‘Better the devil you know’ has been the mantra of company boards over the past year when considering who runs the business. In a world of financial turmoil, the hotel industry has taken a severe battering and terms such as ‘battening down the hatches’, ‘cost containment’, ‘4-day week’, ‘voluntary redundancy’, have entered the common vernacular. At a time when job security has acquired the sepia tone of a relic from the last century and many workers continue to face the very real prospect of losing their jobs, one floor of the organisation appears to have been immune – the C-Suite.
With profits plunging and companies adopting a remorseless focus on creating efficiency, one would have been forgiven for expecting senior leadership to come under the microscope; and for there to be some resultant upheaval. An AETHOS study of CEO turnover at the 50 largest hotel companies in the world reveals however that a change in the company’s Chief Executive declined by over 50% in 2009 from 2008. Furthermore, succession rate in 2009 is the lowest it has been for the past five years.
Our study included data from the 50 largest hotel companies in the world for the years 2005 to 2009. We analysed the profiles and demographics (age, gender, education) of the incumbent Chief Executives in each year as well as those of the incoming and outgoing CEOs in order to identify specific trends which may affect the hotel industry going forward. We also took a look at where CEOs have come from in terms of industry sector, geography, function and position, and also compared results by region of the world and public/private ownership.
Read the complete report here.