Boards look for continuity in leadership amid global political change in Q2

• FTSE 100 businesses brought in no new CEOs in Q2 2024, a Q2 first for the Index

• Globally Q2 saw uncharacteristic stability for CEOs with dismissals down significantly

• FTSE 100 is 33 years away from gender parity at CEO level

July 22nd, London – Boards are looking for stability at the top in a quarter which saw major political upheavals in the UK, India, France and the European Parliament according to Russell Reynolds Associates (RRA).

RRA’s latest Global CEO Turnover Index, shows that the FTSE 100 saw no CEO departures or appointments in Q2, the first quarter with no movements in the FTSE 100 since the Index began in 2018. as Europe witnessed a series of dramatic national and supranational elections.

Historically the halfway point of the year sees a spike in global CEO departures as boards look to tie up year-end reporting with their outgoing CEO in Q1 before announcing any leadership changes in Q2. However, in Q2 2024, just 51 CEOs globally left their roles, the lowest Q2 level recorded since the Index began in 2018.

Boards have clearly prioritised stability in Q2 with CEO dismissals down by more than half the quarterly average¹ to just 12% globally this quarter. Where new CEOs have been appointed, the vast majority (78%) were internal promotions. Furthermore, 23% of CEOs departing did so as part of a planned succession process, twice the 6-year global average of 11%.

Laura Sanderson Co-Head of Europe, Middle East & India at Russell Reynolds Associates, said:

“The year of elections is delivering the political disruption which many boardrooms expected. With around half of the world's population due to vote by the end of the year, regulatory uncertainty and engagement with new policy makers will be a significant priority well into 2025.”

“We are seeing boards reach for consistency in leadership to steer them through these transitions. With sustainability policy, taxation and growth becoming highly politicised issues, the ability of leadership teams to pivot quickly to the unexpected will be key.”

Emma Combe, Head of UK Board Practice at Russell Reynolds Associates, added:

“We are starting to see the benefits of a long-term cultural shift towards succession planning and the promotion of internal candidates.

“With the right preparation internal candidates regularly outperform even experienced external candidates thanks to their deep institutional knowledge and strong cultural ties to their organisation.”

Steady global progress towards gender parity at CEO

Looking at the first half of 2024, this increased stability at the executive level has also aided gender diversity. In the first half of the year, the number of women CEOs globally increased by 7.7%, with all but one index seeing net increases in female leadership.

The FTSE 100 has seen faster progress towards CEO gender parity than any other global Index since 2018, but at the present rate of change will only reach parity by 2057. Concerningly this is more than 16 years ahead of the next best performing index.

The news comes as the UK elected the largest number of woman MPs in parliamentary history, with a 19.5% increase since the 2019 General Election. However, while 40% of MPs are now women, just 10 FTSE 100 CEOs are.^*

Laura Sanderson concluded:

“Seeing Britain’s most gender diverse Parliament sit for the first time this quarter was a reminder of how far we have come and how much further we have to go to achieve parity at CEO level.

“While the FTSE 100 is making the fastest progress of any major index, the fact remains that 89 out of 100 FTSE leaders are men. Yet there is significant evidence that gender balanced leadership teams are more effective leadership teams. Boards, policy makers and industry groups must push together to accelerate progress in order to drive long term improvements in company performance.”

_{^*The FTSE 100 also has one woman interim CEO.}

Notes to the Editor
Russell Reynolds Associates’ Global Index of CEO Turnover tracks CEO departures since 2018 from constituent companies of the following global stock indices: ASX 200, CAC 40, DAX 40, Euronext 100, FTSE 100, FTSE 250, HANG SENG, Nikkei 225, NSE Nifty 50, S&P 500, S&P/TSX Composite, and STI. More data and analysis can be found at the dedicated Global Index of CEO Turnover section of the Russell Reynolds website at: https://www.russellreynolds.com/en/insights/reports-surveys/global-ceo-turnover-index

_{¹The global quarterly average rate of outgoing CEOs being fired is 25%, in the period covered by the Global CEO Turnover Index.}