Where are Chicago firms finding C-suite hires?
The Crain's Chicago Business article, "Where are Chicago firms finding C-suite hires?," quotes Russell Reynolds Associates' Constantine Alexandrakis about the change in trends when it comes to companies hiring externally. The following is an excerpt of the article.
"Many factors could play into the changes this year, [Josh] Crist said, but one that stands out is the drop in tenancy among C-suite executives." Constantine Alexandrakis, managing director of Chicago recruiting firm Russell Reynolds Associates, agrees.
Changes among Securities and Exchange Commission requirements and new regulations from the Dodd-Frank Act, a consumer protection law passed in 2010 as a response to the Great Recession, have put more pressure on executives recently, Alexandrakis said. That pressure increases turnover—among CFOs in particular—stealing time they used to spend priming a successor.
LESS TIME ON THE BENCH
Historically, an employee “was given five, 10 years to develop and become the next CFO,” Alexandrakis said. “Nowadays, when the median turnover is three years, there's not enough time for that CFO to develop his or her successor, so that creates a gap inside that pushes (the company) to look outside.”
To read the full article, click here.