significantly reduced the negative impact of these individuals on the executive team, their direct reports and the broader organization by taking more immediate action.”
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