Thursday, July 31, 2014

CEO Tenure in Korea

I often share that non-family Korea CEO tenure being considerably less than their overseas operations.

By comparison internationally the non-Korean CEOs tend to stay in the job lots longer ... and a more performance based model.

Of course, the organizational dynamics in Korea with everyone in the ranks ever-moving upward forces those at the top out to make room for the next generation.

This excerpt notes CEO tenure at many of the top Korean Groups.

SEOUL, July 30 (Yonhap) -- The average term in office of South Korean CEOs is 2.63 years, shorter than the minimum three years endorsed by the country's commercial law, a finding by a local corporate research firm showed Wednesday.

The report was compiled by tracking the tenures of 576 CEOs at listed companies belonging to the country's 30 largest conglomerates from 2000 onwards, CEO Score said. The results exclude chief executives who actually run the conglomerate or are family members of these tycoons.

The data showed that 367, or 63.7 percent of the total, stepped down in less than three years, with 102, or 17.7 percent, staying on for less than a year.

CEOs at Hyosung Group had the shortest term, 17 of them staying on the job for an average of 1.7 years during the measured period.

Mirae Asset and CJ had 1.79 and 1.97 years, each.

Others such as Kolon, Hyundai, KT, GS, POSCO, Doosan, Kumho Asiana and Dongbu had CEOs staying for less than 2.6 years on average


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