Culture and CEO Tenure: How Culture Can Get You Feted or Fired

The average CEO’s tenure is 8 years but that can differ widely depending on various factors. In this brief we review those factors and particularly the role played by corporate culture. Some CEOs fail because they migrate between sectors with very different cultures. Some cultures simply change CEO more often. Other cultures can impact financial performance which, in turn, impacts CEO survival. Specifically, firms with a ‘Focused’ culture, where there is a clear shared strategic vision and decisions are made and implemented quickly, grow 8% faster than their competitors and benefit from 25% better staff retention.

Culture and CEO Tenure: How Culture Can Get You Feted or Fired