Interesting piece in the FT, drawing on research from DHR International suggesting that the CEO of a CAC 40 company (the largest firms in France) is likely to stay in position for twice as long as her equivalent in a DAX 30 company (Germany). Globally, tenure is shrinking - the average length was 5 years in 2016.
In addition to activism, the report suggests that German CEOs often stay for shorter periods as a result of a stricter succession planning.
The sample sizes are small, but an interesting read nevertheless.
“Shareholder activism is the main driver” of this change, said Frank Smeekes, Europe managing partner at DHR International. “CEOs are under greater scrutiny and pressure than ever before.”