Mideast CEO Casualties Surpass Global Average

Chief executives in Middle East more likely to leave their jobs last year than counterparts from other regions, a new report reveals.

More chief executives were replaced in the Middle East last year than most other regions, a new report has found.

In 2009, the turnover for CEOs in this region was 16.4 per cent compared to 14.3 per cent globally, according to Booz & Company’s tenth annual CEO Succession Study.

“There are two contradictory dynamics that serve as precursors to this turnover,” the management consultancy’s report said. “Researches have shown that CEOs’ restructuring plans were triggered by the world recession after years of economic boom.

“However, more former CEOs are stepping into other business roles, due to the rapid growth and development that the Middle East region is experiencing.”

While global succession rates remained generally high last year, the number of sackings fell to 3.3 per cent after holding steady at 5.1 per cent for ten years up to 2008.

The financial services industry was the most volatile for CEO turnover last year, accounting for 17.2 per cent of chief executive departures. Of that number, 5.3 per cent were forced to leave.

In contrast, healthcare CEOs enjoyed the most stability with a 10.3 per cent turnover and only 0.6 per cent forced departure rate.