MARKET TRENDS & INSIGHTS
How can CEO’s Navigate Market Shifts and Seize Leadership Opportunities?
8th August, 2024 | 5 min read
Elliot Long
In 2024, the executive search landscape is dynamic, presenting both challenges and opportunities for Chief Commercial Officers. Key industries are actively seeking executive talent, particularly CEOs who can drive revenue growth with minimal risk. While fixed remuneration for CEOs remains stable, the mix of incentives is evolving towards greater transparency and long-term strategic rewards.
Team structures are shifting, requiring more hands-on leadership and collaboration with generalist roles. Financial, sales, and strategic acumen are now critical skills for CEOs. As the economy demands more traditional, risk-considered growth strategies, the search for financially astute and commercially focused leaders intensifies. This article explores these trends and provides insights to help organizations navigate this competitive market.
MARKET UPDATE
The Demand for Strategic Executive Talent
Despite economic challenges, many key industries remain eager to secure capable executive-level talent, particularly CEOs. The primary skill in demand is the ability to build strategies to grow revenue and profit with minimal risk. Our firm is currently supporting several organizations as they develop succession plans for future business leadership, with active searches for CEOs in technology services, construction materials, logistics, and professional services sectors.
Churn in the executive market remains higher than usual. Increased scrutiny for poor financial results is a significant factor driving this trend. Conversely, organizations that have successfully weathered economic challenges and gained market share may require new leadership to manage their growth effectively.
SALARY AND REMUNERATION TRENDS
Transparency and Long-Term Incentives on the Rise
Fixed remuneration for Chief Executives has remained relatively unchanged for many years. However, the overall remuneration mix has evolved. Many organizations are now more transparent in how they compensate their CEOs, offering clearer scorecards with potentially uncapped earnings tied to key performance indicators. In addition to short-term incentives, there is a growing trend towards providing equity and ownership participation schemes. These schemes aim to incentivize long-term strategic decision-making rather than focusing solely on quarterly performance.
Overall, while fixed salaries for CEOs have remained stable, total ‘on target earnings’ have seen a slight increase for those who have outperformed in their sectors.
EVOLVING TEAM SRUCTURES
More Hands-On Leadership Required
Recent cost-cutting transformations have led to CEOs having fewer resources to deliver key objectives. This has resulted in a more ‘hands-on’ leadership style, requiring CEOs to ‘zoom in and out’ of different business areas to address operational issues while maintaining a focus on long-term goals. In some cases, organizations have brought in more generalist leadership in finance, HR, operations, and technology to better inform CEOs on where to allocate their time and efforts.
SKILLS IN DEMAND
Financial, Sales, and Strategic Acumen
The role of the CEO continues to evolve in response to shifting business priorities and the economic environment. There is a growing emphasis on financial, sales, and strategic acumen as key skillsets. CEOs are now expected to possess a robust understanding of these areas to navigate their organizations through complex market conditions.
CANDIDATE AVAILABLITY
Finding Financially Astute and Commercially Focused CEOs
In FY2025, there has been a noticeable shift in the requirements for CEOs, reflecting the demands of the current economy. With capital markets slowing and a reduction in growth and merger & acquisition activity, the focus has shifted towards CEOs who can grow top and bottom-line results in a more traditional, risk-considered manner without incurring excessive costs. The era of overly entrepreneurial and unrealistically ambitious CEOs has waned, as the risks of incorrect decisions are too significant in today’s economic climate.
As a result, there is a high demand for financially astute and commercially focused CEOs who can balance these capabilities. However, such candidates are rare and challenging to find.
