The number of CEOs who have not completed their three-year term was 367, or 63.7 percent.(image:openDemocracy/flickr)
SEOUL, July 31 (Korea Bizwire) – A study said the average tenure of top-30 group CEOs is only 2.6 years. According to CEO Score, a website tracking corporate performances, based on a survey on 576 former professional CEOs except those related with owner families who were hired since January 1, 2000, the average lifespan of these corporate leaders at the post was 2.63 years.
The number of CEOs who have not completed their three-year term was 367, or 63.7 percent. Even those who did not last one year were 102, or 17.7 percent. The company with the longest tenure time was Daewoo Shipbuilding & Marine Engineering with 5.34 years.
The CEOs appointed since 2000 were only two, with their years of service 4.61 years and 6.07 years, respectively. It was then followed by Dongkuk Steel with 3.98 years, LG (3.94 years), OCI (3.74), and Hanjin (3.38).
Former CEOs of other firms such as Shinsegae (3.35), Daelim Industrial (3.24), LS (3.23), Hyundai Department Store (3.22), Hyundai Heavy Industries (3.20), and Daewoo Engineering & Construction (3.09) filled their commercial law-mandated three-year term.
In contrast, the company with the shortest CEO tenure was Hyosung. The average tenure of a total of 17 professional top managers in its five publicly traded affiliates was only 1.70 years.
Other companies such as Mirae Asset and CJ were ranked as some of the shortest CEO tenure time with 1.79 and 1.97 years. Other firms such as Kolon (2.11 years), Hyundai (2.21), KT (2.32), GS (2.38), POSCO (2.46), Doosan (2.49), Kumho Asiana (2.58), and Dongbu (2.58) didn’t surpass the three-year term.
Of the top-five business groups, four conglomerates including Hyundai Motor (2.26 years), Lotte (2.64), Samsung (2.66), and SK (2.76) had less than three years of term. Only LG had the term long than three years (3.94 years).
By Sean Chung (schung10@koreabizwire.com)
