tenure of corporate India CEOs

a study by Randstad Executive Search

methodology & approach
The Tenure of Corporate India CEOs is a study done by Randstad Executive
Search to provide unique insights into the changing trends in leadership
tenure of the top companies in India.
The companies that form the BSE 100 index have been used as the basis for
this study as they are from a cross-section of industries and together act as
the bellwether of industry performance. The methodology used is a uniform
and simple approach of identifying the current CEOs of the companies from
the BSE 100 index, measuring their tenure till date and also measuring the
tenure of the immediate preceding CEOs of these companies to provide an
effective benchmark.
The key fields for which data was collected and analysed included the
tenure of current CEOs and immediate preceding CEO, type of recruitment
home grown Vs lateral and management structure of company family
run Vs professionally managed.
The study covers the companies that are part of the BSE 100 Index as on
June 18th, 2012. The tenure date of current CEOs has been taken from the
date of appointment till the survey date (June 18th, 2012), while they
continue to hold their current designations. The research data has been
extracted from secondary sources available in the public domain and none
of the BSE 100 companies were contacted for additional information.
Approximations have been done, wherever exact data was unavailable. The
information for a few fields was not available, but that does not impact the
results of the study in a big way.
Industry classification
of companies researched
Agricultue, Textile and Consumer Durables
Capital Goods, Housing and Diversified
Finance
FMCG
Healthcare
IT, Media and Telecom
Metal and Mining
Oil&Gas, Power, Chemicals and Petrochemicals
Transport Equipments and Services
3
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6.8 years
10.5 years
59.6% of the CEOs hold office for
less than 5 years
The financial services industry is a major contributor with 29% of the
current CEOs in office for less than 5 years and further analysis shows
that this is mainly from the public sector financial institutions. While
majority of current CEOs are in office for less than 5 years, the
analysis of the tenure of the past CEOs indicates a decrease in
numbers (35.1% had a tenure of greater than 10 years in office,
compare to 23.2% of current CEOs who held office for the same
period).
the average tenure of the current
corporate India CEO is 6.8 years
and has decreased by 35%

The average tenure of their immediate predecessor was 10.5 years
and this indicates a 35% decrease in the average tenure of the
current CEO.
CEOs Tenure Current Past
less than 5 years 59.6% 21.6%
5 to 10 years 17.2% 43.2%
more than 10 year 23.2% 35.1%
37.5% companies have lateral
CEOs
There is a growing trend of lateral CEOs. This number has gone up in
comparison to 29.3% of lateral CEOs of the immediate predecessor
analysis.
family managed companies have the highest average CEO tenure.
The average CEO tenure of family managed companies was 14.7 years as compared to a significantly lower CEO tenures in professionally
managed and public sector companies.

CEOs of public sector companies had the biggest drop of 54% in the average CEO tenure. This could be due to retirement and promotion
policies that they follow. But, professionally run corporates too surprised us with a 53% drop in the average tenure the current CEOs as
compared to their predecessor. Reasons attributed could be due to the uncertain economic conditions in the last decade.
Public Sector - 1.9 Yrs
Private Sector - 14.7 Yrs
[Family Run]
Private Sector - 3.9 Yrs
[Professionally Managed]
for more details, please write to us at
corporate.communications@randstad.in
or call us at
+91 44 61016101
about Randstad India
Randstad India offers the broadest HR services portfolio ranging from
Staffing, Search & Selection, HR Solutions and Inhouse Services. The
organisation has a vast network of offices across the country to be within
the reach of clients, candidates and flexi workers. The company, previously
called Ma Foi is a leader in the HR services industry in India for the past 20
years and became part of Randstad through its global acquisition of Vedior
in 2008. Randstad is the global #2 HR services provider active in 40
countries across the globe. Randstad India continues to focus on developing
customised and innovative HR services, leveraging on its unique strengths of
geographical presence and end-to-end capability across all HR service
functions.
For more information, please visit www.randstad.in
This study contains information in summary form based on secondary research and is therefore
intended for general guidance only. It is not intended to be a substitute for detailed research or
exercise of professional judgment. Neither Randstad India Limited nor any other member of the global
Randstad organization accept any responsibility for any loss occasioned to any person acting or
refraining from action as a result of any material in this publication.