Market Update

Despite some economic challenges, a number of our key industry verticals remain very eager to secure capable executive-level talent and CEO’s. The primary skill that is in demand is for those with an ability to build strategy to grow revenue and profit with as little risk as possible.

We are currently supporting a number of organisations as they build succession plans for their future business leadership and are in market for CEO’s across industries such as technology services, construction materials, logistics and professional services.

We have found that churn remains higher than normal with increased scrutiny for poor financial results. Alternatively for organisations that have weathered economic challenges and taken market share, they may need new leadership as a result of growth.

Remuneration Trends

Fixed remuneration for Chief Executives has not changed materially for many years but the mix of overall remuneration has changed. We have recently seen the pleasing trend that many organisations are eager to be more transparent in the way they remunerate their Chief Executive, providing a clearer scorecard with perhaps uncapped earnings to incentivise key performance indicators.

Furthermore, in addition to short term incentives companies appear to be more eager to provide equity and ownership participation schemes for their executives to incentivise longer-term and strategic decision making, rather than quarter on quarter performance.

In summary, fixed remuneration for CEO’s has remained stable but the total ‘on target earnings’ of CEO’s has seen a slight step forward for those businesses that have been able to over-achieve in their industry sector.

Team Structures

As a result of recent ‘cost out’ transformations of many organisations, generally CEO’s have fewer resources around them to deliver on key objectives. Therefore this has led to a slightly more ‘hands-on’ style of leadership requiring CEO’s to ‘zoom in and out’ of parts of the business to solve operational issues but still keep focused on long term objectives simultaneously. In some instances, organisations have brought in more generalist leadership in finance, HR, operations and technology so that CEO’s can be better informed by their reports about where they should spend their time.

Skills in Demand

It is clear the role of the CEO continues to evolve, tracking business priorities that are reflecting the economic environment. Now more than ever we are noticing a focus on financial, sales and strategy acumen as key skillsets.

Candidate Availability

In FY2025 we have seen a shift in what is required of a CEO which seems to reflect the economy’s demands. Capital markets have slowed leading to less growth and merger & acquisition activity, shifting the types of CEO’s in demand. We are seeing more interest in those that can grow top and bottom-line results in a more traditional and risk-considered way without adding too much cost. Gone are the days of the overly entrepreneurial and unrealistically ambitious CEO’s because the downsides of making incorrect decisions are too significant in this current economic climate.

In summary, financially astute and commercially focused CEO’s are in high demand but those that can balance these capabilities are rare and not as easy to access.

Elliot Long
Chief Executive Officers

Market Update

The demand for executive talent is increasing across industries, reflecting a competitive landscape for senior roles. There is positive growth in the commercial property and technology sectors, leading to active searches for key roles. Mid-sized clients are heavily investing in systems, technology, and workforce to gain market share against larger competitors. Despite a slight dip in consumer sentiment, stable market conditions support growth-oriented strategies. The candidate market is highly competitive due to lower unemployment rates and high demand for exceptional talent.

The executive search market is experiencing significant activity driven by several key factors. New market entrants are establishing new functions, creating demand for fresh executive roles. Internally, businesses are undertaking significant projects, necessitating the backfilling of key positions. Additionally, there is natural churn in the job market as long-term professionals seek new opportunities with the approaching financial year. The commercial sector, in particular, is demonstrating impressive resilience and adaptability, with a surge in demand for top talent across various industries. This momentum reflects growing confidence in the market’s stability and future prospects.

Remuneration Trends

In response to the challenging economic landscape, businesses are demonstrating a heightened willingness to motivate success by incorporating ‘at-risk’ elements into compensation structures, such as long and short-term incentives. Notably, these incentive schemes have evolved towards greater transparency, featuring objective scorecards that assess a blend of both business and individual achievements. While this practice is familiar to Commercial Leaders, it is essential to acknowledge that it often entails a reduction in the base salary component.

In the current climate, Commercial Leaders are increasingly inclined to negotiate higher remuneration, recognising the high demand for their leadership skills and their pivotal role in driving business performance. Seasoned executives, having accumulated substantial industry experience, are showing a growing inclination to transition to different sectors.

Furthermore, individuals with a background in larger corporations are now more receptive to embracing risk, considering opportunities in smaller companies with the expectation of qualifying for enhanced long-term incentives. This strategic shift reflects a broader trend among executives seeking new challenges and rewards in the evolving professional landscape.

Team Structures

Team structures across various functions are evolving to meet the demands of a growing and innovative market, particularly in the commercial property and technology sectors, leading to potential expansions in team sizes. The focus is on enhancing the skills and capabilities of sales teams, reflecting the strategic importance of these functions. The increased prominence of Chief Growth Officer (CGO) roles is notable, with CGOs playing a crucial part in driving revenue growth, understanding market opportunities, and leading cross-functional teams. Key skills for CGOs include a visionary outlook, financial literacy, collaboration, change management, and industry-specific knowledge, with sectors like electric vehicles, hospitality, manufacturing, engineering, construction, oil, real estate, and banking actively hiring CGOs.

The role of Chief Commercial Officers (CCOs) is also evolving, with increased collaboration with CMOs in order to drive company revenue, building brands, and managing vast data and IT infrastructure. Strategic thinking, data analysis, digital marketing proficiency, and leadership are key skills and qualifications for leaders, who must also focus on creating seamless omnichannel experiences and leveraging new technologies like generative AI. Future trends indicate that generative AI will disrupt marketing functions, and lead generation tactics. This indicates an important opportunity and need for teams to upskill.

Skills in Demand

The rising importance of social skills in C-suite roles is evident as companies now prioritise these abilities over traditional operational expertise. High self-awareness, effective communication, empathy, and the capacity to work with diverse groups are key social skills that are becoming essential. However, assessing these skills presents challenges, necessitating new tools and approaches such as psychometric assessments and simulation exercises.

In terms of industry trends, sectors like financial services, distribution, digital media, MedTech, and professional services remain robust, while retail and large consumer tech are experiencing quieter periods due to the RBA’s impact on consumer confidence. Currently, there is a high demand for skills related to strategic growth and technological advancement. This demand underscores a shift towards positions that drive growth and innovation within organisations. Experience and industry knowledge, especially in the commercial property and technology sectors, are highly valued, as they are crucial for navigating competitive landscapes and implementing growth-oriented strategies.

Candidate Availability

As is consistent with the market, high level executive candidates that possess incredible leadership abilities with a robust commercial acumen are difficult to source. Now that they are significantly in demand due to the changing nature of the market it is imperative that organisations are working to showcase the value of the opportunities they have available. Due to an increase in demand we are seeing that candidates are open to a lot of opportunities in faster than normal processes in what is a candidate short environment.

Alexandra Mitcherson               William Lukabyo
Chief Commercial Officers        Chief Commercial Officers

Market Update

Mirroring the demands of the current economic landscape, most businesses have been through a significant exercise of ‘cost out’. Large organisations are revaluing their business units and returning to core operations to ensure they have an eye on cash flow and can weather this current period before rebounding when the economy returns to growth. Of course, the key advisor to this strategy is the CFO and their ability to look at data and make decisions has been critical.

We have seen slightly less CFO movement in FY24 than in prior years, this may be as a result of the value in their insights as a partner to the CEO. Median tenures of CFO’s have stepped up slightly from just 2 years during the pandemic to 2.8 years today.

Remuneration Trends

While CFO salaries in Australia have increased by 10 to 15 per cent in the last couple of years, the slowing market indicates there will be lower increases of up to 5 per cent for senior finance roles in 2024. The earning potential of a CFO depends largely on the size of their organisation. In the year of 2023, Australia’s top 200 company CFOs saw their median salaries spike by 24 percent to A$1.44 million. At the same time, median statutory pay for the top ASX 300 CFOs increased by 9 per cent to $1.14 million. Key financial trends, such as high inflation and rising household costs, may lead many executives to seek new roles in 2024.

Long term incentive plans for CFO’s are changing, with non-financial metrics becoming more prominent. Almost 40% of ASX100 companies include non-financial metrics in their CFO incentive plans and these include environmental, social and governance targets, sustainability targets, diversity and Inclusion measures, and customer and employee satisfaction scores. We are seeing the success of a CFO be measured through a blend of financial metrics, strategic achievements, and leadership effectiveness.

Over recent years we have seen significant salary increases for those finance executives in the mid-market, including increases of up to $20,000 to $40,000. Although more recently these increases have normalised.

Team Structures

In combination with being the advisor to the CEO on returning businesses to their core offerings and managing cost, CFOs are also focussing on being advocates for the attraction and retention of key talent. It has never been more critical to be an inspirational leader to the finance team during a time when the finance team is generally leaner and relied upon for more output and insights.

An ability to utilise technology to augment reporting and insights processes has been critical with many organisations looking to their CFOs for answers on how cost can be saved through the use of advanced systems and AI. This has led to an increased collaboration between the CFO and Chief Technology Officer to work together around common business goals.

The transactional roles within finance teams continue to be automated and offshored, leaving the local finance capabilities to focus on strategy, financial planning and analysis as well as future-focused goal setting and market preparedness.

Skills in Demand

We have seen a significant shift in the required capabilities for CFOs and this is in line with the changing business priorities. In prior years many CFOs were focused on growth plans, mergers and acquisitions, new product or service launches and long-term strategies. This year has seen a refocus on internal considerations including cost and risk management, investor relations and articulating business strategy to external stakeholders. We expect this trend to continue into FY2025.

Candidate Availability

As has always been the case, the very best talent in the finance function continues to remain in high demand and very difficult to source. In FY20204 we found that those‘future-focused’ finance executives, being those with very strong forecasting, data insights and FP&A skills, have tended to be well embedded in their organisations, are less accessible and less willing to move. The key to accessing this talent has been to build a compelling career narrative and provide insights into how they can pave the foundations for their eventual step into the CFO role.

Michael Carlino
Chief Financial Officers

Market Update

As businesses attempt to navigate the current economic environment they have been more willing to incentivise success through the provision of ‘at risk’ components of salary such as long and short term incentives. These schemes have generally become more transparent with an objective scorecard that reflects a combination of business and individual success.

Executives are finishing up their projects and now it is a business as usual situation where they are not finding the work challenging enough. Those who have been working in an industry for a significant amount of time are increasingly motivated to change industries. C-Suite/Lead roles specifically in cybersecurity this year involve the building of teams which have not existed in the past or continue to build on existing teams as the risk of cybersecurity attacks increases by the minute.

Team Structures

As restructuring is occuring, many teams are becoming leaner and this is often motivated by cost cutting. This trend is apparent in organisations of various sizes. We have spoken with global companies in various sectors about this with one global healthcare company indicating their technology team was made up of under 10 people.

The blurring of lines between CIO and CTO positions are becoming more and more apparent. In the past, part of a CTOs remit has included covering part of the cybersecurity capability. Now, organisations are hiring dedicated cybersecurity specialists to cover the entire capability. Some organisations have created cybersecurity capabilities that are broken up into parts such as incident response, resilience and governance.

Blurring of lines between title use is becoming more prevalent. For example, CTO and CIO responsibilities have shifted (e.g. now companies want executives who can undertake both inward and outward facing responsibilities). Also, certain companies will have different titles for those who are at the top leadership positions such as Principals and Managing Directors.

Skills in Demand

Executives who have in-depth insight and skills in cybersecurity and artificial intelligence are highly sought after. Regarding industry, some organisations still want their leadership teams to be made up of executives coming from the same industry. However, most of our clients have an industry agnostic and function first view when bringing executives onto their leadership team.

Candidate Availability

Due to the candidate heavy market, candidates of all levels are available. Additionally, diversity is becoming even more of a focus for companies and they are ensuring that this is something that is adhered to. As such, we can provide a variety of talent to meet client needs.

Amaraj Bansal
Chief Digital & Technology Officers

Market Update

In the current economic climate a lot of sectors are focused on doing more with less; whether optimising performance of their workforce, downsizing or reducing cost, or looking to their leaders to drive engagement and productivity.

Talent assessment and identification – Organisations are ensuring they are clear on the behavioural capabilities needed to deliver competitive advantage, and putting in place robust and objective assessment processes to identify key talent.

Organisational design – Many companies are reviewing their organisational structures to ensure resources are effectively deployed and costs minimised. This is tending to lead to more centralised structures with a focus on standardisation and reduced duplication, rather than devolved authority and empowerment of local managers.

Leadership development – Fewer clients are designing large cohort-based leadership programs, with more interest in structured activity to build specific leadership capabilities, either with intact teams or individually through executive coaching.

Team Structures

Agile continues to gain traction with more and more organisations incorporating agile elements into their organisational structures.

Squads, tribes and chapters are increasingly common, with team and organisational structures shifting. Interestingly, while the language used often reflects agile principles, the structures and working practices are less different.

Elsewhere, the shift to skills-based operating models continues to gain lots of attention. Again though, it’s worth separating the noise from the reality; what many organisations are claiming as a transformational shift in thinking is often little more than a – very sensible – focus on defining, building and measuring relevant skills and capabilities.

Leadership Skills in Demand

Whether we call it “adaptive leadership”, “learning agility” or something else, the focus for some time has been on building small “A” agility as a key leadership capability. In simple terms, helping leaders know the questions rather than the answers will equip them to lead their organisations and teams through uncertain and fast-moving change.

Closely linked to this, we are of course seeing organisations wrestling with how to take advantage of AI and other technology advances; huge potential but still relatively untested, and while it’s a frequent conversation topic, there are few organisations yet to operationalise the technology in any meaningful or measurable way.

Key & Interesting Projects

Top team effectiveness – We have been working with the leadership team of a large government department to help them define how best to work together, lead their teams, and the department overall. This includes some individual and team assessment, executive coaching and also support onboarding new team members.

Strategy reset – Working with a large healthcare provider to onboard two acquired companies, we’re co-designing and delivering a series of strategy workshops. These are intended to help align leaders on the post-acquisition priorities and also to agree the leadership behaviours that will be key to a successful integration.

Executive coaching – At the heart of what we have done for some time, we continue to provide individual and team coaching to a series of C-suite leaders and their teams, helping define and tackle issues such as team purpose and performance, and at an individual level to set leaders up for future success in the long term.

Murray Priestman
Talent Consulting Associate