Executive C-Suites Still Soft on Minorities, Women and Succession Planning

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In a survey entitled “The Changing Face at the Top,” nearly 400 senior human resources executives from 24 countries around the world shared their insights on the demographic make-up of the C-suite (the chairman/CEO and executive management team), as well as trends regarding talent demand and acquisition, diversity and succession planning. The IMD International survey results uncovered some interesting and alarming trends, including: 

Women, Minorities & Diversity

·         Only 20% of all executive committee members are female, with nearly one-half of respondents reporting no females whatsoever among their executive committee members.

·         Seventy-eight percent of respondents believe diversity is an important strategy, but only 13% believe the number of minorities in the executive suite will increase over the next three years.

·         Approximately 20% of C-suite executives are a different nationality than the country in which their headquarters are based. However, less than 10% (9.2% of CEOs, 9.9% of CFOs and 8.1% of COOs) are of an ethnic minority.

“There is no doubt that women have progressed considerably among our global workforce, especially over the last few decades,” said Sherilyn Shackell, CEO of Highfield Human Solutions (United Kingdom) and an IMD International board director. “Yet, despite reports that women are breaking through the ‘glass ceiling,’ it appears that the ceiling is just ‘slightly cracked’ rather than broken.  With C-suite turnover still alarmingly high and shareholder scrutiny driving some of the most significant and impactful changes in the past several decades, the survey numbers show that only 6.8 percent of CEOs are women, while 9.9 percent and 10.9 percent have risen to CFO and COO respectively. Unfortunately, these numbers do not bode well for the advancement of women into the C-suite.”

When looking at the complete gender and diversity survey picture, Thomas Fuller, general managing partner of Epsen Fuller/IMD International Search Group (United States) and also an IMD International board director, had this to say about the results: “We believe that a broader pool of both women and diverse executives in the C-suite will enhance diversity in perspective and drive a more open decision-making process, therefore giving companies a competitive advantage. Those organizations that nurture diversity of thought and ideas being exchanged in a workplace will be more connected to the rapid changing global marketplace, better able to adapt to the speed of those changes, and more able to compete and win in an increasingly competitive and diverse global market.”

Talent Shortage, Succession Planning & Baby Boomer Impact

·         Internal senior management development is falling short, as nearly one-third of CEOs, 30% of COOs, and one-half of CFOs are from outside the organization.

·         Even more alarming, only 30% indicated they have an identified successor in place for CEO, CFO and COO positions.