# The changing nature of a CEO
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2017-05-25
Category: BUSINESS
Category URL: https://financedigest.com/category/business
Meta Title: The Changing Face of FTSE 100 CEOs
Meta Description: Discover the evolving landscape of CEOs in the FTSE 100 and the essential qualities needed for success in a rapidly changing market.
URL: https://financedigest.com/the-changing-nature-of-a-ceohtml

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_**Phil Sheridan**, senior managing director at_ Robert Half UK _, looks at how the profile of today’s CEOs are changing_

We are entering an era where the pace of change is accelerating. Organisations are having to fight to retain relevance either among their target audiences, against their traditional competitors or new market entrants that are reshaping market dynamics. As a result, the average lifespan of a FTSE listed company is decreasing. [A study](https://wwwf.imperial.ac.uk/business-school/executive-education/resources/articles/why-companies-die/) has revealed that of the 100 companies in the FTSE 100 in 1984, only 24 were still breathing in 2012. The survival factor for today’s companies relies on having an established leadership that can combine a working knowledge of the company or [industry with the commercial acumen needed to operate in a globalised market](https://www.financedigest.com/nitrate-free-bacon-market-industry-research-segmentation-key-players-analysis-and-forecast-to-2029.html "Nitrate-Free Bacon Market Industry Research, Segmentation, Key Players Analysis and Forecast to 2029") experiencing a fast pace of change.

**A** [digital savvy leader](https://www.financedigest.com/digital-trends-for-banking-leaders-looking-to-compete-in-2022.html "Digital trends for banking leaders looking to compete in 2022")

As the pace of [change continues](https://www.financedigest.com/great-resignation-continues-as-quarter-of-workers-look-to-change-jobs-pwc.html "‘Great Resignation’ continues as quarter of workers look to change jobs – PwC") to accelerate so does the profile of a CEO. While a financial background was once a pre-requisite for a CEO role, we are now seeing the emergence of a greater variety of [industry backgrounds among the top](https://www.financedigest.com/automotive-chrome-trim-products-market-industry-analysis-and-detailed-profiles-of-top-industry-players.html "Automotive Chrome Trim Products Market: Industry Analysis and Detailed Profiles of top Industry Players") FTSE leaders. For example, despite the absence of technology companies on the FTSE 100, the role of the CEO in guiding companies [towards profitability](https://www.financedigest.com/britains-kingfisher-sees-annual-profit-towards-higher-end-of-forecasts.html "Britain’s Kingfisher sees annual profit towards higher end of forecasts") and growth means more than one in 10 CEOs now has a background in technology. With [technology constantly evolving and disrupting industries](https://www.financedigest.com/adverty-launches-industry-first-streaming-video-technology-for-in-play-ads-in-partnership-with-seenthis.html "Adverty launches industry-first streaming video technology for In-Play™ ads in partnership with SeenThis"), companies simply can’t keep still. Organisations are grasping at the opportunities [digital transformation](https://www.financedigest.com/financial-digital-transformation-an-opportunity-not-a-threat.html "Financial digital transformation: An opportunity, not a threat") presents and need leaders that can embrace this mind-set and use it to create new growth opportunities or protect competitive advantage.

**A generational shift**

With lifespans increasing and the age of retirement going-up, there has been a generational shift occur in the FTSE 100 over the last decade. There are now just eight CEOs aged under 50 on the FTSE 100, a decline of 16% since the turn of the decade highlighting the importance of experience at the [top level](https://www.financedigest.com/zara-owner-inditex-sales-rebound-to-top-pre-pandemic-levels.html "Zara owner Inditex sales rebound to top pre-pandemic levels").

[CEOs of the FTSE 100 have responsibility for guiding some of Britain’s largest](https://www.financedigest.com/russias-largest-lender-sberbank-on-track-to-profitability-says-ceo.html "Russia’s largest lender Sberbank on track to profitability, says CEO") and most successful businesses which contribute to the country’s prosperity. As a result, it’s imperative that they have the credentials and experience to direct the vision, confidence and economic wellbeing of a company. In any industry, it can take time for talented staff to develop into self-assured and well [prepared business leaders so it’s no surprise that the average age of a CEO](https://www.financedigest.com/exclusive-naftogaz-ceo-prepared-to-step-down-if-it-would-facilitate-debt-deal.html "Exclusive-Naftogaz CEO prepared to step down if it would facilitate debt deal") now stands at 55.

**Loyalty is rewarded**

The importance of continuity and succession planning has also been highlighted by the latest [annual Robert Half FTSE 100 CEO Tracker](https://www.roberthalf.co.uk/news-insights/reports-guides/cfo-insights/robert-half-ftse-100-ceo-tracker?utm_source=media&utm_medium=execblog&utm_campaign=ftseceotracker). A staggering 41 per cent of FTSE 100 [CEOs have been promoted to the top](https://www.financedigest.com/top-diamond-producer-de-beers-names-equinors-cook-as-new-ceo.html "Top diamond producer De Beers names Equinor’s Cook as new CEO") position from within, a number that has almost doubled in the last three years. We have also seen a [rise in the number](https://www.financedigest.com/ryanair-passenger-numbers-rise-in-august-to-11-1-million.html "Ryanair passenger numbers rise in August to 11.1 million") of CEOs that have spent their whole career with the company – one in 10 CEOs of a FTSE listed company have worked through the ranks showing that loyalty pays.

In the face of political uncertainty and a globalised, homogenised market then organisations are increasingly looking internally to find leaders that can combine a working knowledge of the company with the commercial acumen needed to navigate a complex and fast changing business environment. Ultimately, finding a promising target takes time, there’s no quick fix and the process should be constantly evolving. After all, the average tenure of a [CEO has consistently been just over five years](https://www.financedigest.com/a-network-of-networks-will-ceos-be-replaced-by-ai-in-the-next-10-years.html "A Network of Networks: Will CEOs be Replaced by AI in the Next 10 Years?") since 2015 so organisations need to think ahead. However, the effectiveness of a succession planning programme depends largely on active and visible support by [top management](https://www.financedigest.com/tinnitus-management-market-to-top-us-3-2-bn-driven-by-growing-burden-of-hearing-disorders-fmi.html "Tinnitus Management Market to Top US$ 3.2 Bn Driven by Growing Burden of Hearing Disorders: FMI"). Their engagement [sends a powerful message](https://www.financedigest.com/with-tighter-grip-beijing-sends-message-to-hong-kong-tycoons-fall-in-line.html "With tighter grip, Beijing sends message to Hong Kong tycoons: fall in line") throughout the organisation that such efforts are essential to the firm’s long-term vitality.

Ultimately, the primary goal of every business is to achieve commercial goals, deliver [growth and protect the longevity of the company](https://www.financedigest.com/veterinary-teleradiology-market-insights-by-leading-companies-and-emerging-growth-till-2031.html "Veterinary Teleradiology Market Insights by Leading Companies and Emerging Growth Till 2031"). However, this relies on [building an executive team](https://www.roberthalf.co.uk/executive-search?utm_source=media&utm_medium=execblog&utm_campaign=ftseceotracker) that has the skills and resource to enable profitability and create a sustainable competitive advantage. For talented professionals aiming for the top, this means maintaining a commitment to lifelong learning with a [strong focus on building the management skills and commercial curiosity that will allow them to compete in an increasingly complex world](https://www.financedigest.com/u-s-yield-curve-inverts-after-strong-jobs-data-world-shares-mixed.html "U.S. yield curve inverts after strong jobs data; world shares mixed"). In this homogenised global environment, leaders who can combine their [experience within industries with a working](https://www.financedigest.com/remote-working-during-covid-a-successful-social-experiment.html "Remote working during COVID: a successful social experiment") knowledge of the company and strong fiscal responsibility will be relied on to steer the course of a company.


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