Who Wants To Be A The PBR1000 Company CEO?
By Greyson Gardlik.
The CEO’s of The PBR1000 companies not only have control over their companies, but in today’s ever changing economy, the CEO’s can affect the entire market. This article will provide some observations on CEO longevity based on a compilation by the PBRMarketTools.com Team, focused on The PBR1000, which currently contains key demographic, financial, industry and people data based on 1,078 of the largest publicly traded with principle offices in the US.
Currently there are only 144 of the 1,078 CEOs that were appointed before the year 2000, which means since the millennia 86.6 percent of the companies have had management changes in this new era of business. Already through June of this year there have been 59 new CEO appointments, varying across the many different companies including Walmart(PBR1). Since 2010 almost half of The PBR1000 re-structured their chief management position with 446 new appointments in the past 4.5 years.
By year in descending order here are the current number of CEOs that have been appointed:
- 2014 (through June 30th) Appointed: 59
- 2013: 110
- 2012: 102
- 2011: 96
- 2010: 79
- 2009-2005: 338 (5 years approx. an average of about 68 per year)
- Before 2005: 289
The company with the longest serving CEO in The PBR1000 is the Founder and Chairman/CEO of L Brands(PBR247), Leslie Wexner, who has been serving since 1963, 51 years.Currently in The PBR1000 the median year of CEO appointment sits at 2008 for all of the 1,078 companies we follow, which has shifted one year forward from last year’s median of 2007. We also must keep in mind that 521 CEOs, just under half of the 1,078 companies appointed new CEOs between 2009 and June 2014, which could bump the median by the end of the year to 2009.
When looking at the 100 highest revenue-producing companies, 60 of them have replaced their CEO’s during 2009-2014 (June). When looking at the CEO longevity for the companies who didn’t crack the top 100 but fell between $2 billion and $27 billion in revenues for 2013 the median year was 2008 and the average year they were appointed was about 2006. The companies that did below the $2 billion in revenues were similar to the companies who fell between $2 and $27 billion with a median year of 2008 and the average year appointed of about 2006.
For the 100 most profitable companies the data shows that 50 of them have changed management between 2009 -2014 (June).
The companies that did between $50 million and $2.3 billion in profits had a median CEO appointment of 2008 and an average of 2006.
However the companies who were least profitable of The PBR 1000, companies with profits below $50 million, had a median CEO appointment year of 2010 and an average appointment year of about 2008, which is a full two-year jump compared to the median and mean years compared to the data for revenues.
Here are some examples of industries broken down by median CEO appointment year as well as the average CEO appointments for specific sector. These 15 sectors consist of 339 of The PBR 1000 companies. The information is ordered by SIC numbers, title of sector, number of companies, median CEO appointment year and then average appointment year.
- SIC 1311, Petroleum & Natural Gas: 25 Companies, 2009, and 2006.
- SIC 2834, Pharmaceuticals: 17 Companies, 2010, and 2007.
- SIC 2911, Petroleum Refining: 13 Companies, 2010, and 2007.
- SIC 3310-3357, Steal Manufacturing: 17 Companies, 2007, and 2006
- SIC 3670-3690, Electronic Components: 34 companies, 2008.5, and 2007.
- SIC 3711-3790, Transportation Manufacturing: 41 Companies, 2010, and 2009.
- SIC 4911, Electric Services: 23 Companies, 2010, and 2009
- SIC 5600-5661, Retail (Apparel, Family, Shoes): 22 Companies, 2007.5, and 2004
- SIC 6021, National Banks: 18 Companies, 2009.5, and 2008
- SIC 6200-6282, Investment Services: 27 Companies, 2005, and 2002.
- SIC 6798, Real Estate Investment Trusts: 23 Companies, 2004, and 2003.
- SIC 7011, Hotels/Motels, 12 Companies: 2007, and 2007.
- SIC 7370-7374, Computer Programing/Software: 35 Companies, 2009, and 2007
- SIC 7389, Business Services: 16 companies, 2009, and 2007
- SIC 8050-8090, Hospitals and Healthcare related services: 16 Companies, 2005, and 2004.
Real Estate Investment Trusts, Healthcare and Investment Services are the three sectors that have on average have had their Chief Executives Officers in their positions the longest, which has been about 10-12 years.The top 6 states accounted for 500 of the 1,078 companies and had the following median CEO appointment year, and average CEO appointment year. (State, The PBR1000 company count, median CEO appointment year, and average CEO appointment year):
- California: 115, 2008 and 2006
- Texas: 108, 2009 and 2007
- New York: 101, 2007 and 2005
- Illinois: 66, 2008 and 2007
- Ohio: 58, 2008.5 and 2007
- Pennsylvania: 52, 2010 and 2008
When taking a look at the 1,078 companies CEOs and evaluating the gender breakdown, the numbers show that male CEO’s comprise 95.6% or 1,031 out of all 1,078. The median year that male CEOs were appointed was 2008 and the average year of appointment was about 2006. In 2013 there were 105 male CEO’s appointed and so far in 2014 there have been 56 appointed.The median year that female CEO’s were appointed was 2011 with an average year of appointment of about 2010. In 2013 there were only 6 female CEO’s appointed and so far in 2014 there have only been 3 appointed. This means that the majority of female CEOs are much newer to their positions as Chief Executive Officer than their male counterparts.
More and more companies are changing this key management position in hopes that this strategic decision will help their businesses maintain a competitive advantage in today’s marketplace. Many conclusions can be drawn from the CEO data but you may interpret the data as you see fit. The next report we will provide is an analysis about CEO compensation packages.
More details are available in The PBR1000 Monthly Snapshots which are a series of Microsoft EXCEL worksheets that includes each company’s CEO name, other titles they hold in the company, year and month they became CEO, and a hotlink to a brief biography about them.
(The PBR1000 is the premiere comparative data and reporting service covering over 1,000 of the largest publicly held companies with principle or administration headquarters in the US. These companies generate over $13 trillion in annual worldwide revenues, more than all other companies in the US combined. These are the key drivers in the US and world economies. On a monthly, quarterly, and annual basis several analytical reports in customizable Microsoft Excel format are provided to The PBR1000 subscribers. Users include C-level executives, entrepreneurs, sales/marketing/advertising professionals, investors/investment advisers, business professors/students, career counselors/job seekers, to name just a few. To order your annual subscription, just go to the PBRMarketTools.com Order page.
The author of this post, Greyson Gardlik, is an intern at PBRMarketTools. He is majoring in business economics and entrepreneurship with a minor in environmental science at the highly acclaimed University of Arizona Eller College of Management.)
