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The number of newly appointed retail CEOs fell significantly in the UK in 2021, according to new figures from Korn Ferry, which found that only 18 retail CEOs were appointed in the UK last year, down by 54% from 33 in 2020.
The report analysed UK retail companies with annual revenues in excess of £50m.
Its data found that 11of the 18 (61%) newly appointed CEOs were first-time CEOs, and all but two were internally promoted. However, all new retail CEOs came from within the retail sector, and more than a third (38%) of the former CEOs had been in the office for three years or fewer.
Sarah Lim, Korn Ferry managing director, retail board and CEO services, EMEA, said: “In the first half of 2021 we saw very low retail CEO turnover. Interestingly, there was a significant shift in the second half of the year, when we saw a dramatic increase in the volume of new CEO recruitment.
“Many of the organisations that commenced new CEO searches in the latter part of last year have yet to announce these new CEOs, so we expect to see an increase in the number of CEOs appointed in 2022.”
She added: “It is interesting to note the short tenure of many of the departing CEOs. Whilst in some cases this was a result of planned succession or internal promotion, for several others this was indicative of business distress, board dissent or dissatisfaction with leadership.”
In addition, only two ethnic minority CEOs were appointed last year according to the data, which was the same number reported in 2020. Only four female retail CEOs were appointed, half the number from the previous year.
Lim said: “We know that organisations with diverse leadership perform at a higher rate than those that do not. It’s critical that boards work to bring more diverse candidates into the recruiting mix.”
