Executive tenure statistics reveal increasing stability - Executive Briefing - Brief Article

HR Magazine, April, 2002 by Steve Bates

Signs of stability are emerging for corporate executives, who are staying in their jobs longer. The average tenure of exiting CEOs rose from 7.8 years in January to 14.4 years in February, the highest average tenure level in at least a year, reports Chicago-based outplacement firm Challenger, Gray & Christmas.

In October, says the company, the average tenure of departing executives was only 4.2 years. That figure has increased each month since then.

"CEO stability may have been bolstered in the aftermath of Sept. 11," says John Challenger, CEO of the outplacement firm. "While the number of departures and average tenure immediately following the attacks were more indicative of the type of turmoil our country was experiencing at the moment, we have since seen the turnover level off."

Last summer and fall, says Challenger, "CEOs were being scapegoated for the recession and were being shown the door in large numbers."

Executives likely will be vulnerable again this year in the wake of the Enron scandal, he states. But he also believes many organizations realize the benefits of stability in their top position. He adds that a slowing of the revolving door can contribute to corporate productivity and to the nation's economic recovery.

Steve Bates is senior writer for HR Magazine.