While the majority of CEO changes were planned events in 2011, there were twice as many planned successions as there were forced changes in leadership (8% versus 4%).
Disagreements in strategy between directors and management gave rise to an increase in forced succession, such as at NH Hoteles and Accor.
The study also reveals a change in the typical profile of a hotel company CEO due to the influx of
Chinese companies into the top 50 largest hotel companies. Leaders of these companies tend to be younger that their Western counterparts and are typically first-time CEOs groomed into the role by the chairman or previous CEO.
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The average age of an incumbent hotel company CEO is 52, with the majority of CEOs in Europe and North America in their early 50s.
The number of Chinese hotel companies in the study caused the average age of a CEO in Asia drop from 56 in 2007 to 46, with incoming CEOs being an average of 44 years old. European and North American CEOs are six years older on their date of appointment.
As the Chinese market matures and the talent pool grows bigger the average age of a CEO across the study is expected to rise accordingly, and the CEO profiles begin to more closely mirror those of Europe and North America.
At the same time, as North American companies further increase their global reach more ‘global
citizens’ are likely to occupy the top seats. This in turn may see a reintroduction of CEOs from other sectors with experience of growing international brands.
The study also reveals that CEOs of privately owned companies tend to be younger than those of publicly listed companies at 46 years old, compared with 51.
* The study included data from the 50 largest hotel companies as published by HOTELS Magazine in September 2011.
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