The Best of Times and the Worst of Times: Record Turnover and CMO Succession Crisis Continues
To better understand current trends in the appointment and turnover of marketing officers, Russell Reynolds Associates tracked and analyzed 376 notable, publicly disclosed marketing-leadership moves in 2017.
CMO succession crisis intensifies. In 2017, 74 percent of publicly reported chief marketing officer appointments were external hires. This compares to 69 percent in 2016 and 68 percent in 2015. Since companies rarely select new chief marketing officers from existing ranks, aspiring CMOs will likely need to switch employers to attain the top marketing job. A notable exception is Fortune 100 companies, where 84 percent of 2017 CMO appointments were promoted internally, up from 82 percent in 2016 and 77 percent in 2015. This suggests large companies have deeper benches of talent and development opportunities that foster internal promotions.
Record turnover continues. There were 376 publicly reported CMO appointments in 2017 in the US, up from 350 in 2016 and 281 in 2015. This is the highest number we have observed since we began tracking all marketing appointments in 2014.
Approaching gender parity. 43 percent of newly-appointed CMOs in 2017 were female. This is identical to 2016 and up from 37 percent in 2015.
Reduced mobility across industries. Despite the increase in external appointments, the proportion of companies recruiting CMOs from different industries declined. Only 27 percent of marketing appointments came from outside the industry, a decrease from 33 percent in 2016 and 35 percent in 2015. The consumer and technology sectors overwhelmingly appointed from within their own industry – each greater than 80 percent. On the other hand, the healthcare and industrial sectors demonstrate a sustained pattern of recruiting CMOs from outside their respective industries. Almost three-quarters of healthcare CMO appointments came from outside the sector in 2017, similar to 2016.
futures. More exiting CMOs are moving into P&L leadership roles than ever before, suggesting the CMO is viewed as having greater commercial and strategic impact. Of CMOs who exited their roles between July 2016 and June 2017 and have taken on a new role, 28 percent are now in a P&L role, an increase from 22 percent in the previous 12 months.
Industry Breakdown of Marketing Moves
The consumer industry accounted for 52 percent of all marketing-leadership turnover in 2017, on par with the 51 percent seen in the prior year, but down from 56 percent in 2015. Within consumer, the retail sector has shown increased volatility, with 14 percent of all marketing moves in 2017, 13 percent in 2016, and 9 percent in 2015. Moreover, there has been over a 120 percent increase of annual retail marketing moves from 2015 to 2017.
For the remainder of the sectors within the consumer industry, consumer digital and media and consumer products and services have seen steadily less turnover in each of the last two years. They accounted for 14 and 9 percent of all marketing moves in 2017, respectively. Leisure and hospitality had 15 percent of all marketing moves last year, which was an increase from 11 percent the prior year but a slight drop off from 16 percent in 2015.
Internal vs. External Hires
The trend of externally hiring top marketers continued strongly last year as external appointments accounted for 74 percent of all marketing moves. The proportion was 69 percent in 2016 and 68 percent in 2015. Given that just one out of every five CMO appointments came from within the organization in 2017, it’s clear that many companies struggle with CMO succession planning.
An analysis of Fortune 100 companies gives a different perspective, however. Seventy-two percent of current F100 CMOs and 84 percent of those appointed in 2017 were internal promotions. Given the size of these businesses and the amount of resources they have, it is likely they place a bigger focus on CMO development and succession than others. Conversely, these statistics may also suggest that F100 businesses are more apprehensive about hiring disruptive marketing talent than smaller companies.
Companies in the industrial and natural resources and healthcare industries, as well as the consumer products and services sector have seen steady increases in external CMO hires. In 2015, just 35 percent of marketing appointments were external. That proportion jumped 46 percentage points over the last two years – 81 percent in 2017. Additionally, Seventy-nine percent of healthcare marketing appointments in 2017 were external, up from 76 percent in 2016 and 71 percent the previous year. Even the consumer products and services sector – known for homegrown marketing talent – saw a 7 percentage point increase over the last two years, despite having the lowest proportion of external appointments among all sectors. By contrast, the financial services industry is trending toward promoting more internal talent to the top marketing post. In 2017, 68 percent of marketing appointments were made externally, down from 82 percent in 2016 and 86 percent in 2015.
Looking deeper at internal appointments, the average tenure within an organization prior to promotion to the CMO role has seen a significant decrease. Across all industries, that number has dropped to 7.4 years, down from 8.2 years in 2016 and 10.7 in 2015.
Inside of Industry vs. Outside of Industry
When they turn to external CMO hires, consumer and technology businesses have a strong tendency to appoint CMOs from companies within their respective industries. About 80 percent of appointments in each industry fit this profile in 2017.
Financial services and industrial and natural resources companies are also trending toward appointing marketing leadership from within their respective industries. Three of every five external CMO appointments within financial services came from the same industry in 2017, which was up from 53 percent the prior year and 36 percent in 2015. The proportion for industrial companies was 47 percent in 2017, an increase from 33 percent and 17 percent, in 2016 and 2015, respectively.
Overall, 73 percent of all external marketing appointments were inter-industry last year. This was an increase from 67 percent the previous year and 65 percent in 2015. One potential downside of this trend is that it may suggest a prevalence of less-disruptive hires within the marketing function at a time when many companies need a fresh perspective.
Since the majority of marketing moves come from consumer-facing companies, we took a deeper look at the industry. Taking into account the individual sectors –
Both apparel/retail and consumer products and services companies hired the majority of marketing leaders from within their respective sectors in 2017. The consumer digital and media sector saw the biggest decrease from 2016 to 2017, as the percentage of inter-sector marketing hires fell from 61 to 47. Regarding leisure and hospitality, exactly half of CMO appointments were from within the same sector, which was a slight increase from 48 percent in 2016 and a decrease from 58 percent in 2015.
Where Do Chief Marketing Officers Go?
To continue to follow the career paths of top marketers, Russell Reynolds Associates also tracked and analyzed 118 outgoing CMOs who left their roles between July 2016 and June 2017. Among this group of outgoing
The largest proportion of outgoing marketers during this time period – 44 percent – moved onto a new company. Of those, 59 percent took another marketing role; most in the same industry. Just over 20 percent of outgoing marketers were promoted internally, of which 38 percent took a P&L leadership role such as president or CEO.
Of the CMOs who exited their roles between July 2016 and June 2017 and have taken on a new role, they more likely to be appointed to a P&L leadership role outside their respective organization than inside – 17 percent versus 13 percent.
See below for details on the full list of marketing moves from Q3-Q4 2017. For details on the moves from Q1-Q2 2017, see our previous report from July 2017: Record Marketing Turnover and the CMO Succession Crisis.
APPAREL / RETAIL
Carhartt has appointed Tony Ambroza as chief brand officer. Ambroza is responsible for leading brand engagement including TV commercials, social media, events, retail marketing and direct-to-consumer. He was most recently senior vice president, marketing, at the company.
Columbia Sportswear saw the departure of its chief marketing officer, Stu Redsun.
David's Bridal has appointed Liz Crystal as executive vice president, chief marketing officer. Crystal was most recently executive vice president, chief marketing officer, at Express.
David Yurman has appointed Carey Krug as chief marketing officer. Krug is responsible for overseeing advertising, branding, marketing and digital strategies. She was most recently senior vice president, global marketing – Polo Ralph Lauren, at Ralph Lauren.
Ethan Allen Global has appointed Bridget O'Brien as
The Fresh Market has appointed Mary Kellmanson as
Fresh Thyme Farmers Market has appointed Amy Parker as vice president, marketing. Parker is responsible for all aspects of marketing and advertising. She was most recently senior vice president, marketing & advertising, at
Gap Inc. has appointed Mary Alderete as
GNC saw the departure of its executive vice president and chief marketing & eCommerce officer, Jeffrey Hennion.
Goodyear Tire & Rubber Company has appointed Mike Dwyer as chief marketing officer, North America. Dwyer is responsible for brand, product, retail & shopper marketing, eCommerce, market research and Goodyear Racing. He was most recently global head of brand marketing at the company.
Guitar Center has appointed Jeannine D'Addario as chief marketing & customer officer. D'Addario is responsible for branding, media, internal & external communications, creative services, analytical marketing, digital, event & entertainment marketing and consumer engagement. She was most recently chief marketing officer at Whole Foods Market.
Hudson's Bay Company has appointed Milton Pappas as chief marketing officer. Pappas is responsible for leading the
J. Crew has appointed Vanessa Holden as
Kroger saw the departure of its vice president, customer communications & marketing, Natalie Ream.
Le Creuset has appointed Christopher Scinto as vice president, marketing. Scinto was most recently senior vice president and chief marketing officer at Clarks Americas.
Lululemon has appointed Fred Uribe as senior vice president, brand. Uribe was most recently chief marketing officer at MCM Worldwide.
Mills Fleet Farm has appointed Terry Brophey as senior vice president, marketing. Brophey was most recently corporate vice president, integrated marketing, at Tempur Sealy International.
Office Depot has appointed Jerri Devard as executive vice president and chief marketing officer. Devard is responsible for brand positioning, overseeing the integration of all marketing and communications initiatives and driving the growth and implementation of strategic marketing activities. She was most recently senior vice president and chief marketing officer at ADT.
PetSmart has appointed Joshua Kanter as executive vice president, marketing & customer experience. Kanter is responsible for brand marketing, digital, media and creative to deliver a best-in-class customer experience. He was most recently senior vice president, marketing strategy, at Viking Cruises.
Swanson Health Products has appointed Corey Bergstrom as
Tailored Brands has appointed Frank Hamlin as executive vice president and chief marketing officer. Hamlin was most recently chief marketing officer at GameStop.
Total Wine & More has appointed Keith Colbourn as executive vice president, chief marketing officer. Colbourn was most recently senior vice president, loyalty & lifecycle marketing, at Target.
UGG has appointed Ian Stewart as vice president, marketing. Stewart was previously vice president, global marketing, at Converse.
Under Armour saw the departure of its chief marketing officer, Andy Donkin.
Victoria's Secret has appointed Jann Parish as
CONSUMER DIGITAL AND MEDIA
ABC Entertainment has appointed Rebecca Daugherty as executive vice president, marketing. Daugherty is responsible for all marketing, strategic planning and creative development. She was most recently vice president, marketing – Dramas, Movies & Specials, at the company.
Airbnb saw the departure of its chief marketing officer, Jonathan Mildenhall.
Amazon has appointed Neil Lindsay as vice president, worldwide marketing. Lindsay was most recently vice president, Amazon Devices, at the company.
Ancestry has appointed Caroline Sheu as senior vice president, U.S. marketing. Sheu is responsible for marketing and brand experience, including brand, performance, creative, product marketing and marketing analytics. She was most recently vice president, global digital & customer marketing, at Gap Inc.
Audible has appointed TJ Huttner as senior vice president, global marketing. Huttner was most recently senior vice president, marketing – US, at the company.
BARK has appointed Jay Livingston as
Blink Health has appointed Robert Birge as
Brooklyn Sports & Entertainment has appointed Elizabeth Brooks as chief marketing officer. Brooks is responsible for all the marketing efforts including branding, advertising, merchandising, creative, digital and in-game presentation. She was most recently chief marketing officer and executive-in-residence at Sopris Capital Associates.
Everything But The House has appointed Adam Weber as
FCB Global has appointed Jennifer Hohman as
FTD Companies has appointed Jeff Severts as executive vice president, strategy
Helix has appointed Deena Bahri as
Hulu has appointed Kelly Campbell as chief marketing officer. Campbell is responsible for brand marketing, performance marketing, media, content marketing, creative, public relations and consumer research. She was most recently senior director, global growth marketing – Google Cloud, at Google.
IMAX Corporation has appointed JL Pomeroy as
Meredith Corporation has appointed Alysia Borsa as chief marketing & data officer. Borsa is responsible for corporate marketing strategy, integrated marketing communications, first-party data strategy and management, and consumer- and advertiser-focused insights and analytics across all national media channels. She was most recently executive vice president, chief data & insights officer, at the company.
OfferPad has appointed Darrin Shamo as
Pandora Media has appointed Aimée Lapic as chief marketing officer. Lapic is responsible for the consumer brand strategy, market positioning, performance-based and partnership marketing through digital, social and mobile marketing initiatives. She was most recently chief marketing officer, Banana Republic and general manager, BananaRepublic.com, at Gap Inc.
Universal Music Group has appointed Scott Greer as executive vice president, marketing & commerce – Def Jam Recordings. Greer is responsible for the marketing, digital, commerce, branding and creative content initiatives. He was most recently executive vice president at Capitol Music Group.
The Vegas Golden Knights has appointed Brian Killingsworth as chief marketing officer. Killingsworth is responsible for marketing and assisting majority owner Bill Foley in some of his other business ventures, including cross- promoting Foley's domestic wineries and his Rock Creek resort properties. He was most recently chief marketing officer at the Tampa Bay Buccaneers.
Walt Disney has appointed Vicky Free as senior vice president, marketing – Disney/ABC Home Entertainment and Television Distribution. Free is responsible for in-home creative strategy, digital marketing and customer relationship management for all theatrical releases, as well as leading marketing strategy and execution for first-run and
Warby Parker has appointed Lori Krauss as
WeWork has appointed Julie Rice as
YouTube has appointed Tom Blessington as vice president, brand, media & experiences. Blessington is responsible for brand strategy and integrated marketing campaigns. He was most recently managing director, PDX (Portland), at Wieden+Kennedy.
CONSUMER PACKAGED GOODS (CPG)
Cambria Company has appointed Brian Peters as
Dunkin Brands has appointed Tony Weisman as
Ember Technologies has appointed Tom Johnstone as
E&J Gallo Winery has appointed Maud Pansing as vice president, marketing – Luxury & Premium Brands. Pansing was most recently senior vice president, global marketing, at Shiseido Americas.
Flower Foods has appointed Debo Mukherjee as chief marketing officer. Mukherjee is responsible for marketing and branding initiatives and product innovation. He was most recently chief executive officer at Redco Foods.
Impossible Foods has appointed Tara Kriese as senior vice president, marketing. Kriese was most recently chief marketing officer at Thalmic Labs.
Jacuzzi Group Worldwide has appointed Ed Sofia as senior vice president, marketing. Sofia was most recently vice president, marketing, at Evenflo.
Milk Makeup has appointed Nicole Frusci as
OceanSpray has appointed Bobby Chacko as senior vice president, chief global growth officer. Chacko is responsible for global marketing, insights
Pabst Brewing Company has appointed Matt Bruhn as
Post Holdings has appointed Roxanne Bernstein as
Rodan + Fields has appointed Elisabeth Charles as chief marketing officer. Charles is responsible for spearheading consumer engagement, marketing for product launches and global campaigns, and driving the digital marketing strategy. She was most recently senior vice president and general manager, Old Navy Outlets, at Gap Inc.
Spindrift Beverage Company has appointed Caroline Kibler as senior vice president, marketing. Kibler was most recently senior director, Smartwater, at Coca-Cola.
TOMY International has appointed Vincent D'Alleva as chief brand officer. D'Alleva is responsible for the brand, product and consumer marketing strategies for the Toddler and Preschool businesses. He was most recently chief marketing officer at Mattel.
Toyo Tires USA has appointed Tim Chaney as vice president, marketing. Chaney is responsible for marketing efforts in the US, including
Tyson Foods has appointed Eric Schwartz as senior vice president, chief marketing officer and general manager, Poultry. Schwartz was most recently senior vice president and general manager, Breakfast, Tyson Brands & Retail Packaged Brands, at the company.
Unifi Manufacturing has appointed Richard Gerstein as chief marketing officer and executive vice president, Global Branded Premium Value-added Products. Gerstein was most recently chief customer officer at Motista.
World Kitchen has appointed MaryKay Kopf as
Yokohama Tire Corporation has appointed Andrew Briggs as vice president, marketing & product management. Briggs was most recently senior director, strategic planning & sales operations, at the company.
LEISURE AND HOSPITALITY
Arby's Restaurant Group has appointed Jim Taylor as chief marketing officer. Taylor is responsible for research & development, new product innovation, brand marketing & positioning, advertising and media planning. He was most recently senior vice president, marketing, at the company.
Blaze Pizza has appointed Shivram Vaideeswaran as chief marketing officer. Vaideeswaran is responsible for "defining the brand voice," as well as innovation & product strategies and digital & loyalty platforms. He was previously head of global marketing at Taco Bell.
Bluegreen Vacations has appointed Famous Rhodes as executive vice president, chief marketing officer. Rhodes is responsible for the marketing and branding elements, including digital marketing, social media, public relations and product development. He was most recently vice president, digital marketing & customer experience, at AutoNation.
Caesars Entertainment has appointed Chris Holdren as
Carlson Rezidor Hotel Group has appointed Charles McKee as chief commercial officer, Americas. McKee is responsible for fully integrating the marketing, branding, development, commercial & operations strategies and initiatives. He was most recently head of marketing at Malaysia Airlines.
Corner Bakery Cafe has appointed Donna Josephson as senior vice president and chief marketing officer. Josephson was most recently chief marketing officer at Fazoli's.
Del Frisco's Restaurant Group saw the departure of its chief marketing officer, Brandon Coleman III.
Del Taco Restaurants has appointed Barry Westrum as
Domino's Pizza has appointed Art D'Elia as senior vice president, chief brand & innovation officer. D'Elia was most recently marketing Director, Danone Dairy – UK, Belgium, Netherlands, Ireland & Luxembourg, at Danone.
Edible Arrangments has appointed Kaitlin Reiss as
Equinox Fitness Clubs has appointed Vimla Black Gupta as
Foxwoods Resort Casino has appointed Suzanne Trout as chief marketing officer. Trout is responsible for all facets of marketing including player development, international marketing, loyalty marketing, entertainment, brand & advertising and public relations. She was most recently senior vice president, marketing & advertising, at Eldorado Resorts.
Hertz has appointed Jodi Allen as executive vice president and chief marketing officer. Allen was most recently vice president and general manager, North American Hair Care, at Procter & Gamble.
Hilton has appointed Kellyn Smith Kenny as
IHOP Restaurants has appointed Brad Haley as senior vice president and chief marketing officer. Haley is responsible for marketing and culinary strategies. He was most recently chief marketing officer at CKE Restaurants.
InterContinental Hotels Group has appointed Claire Bennett as chief marketing officer. Bennett is responsible for all aspects of brands, loyalty, partnerships and marketing execution. She was most recently executive vice president and general manager, Travel & Lifestyle Services, at American Express.
Jamba has appointed Claudia Schaefer as chief marketing officer. Schaefer is responsible for global marketing, consumer insights, public relations, product innovation and research & development. She was most recently chief marketing officer at Cheddar's Scratch Kitchen.
Jimmy John's has appointed John Shea as
KFC has appointed Andrea Zahumensky as chief marketing officer, U.S. Zahumensky is responsible for marketing, advertising, media, consumer insights and digital. She was most recently brand director, Baby Care – North America, at the company.
MOD Pizza has appointed Tracy Cioffi as chief marketing officer. Cioffi is responsible for marketing strategy, including brand marketing, design, customer insights, local store marketing, digital marketing and communications. She was most recently senior vice president, marketing & digital, at Sur La Table.
Red Robin has appointed Dana Benfield as senior vice president and chief marketing officer. Benfield is responsible for leading marketing and guest engagement teams, as well as food & beverage and commercialization initiatives.
She was most recently vice president, marketing & menu innovation, at the company.
Retro Fitness has appointed Scott Breault as
Scientific Games has appointed Shawn Dennis as executive vice president and chief marketing officer. Dennis is responsible for elevating global leadership brand position, promoting integrated brands and increasing engagement with customers and players for innovative content and technology in gaming, interactive and lottery. She was most recently executive vice president, head of brand and franchise development, at DreamWorks Animation.
Sonic Corporation has appointed Jose Dueñas as chief brand officer. Dueñas is responsible for the end-to-end customer experience including marketing and culinary innovation, digital strategy, co