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UK – British CEOs are more international and younger

07 October 2015

British FTSE 100 CEOs come from a wider range of nationalities and have notched up more international experience compared to their counterparts in other leading economies, according to research from executive search firm Heidrick & Struggles.

The study analysed the main characteristics of CEOs of the largest public companies in the UK (FTSE 100), the US (the first 100 companies in the Fortune 500), France (SBF 120) and Germany (DAX 30 and MDAX 50).

Britain led the way when it came to CEOs with substantial international experience. Four-out-of-10 (41%) FTSE 100 CEOs have international experience (defined as having spent at least five years abroad) and the average time they have spent abroad is 15 years.

This is double the figure of US Fortune 100 companies, where only 19% of CEOs have international experience and the average time spent overseas is 11 years. Around a third of French and German CEOs have international experience, 31% and 33% respectively, with an average of 12 years spent abroad.

The findings also highlight that more than a third (35%) of FTSE 100 CEOs are foreign nationals. These CEOs are mostly European (predominately French and Dutch) or from the Commonwealth (South-Africa, Australia, New Zealand, Canada, USA). In contrast, the figure for foreign nationals in the Fortune 100 is only 7%, just shy of the 8% for French CEOs. In Germany, 17% of DAX 30 and MDAX 50 CEOs are foreign.

Luis Urbano, Heidrick and Struggles' Managing Partner, Europe and Africa, said: "The cross-cultural intelligence that comes with international diversity is increasingly important for companies operating in today's volatile and fast-moving global business environment."

Other key findings from the report show:

Female CEOs remain rare. France and Germany still lack gender diversity. This year's survey marks the first time any French or German CEOs have been female (2% and 1% respectively). The UK fares better with five female CEOs in the FTSE 100. However, the US leads the way with nine women at the helm of Fortune 100 companies, a four-fold increase since 2007 when the figure was only two.

Oxbridge is still important. A quarter (24%) of UK FTSE CEOs graduated from Oxford or Cambridge, highlighting the importance of an Oxbridge qualification in the route to the top. However, the proportion of UK CEOs without post-graduate degrees is the lowest of the four countries (35%), compared to 27% in the US and 15% in Germany.

In France, having a post-graduate qualification is almost mandatory, with 92% of CEOs holding an advanced degree. Educational elitism is also very pronounced in France, where half of CEOs graduated from one of four ‘Grandes Ecoles’.

British boards buy into digital know-how. As digital strategy becomes increasingly important, more CEOs are being appointed with a sales and marketing background (21% of FTSE 100). This figure is 41% in the consumer sector and 40% in life sciences and healthcare. In Germany, France, and the US the proportion of CEOs with sales and marketing backgrounds is only 12%, 10% and 10% respectively.

CEOs in the UK are younger than their counterparts in the USA, France, and Germany, averaging 54 years old as opposed to 59 in the US. French and Germans CEOs are on average 56 years old. While CEO tenure across the four countries ranges from five to eight years, 57% of FTSE 100 CEOs have not been in their current positions for longer than four years.