Apparently being a CEO in Australia is one if the riskiest jobs you can do.
A new research has revealed the turnover of chief executives at Australian companies has hit record levels since the global financial crisis, with nearly a quarter of chief executives at ASX 200 companies losing their jobs last year.
Research from consulting company Booz & Company shows 23.5 per cent of CEOs of ASX 200 companies left their job last year, well above the global average of 14.2 per cent.
"It's a very high churn rate,” Booz & Co partner Varya Davidson said, according to the Australian Financial Review, “Australian CEOs are in one of the highest risk positions when you look at chief executives anywhere in the world.”
According to Booz & Company, of the 59 CEO departure events in 2011, 23 were from mining and materials companies and while 42 per cent of all departures were planned, one in five (21 per cent) left due to reasons of performance.
Booz said the short average tenure in Australia could be related to intense local media scrutiny of their performance.
The consultants found that 37 per cent of chief executive departures in Australia last year were instigated by mergers and acquisitions, the AFR added.