c associates volatility report 2019 · crist|kolder associates methodology notes • 2019 fortune...

CRIST KOLDER|ASSOCIATES

CRIST|KOLDER ASSOCIATES

Volatility Report 2019


CRIST|KOLDER Volatility Report

Table of Contents

1

Methodology

Report Highlights Page 5

Locations Page 6

Executive Turnover Page 9

C-Suite Career Paths Page 18

Diversity Landscape Page 39

Educational Background Page 47


The annual Crist|Kolder Volatility Report of America’s Leading Companiesexamines the backgrounds and measures the turnover of C-Suite executives in aportfolio of 670 of America’s leading companies from the Fortune 500 and the S&P500 Indexes.

Crist|Kolder Associates examines each of the portfolio companies individually,noting personnel and organizational changes in the CEO, CFO, and COO roles. Eachexecutive’s background is explored, including the path taken to get to their currentrole: industry background, functional experience, and education. This includesdemographic information such as age, gender, and race.

This is the sixteenth year of the Crist|Kolder Volatility Report, though informationfor the report goes back to 1995. This 2019 release of the Crist|Kolder VolatilityReport contains data through December 31, 2019.

Methodology

2


Methodology Notes• 2019 Fortune 500 and S&P 500 Companies (670 Total)

– Companies Removed from 2019: 49

– Companies Added: 46

– Public Companies: 642

– Private Companies: 28

• Data tracked January 1, 1995 through December 31, 2019

• Industries are broken down by Fortune’s classification system and then grouped into designated larger categories based on SIC codes and judgment of Crist|Kolder Associates

• Resources:• Bloomberg: www.bloomberg.com

• Businessweek: www.businessweek.com

• Capital IQ: www.capitaliq.com

• Fortune: www.fortune.com

• LinkedIn: www.linkedin.com

• SEC Company Filings: www.sec.gov

• Yahoo Finance: www.finance.yahoo.com

• Individual company websites3

Color Key

Blue = CEO

Green = CFO

Purple = COOGraphs and data correspond with the color key above

Financial 19.9%

Industrial15.3%

Services15%

Technology13%

Consumer11.3%

Energy10.8%

Healthcare9.0%

Retail 5.8%

INDUSTRY BREAKDOWN BY COMPANY


Acquisitions: In the event an executive from the acquired company is appointed to a role in the acquiring company, it is an internal change

COO Role: If no individual operates under the title of COO at a given company, description of duties, executive hierarchy, and compensation are simultaneously analyzed to determine if someone with another title fulfills this role

C-Suite: Limited to CEO, CFO, and COO roles

External change: An executive is recruited to a position at a company to which his/her previous position has no formal ties

Internal change: An executive is promoted to a role at the company where he/she is already employed

Mergers: In a merger of equals, the combined company is considered a new entity. A change in leadership, therefore, is marked for all mergers. A change is internal if the executive was previously employed by either of the merging companies

Partial year: Designation indicates data gathered up to August 1, 2019, not a projection

Turnover: The rate at which there is a new hire for a C-Suite position

Volatility: Turnover is noted when the executive starts in the new role (as opposed to the date of announcement)

Definitions

4


Report Highlights

• The rate of companies hiring CFOs externally increased by 31% (Page 13)

• Nearly 70% of today’s CFOs had no public company CFO experience before assuming the role (Page 25)

• The average tenure of a CFO is less than 5 years (Page 27)

• Just over 40% of current CFOs have public accounting experience from the Big 5 (Page 29)

• Nearly half of CFOs who retired in the last year hold a public board seat (Page 32)

• Maturity counts… The age for CEOs and CFOs at the point of hire has increased notably since last year (Page 34)

• There has never been more gender diversity in the C-Suite than there is today (Page 40)

• Ethnic and racial diversity in the CEO chair is at an all time high (Page 43)

• More CEOs and CFOs come from the Big Ten than any other U.S. college conference (Page 48, 50)

• The Big Ten Conference has claimed the most CFOs for 7 consecutive years (Page 50)

5


Locations

6


Company Headquarters by Location

2019 Fortune 500 and S&P 500 (670 Companies)

*White states have no company HQ located

within that state

7

Shade Count


Industry Breakdown by Region2019 Fortune 500 and S&P 500 (670 Companies)

8

Regions: Northeast, Midwest, South, and West as determined by the United States Census Bureau with the addition of foreign countries.

Consumer Energy Financial Healthcare Industrial Retail Services Technology

Midwest 30.3% 16.4% 25.4% 18.0% 37.9% 28.2% 16.2% 5.6%

Northeast 30.3% 12.3% 35.1% 39.3% 24.3% 15.4% 25.3% 20.0%

South 18.4% 58.9% 19.4% 13.1% 25.2% 35.9% 37.4% 21.1%

West 18.4% 11.0% 17.9% 24.6% 6.8% 20.5% 18.2% 48.9%

Foreign 2.6% 1.4% 2.2% 4.9% 5.8% 0.0% 3.0% 4.4%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

Midwest

Northeast

South

West

Foreign


Executive Turnover

9


The Financial sector accounts for the most CEO turnover

CEO Volatility by Industry2019 Fortune 500 and S&P 500 (670 Companies)

10

Notable CEO changes in 2019

• Alphabet Inc.• Accenture PLC• Best Buy Inc.• Boeing Company • HP Inc.• Pfizer Inc.• Wells Fargo & Company

17.0% Financial

13.6% Industrial

9.1% Retail

10.2% Energy

11.4% Healthcare 13.6% Technology

12.8% Consumer

9.1% Services


The Financial sector accounts for the most CFO turnover

CFO Volatility by Industry2019 Fortune 500 and S&P 500 (670 Companies)

11

Notable CFO changes in 2019

• Cardinal Health Inc.• The Coca-Cola Company• The Hershey Company• Intel Corporation• J.P. Morgan Chase & Co.• Kraft Heinz Company• Lockheed Martin Corporation • United Parcel Service Inc.• Tesla Inc.

18.6% Financial

17.8% Industrial

8.5% Energy

8.5% Retail

9.3% Technology

17.8% Services 10.9% Consumer

8.5% Healthcare


The Services sector accounts for the most COO turnover

COO Volatility by Industry2019 Fortune 500 and S&P 500 (670 Companies)

12

Notable COO changes in 2019

• The Coca-Cola Company• Dell Technologies Inc.• FedEx Corporation• New York Life Insurance Co.• Union Pacific Corporation• Waste Management Inc.• Wells Fargo & Company

20.7% Services

19.5% Industrial

10.3% Energy

6.9% Retail

10.3% Technology

14.9% Financial

10.3% Consumer 6.9% Healthcare


1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

CEO 9.5% 20.0% 18.5% 13.4% 20.3% 19.8% 23.4% 17.5% 21.1% 23.0% 24.4% 25.8% 16.9% 32.5% 25.9% 19.6% 27.6% 25.4% 25.3% 18.2% 16.5% 12.0% 28.6% 25.5% 30.7%

CFO 44.8% 37.1% 39.3% 33.3% 37.5% 43.6% 31.8% 58.0% 34.7% 34.9% 39.4% 45.9% 40.9% 41.9% 40.7% 24.1% 35.1% 38.7% 34.5% 40.2% 36.1% 36.4% 43.4% 30.1% 39.5%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

The rate of external hiring for both CEOs and CFOs has increased since last year

Percentage of CEOs/CFOs Recruited from Outside the Company (1995-2019)2019 Fortune 500 and S&P 500 Companies (670 Companies; 677 Sitting CEOs; 667 Sitting CFOs)

13

CEO Historical Average: 21.7%

CFO Historical Average: 38.5%


There has been a downward trend in the number of companies that have a sitting COO

Percentage of Companies with a COO (2000-2019)2019 Fortune 500 and S&P 500 (670 Companies; 234 Sitting COOs)

14

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

% with COO 48.0% 44.7% 45.5% 44.9% 44.4% 43.9% 43.8% 46.0% 44.3% 42.2% 41.6% 41.5% 39.6% 36.3% 36.0% 33.6% 35.3% 32.9% 31.9% 34.9%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%


The Healthcare sector has the lowest percentage of COOs

Percentage of Companies with a COO by Industry2019 Fortune 500 and S&P 500 Companies (670 Companies; 234 Sitting COOs)

15

Financial Energy Services Retail Consumer Technology Industrial Healthcare

% with COO 44.3% 38.4% 37.4% 33.3% 32.0% 27.8% 26.5% 25.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%


0

500

1000

1500

2000

2500

3000

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

22.0%

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

S&

P 5

00 A

VG

. Clo

se P

rice

($)

Per

cen

t T

urn

ov

er (

%)

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

CEO/CFO/COO 11.6% 12.2% 15.8% 14.8% 16.6% 17.2% 14.4% 13.1% 11.9% 14.6% 15.9% 15.1% 14.9% 15.8% 12.5% 11.9% 13.5% 12.5% 14.9% 13.9% 14.9% 16.2% 15.5% 17.5% 19.2%

S&P 500 Index 542 671 873 1084 1326 1427 1102 996 964 1131 1207 1311 1477 1221 947 1139 1269 1380 1643 1931 2061 2092 2448 2752 2805

CEO/CFO/COO S&P 500 Index

CEO/CFO/COO Historical Average: 14.7%

C-Suite turnover has increased from last year

Overall Volatility and S&P 500 Index (1995-2019)2019 Fortune 500 and S&P 500 (670 Companies)

16


COO turnover continues to meaningfully increase

CEO/CFO/COO Volatility (1995-2019)2019 Fortune 500 and S&P 500 Companies (670 Companies; 677 Sitting CEOs; 667 Sitting CFOs; 234 Sitting COOs)

17

CEO Historical Average: 11.2%

COO Historical Average: 22.4%

CFO Historical Average: 15.3%

Historical Turnover Average

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

CEO 8.1% 10.4% 11.9% 11.9% 12.0% 14.7% 12.9% 10.4% 9.3% 11.9% 14.1% 9.6% 10.0% 11.8% 8.8% 8.5% 11.5% 9.5% 11.8% 9.9% 11.8% 12.3% 10.3% 13.8% 13.0%

CFO 13.5% 12.4% 16.2% 15.8% 17.5% 17.9% 15.3% 13.8% 12.1% 14.3% 16.0% 17.2% 17.3% 18.3% 13.4% 12.3% 11.8% 11.4% 17.1% 15.4% 14.8% 17.7% 15.8% 16.8% 19.3%

COO 16.1% 16.6% 24.7% 19.7% 25.6% 21.3% 16.1% 18.1% 17.8% 22.0% 20.4% 24.2% 21.6% 19.9% 19.8% 19.8% 23.1% 22.8% 17.6% 20.8% 23.9% 23.3% 30.4% 31.3% 37.2%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

% T

urn

ov

ers


C-Suite Career Paths

18


Nearly 50% of CEOs come from either a COO or Divisional President role

Immediate Previous Position of Sitting CEOs (Internal or External)2019 Fortune 500 and S&P 500 (670 Companies; 677 Sitting CEOs)

19• Divisional President: Includes CEO of subsidiary company• President/COO: Executive held both President and COO roles at the same time• Operating Executive: VP/SVP/EVP of Operations• Other: i.e. chairman, marketing, risk, consulting, commerce, investment officer, partner, managing director, general counsel

DivisionalPresident

COO President President/COO CEO CFO OtherOperatingExecutive

Founder

% from Position 24.9% 24.6% 15.3% 7.0% 6.9% 6.5% 6.0% 5.7% 3.1%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%


The most common path to CEO is an internal promotion from the COO role

Immediate Previous Position of Sitting CEOs (Internal vs. External)2019 Fortune 500 and S&P 500 (670 Companies; 677 Sitting CEOs)

20• Internal Divisional President: Includes CEO of subsidiary company• President/COO: Executive held both President and COO roles at the same time• Operating Executive: VP/SVP/EVP of Operations• Other: i.e. chairman, marketing, risk, consulting, commerce, investment officer, partner, managing director, general counsel

DivisionalPresident

COO President President/COO CEO CFO OtherOperatingExecutive

Founder

External 7.0% 1.2% 0.8% 0.0% 6.9% 0.5% 0.7% 1.5% 0.0%

Internal 17.9% 23.4% 14.5% 7.0% 0.0% 6.0% 5.3% 4.2% 3.1%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%


Financial Technology Retail Healthcare Services Energy Industrial

CEO 8.70 7.39 7.32 6.90 6.63 5.48 4.99

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

Financial sector CEOs have the longest tenure

Average Tenure of CEO by Industry2019 Fortune 500 and S&P 500 (670 Companies; 677 Sitting CEOs)

21

Average CEO Tenure:

6.77 years

Longest Tenured CEO

Leslie Wexner –L Brands, Inc. (56 Years)


C-Suite promotion from CFO to CEO has remained static

Percentage of Sitting CEOs coming directly from a CFO Chair (Internal or External)2019 Fortune 500 and S&P 500 (670 Companies; 677 Sitting CEOs, 46 CEOs Represented)

22

2012 2013 2014 2015 2016 2017 2018 2019

% from CFO Role 5.6% 5.8% 6.2% 6.5% 7.8% 6.2% 6.9% 6.9%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%


The Financial sector has the highest number of CEOs with CFO experience

Percentage of Sitting CEOs coming from a CFO Chair by Industry (Internal or External)2019 Fortune 500 and S&P 500 (675 Companies; 677 Sitting CEOs; 46 CEOs Represented)

23

Financial Industrial Services Energy Technology Consumer Retail Healthcare

% from CFO 34.0% 14.9% 14.9% 10.6% 10.6% 6.4% 4.3% 4.3%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%


CEOs in the Financial sector hold the most Chairman titles

Sitting CEOs that are also Chairman2019 Fortune 500 and S&P 500 (670 Companies; 677 Sitting CEOs, 265 CEOs Represented)

24

Financial Industrial Services Energy Consumer Healthcare Technology Retail

Chairman/CEO's 55 44 38 37 35 25 23 8

0

10

20

30

40

50

60


Nearly 70% of today’s CFOs had no immediate prior CFO experience before assuming the role

Percentage of Sitting CFOs by Immediate Previous Position2019 Fortune 500 and S&P 500 (670 Companies; 667 Sitting CFOs)

25

•Divisional CFO: Includes CFOs of subsidiary companies•External CFO recruitment means previous CFO of another company•Operations Executive: President, VP/SVP/EVP Operations•Corporate Finance Executive: VP, SVP, EVP of Finance•Strategy/MA: Investment Banking, Development, Planning or Strategy•Other: tax, law, IT, risk, consulting, etc.

CFOCorporate

FinanceExecutive

CorporateController/

ChiefAccounting

Officer

TreasurerDivisional

CFO

DivisionalPresident/OperationsExecutive

Other Strat/MAPresident/

COOInvestorRelations

CEOChief

Admin.Officer

% from Position 21.3% 18.2% 15.6% 10.3% 9.9% 8.7% 6.1% 5.0% 1.9% 1.8% 0.7% 0.5%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%


Internally promoted CFOs most often transition from a Corporate Finance Executive position

26

•Internal Divisional CFO: Includes CFOs of subsidiary companies•External CFO recruitment means previous CFO of another company•Operations Executive: President, VP/SVP/EVP Operations•Corporate Finance Executive: VP, SVP, EVP of Finance•Strategy/MA: Investment Banking, Development, Planning or Strategy•Other: tax, law, IT, risk, consulting, etc.

Percentage of Sitting CFOs by Immediate Previous Position (Internal or External)2019 Fortune 500 and S&P 500 (670 Companies; 667 Sitting CFOs)

CFOCorporate

FinanceExecutive

CorporateController/

ChiefAccounting

Officer

TreasurerDivisional

CFO

DivisionalPresident/OperationsExecutive

Other Strat/MAPresident/

COOInvestorRelations

CEOChief

Admin.Officer

Internal 0.0% 15.7% 13.6% 9.4% 8.0% 7.4% 3.8% 3.8% 0.9% 1.3% 0.1% 0.5%

External 21.3% 2.5% 2.0% 0.9% 1.9% 1.3% 2.3% 1.2% 1.0% 0.5% 0.6% 0.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%


Retail Financial Industrial Technology Consumer Services Energy Healthcare

CFO 5.08 5.03 4.84 4.58 4.35 4.23 4.04 3.52

0.00

1.00

2.00

3.00

4.00

5.00

6.00

The average tenure of a CFO is just under five years

Average Tenure of CFO by Industry2019 Fortune 500 and S&P 500 (670 Companies; 667 Sitting CFOs)

27

*Jeffrey Julien –Raymond James Financial, Inc. (32.3 Years)

Longest Tenured CFO

Average CFO Tenure:

4.46 years

*Retired Dec. 31, 2019


8 C

FOs

19

CFO

s

27

CFO

s

30

CFO

s

46

CFO

s

38

CFO

s

44

CFO

s

44

CFO

s

38

CFO

s

43

CFO

s

44

CFO

s

32

CFO

s

44

CFO

s

24

CFO

s 22

CFO

s

22

CFO

s

12

CFO

s

17

CFO

s

8 C

FOs

7 C

FOs

3 C

FOs

0

2

4

6

8

10

12

14

16

45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65

Ave

rage

Yea

rs in

CFO

Ch

air

Current CFO Age

As CFOs mature, far more retire early, particularly given the average tenure of five years in the role

Average Tenure of CFO by Age2019 Fortune 500 and S&P 500 (670 Companies; 667 Sitting CFOs)

28

# of CFOs per age


28

39

39

49

60

0 10 20 30 40 50 60 70

Just over 40% of CFOs have public accounting experience from the Big 5

2019 CFOs with Public Accounting Backgrounds2019 Fortune 500 and S&P 500 (670 Companies; 667 Sitting CFOs)

29*Multiple CFOs have worked for more than one Big Five public accounting firm

Total Sitting CFOs: 667

Public Accounting Background: 275*Percentage of Total CFOs: 41.2%

Big Five Firm Background: 215Percentage of Total CFOs: 32.2%

Non-Big Five Firm Background: 60Percentage of Total CFOs: 9.0%

CFO Public Accounting Statistics


5

6

11

12

16

20

0 5 10 15 20 25

13.6% of today’s CFOs have investment banking experience

2019 CFOs with Investment Banking Backgrounds2019 Fortune 500 and S&P 500 (670 Companies, 667 Sitting CFOs)

30*Multiple CFOs have worked for more than one investment bank

CFO Investment Banking Statistics

Total Sitting CFOs: 667

Investment Banking Background: 91*Percentage of Total CFOs: 13.6%

Leading Investment Banks: 70Percentage of Total CFOs: 10.5%

Other Investment Banks: 21Percentage of Total CFOs: 3.1%


Almost 20% of sitting CFOs hold an external public Board seat

Sitting CFOs holding external public Board seat(s)2019 Fortune 500 and S&P 500 (667 Sitting CFOs, 132 hold Board positions)

31

1 Public Board 2 Public Boards 3 Public Boards

Count of CFOs 118 12 2

0

20

40

60

80

100

120


Over 45% of CFOs who have retired within the past calendar year hold an external public Board seat

Recently retired CFOs holding public Board seat(s)2019 Fortune 500 and S&P 500 (43 Retired CFOs*, 21 hold Board positions)

32

*Retired within the past calendar year

1 Public Board 2 Public Boards 3 Public Boards 4 Public Boards

Count of CFOs 13 5 2 1

0

2

4

6

8

10

12

14

Retired CFO’s on 3+ Public Boards

David Gryska (3): Aerie Pharmaceuticals Inc.

PDL BioPharma Inc.

Seattle Genetics Inc.

Robin Washingon (3): Alphabet Inc.

Honeywell International Inc.Salesforce Inc.

Kathy Waller (4): Beyond Meat Inc.

Cadence BancorporationCGI Inc.

Delta Airlines Inc.


Technology sector CFOs have the least amount of experience before taking their position

Average Years of Experience with Company before assuming Roles of CEO/CFO/COO at that Company* (Internal Hires)2019 Fortune 500 and S&P 500 (670 Companies; 544 Internal CEOs Hires; 439 Internal CFO Hires; 209 Internal COO Hires)

33

*From start date with company to date of C-Suite appointment

Average Consumer Energy Financial Healthcare Industrial Retail Services Technology

CEO 13.5 14.3 14.3 15.1 10.2 14.9 15.8 12.5 10.4

CFO 10.9 12.0 11.7 10.1 12.0 11.7 10.4 10.9 8.8

COO 12.6 14.5 11.8 12.8 10.8 12.3 15.0 12.6 11.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

Year

s o

f Ex

per

ien

ce


Age at hire for CEOs and CFOs has increased significantly since last year

Age at Hire for CEOs and CFOs2019 Fortune 500 and S&P 500 (670 Companies; 672 Known CEO Ages at Hire; 638 Known CFO Ages at Hire)

34

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

CEO 45.9 49.2 47.2 46.5 48.1 49.7 50.4 52.6 51.3 51.8 51.5 52.2 54 54.1 56.8

CFO 44 43.7 42.8 43.8 46 46.7 46.4 47.6 48.6 47.5 48.1 49 49 48.9 51.9

40

42

44

46

48

50

52

54

56

58

60

Age


0

5

10

15

20

25

30

35

40

45

50

19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73

Co

un

t o

f C

EO

s

Male Female

Half of CEOs were appointed to their role before age 51

Age at Hire for Sitting CEOs2019 Fortune 500 and S&P 500 (670 Companies; 677 Sitting CEOs; 667 Known CEO Ages at Hire)

35

Youngest Males (19): Mark Zuckerberg – Facebook, Inc.Michael Dell – Dell Technologies

Oldest Male (73):Stefano Pessina – Walgreens Boots Alliance

Youngest Females (40):Deborah Cafaro – Ventas, Inc.

Laura Alber – Williams-Sonoma

Oldest Females (60):Kathryn Marinello – Hertz Global Holdings, Inc.

Teresa J. Rasmussen – Thrivent Financial for Lutherans

Age at Hire of Sitting CEOs


0

10

20

30

40

50

60

35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88

Co

un

t o

f C

EO

s

Male Female

Half of all CEOs are between 54 and 61 years old

Age Distribution of Sitting CEOs2019 Fortune 500 and S&P 500 (670 Companies; 677 Sitting CEOs; 672 Known CEO Ages)

36

Average Age of Sitting CEOs

Male: 58

Female: 56

Age Range of Sitting CEOs

Youngest Male (35):Mark Zuckerberg – Facebook, Inc.

Oldest Male (88): Warren Buffett – Berkshire Hathaway,

Inc.

Youngest Female (44):Corie Barry– Best Buy Co. Inc.

Oldest Female (65): Marillyn Hewson– Lockheed Martin

Corporation


0

5

10

15

20

25

30

35

40

45

29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71

Co

un

t o

f C

FO

s

Male Female

Over 60% of CFOs were younger than 50 when appointed to their role

Age at Hire of Sitting CFOs2019 Fortune 500 and S&P 500 (670 Companies; 667 Sitting CFOs; 638 Known CFO Ages at Hire)

37

Youngest Male (30):Timothy Mammen – IPG Photonics Corp.

David Phillips – Publix Super Markets, Inc.

Oldest Male (71): Michael Steuert – Fluor Corp.

Youngest Female (33): Maria Shields – ANSYS

Karla Lewis – Reliance Steel & Aluminum Co.

Oldest Female (60): Christine McCarthy – The Walt Disney

Company

Age at Hire of Sitting CFOs


0

5

10

15

20

25

30

35

40

45

31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76

Co

un

t o

f C

FO

s

Male Female

Half of all CFOs are between 49 and 57 years old

Age Distribution of Sitting CFOs2019 Fortune 500 and S&P 500 (670 Companies; 667 Sitting CFOs; 643 Known CFO Ages)

38

Average Age of Sitting CFOs

Male: 53

Female: 52

Age Range of CFOs

Youngest Male (31): Kaes Van’t Hof – Diamondback Energy, Inc.

Oldest Male (76): Walter Berman – Ameriprise Financial, Inc.

Youngest Female (37): Dhivya Suryadevara – General Motors, Inc.

Oldest Female (64): Christine McCarthy– The Walt Disney

Company


Diversity Landscape

39


40

The number of Female CEOs has reached an all-time high

Percentages of Companies with Female CEOs or CFOs (2004-2019)2019 Fortune 500 and S&P 500 (670 Companies; 677 Sitting CEOs; 667 Sitting CFOs)

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

CEO 1.6% 1.4% 2.1% 2.2% 2.1% 2.2% 1.9% 3.0% 3.5% 3.8% 4.9% 4.3% 4.2% 5.1% 4.9% 6.1%

CFO 6.3% 6.9% 6.3% 7.2% 7.3% 8.7% 8.7% 10.0% 9.7% 10.2% 10.6% 12.2% 12.3% 11.6% 13.2% 13.2%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%


The number of Female CEOs has more than tripled in the last decade

Number of Companies with Female CEOs by Industry (2004-2019)2019 Fortune 500 and S&P 500 (670 Companies; 677 Sitting CEOs)

41

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Consumer 0 1 4 4 4 4 4 5 5 4 5 4 4 6 3 3

Energy 0 0 0 0 0 0 0 1 2 3 3 3 5 6 5 3

Financial 1 1 3 3 3 3 2 4 4 4 5 5 5 7 8 9

Healthcare 0 0 0 1 1 1 1 1 2 1 1 1 1 2 2 2

Industrial 1 1 1 1 1 2 2 3 4 5 6 5 5 5 5 6

Retail 1 1 1 2 2 2 1 1 1 2 3 3 2 2 4 8

Services 2 2 2 1 0 0 0 0 0 1 2 2 1 2 3 5

Technology 4 2 2 2 2 2 2 4 5 5 7 5 5 4 3 5

Total 9 8 13 14 13 14 12 19 23 25 32 28 28 34 33 41

0

5

10

15

20

25

30

35

40

45

Fem

ale

CE

Os


2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Consumer 2 3 2 2 2 3 2 2 3 4 5 6 7 7 7 11

Energy 5 5 6 7 7 6 6 7 7 7 8 9 10 12 13 9

Financial 3 4 4 2 8 11 12 13 11 10 10 13 14 15 19 18

Healthcare 5 5 3 4 5 6 6 5 5 5 6 6 7 5 5 6

Industrial 2 4 4 6 4 5 5 9 8 11 12 14 16 13 14 13

Retail 8 7 6 8 7 7 7 9 9 10 11 14 11 10 12 8

Services 2 3 5 5 4 9 9 10 10 8 7 7 8 6 9 12

Technology 8 10 9 11 9 8 8 9 10 12 11 11 9 10 10 11

Total 35 41 39 45 46 55 55 64 63 67 70 80 82 78 89 88

0

10

20

30

40

50

60

70

80

90

100

Fem

ale

CFO

s

The Financial sector has the most Female CFOs

Number of Companies with Female CFOs by Industry (2004-2019)

2019 Fortune 500 and S&P 500 (670 Companies; 667 Sitting CFOs)

42


Ethnic and racial diversity in the CEO role is at an all-time high

Number of Companies with Ethnically and Racially Diverse CEOs (2004-2019)2019 Fortune 500 and S&P 500 (670 Companies; 677 Sitting CEOs)

43

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Asian / Indian 12 14 14 15 15 15 16 18 18 18 23 27 28 29 30 36

African American 6 4 5 6 6 6 5 6 6 7 6 6 7 6 5 5

Hispanic / Latino 9 9 7 9 9 9 9 10 12 13 12 14 17 16 19 21

Total 27 27 26 30 30 30 30 34 36 38 41 47 52 51 54 62

0

10

20

30

40

50

60

70

Eth

nic

ally

& R

acia

lly

Div

erse

CE

Os


For 10 years, the Technology sector has led in diversity at the CEO position

Number of Companies with Ethnically and Racially Diverse CEOs by Industry (2004-2019)2019 Fortune 500 and S&P 500 (670 Companies; 677 Sitting CEOs)

44

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Consumer 5 5 4 5 5 5 5 5 4 5 5 6 6 5 5 7

Energy 2 1 1 1 1 1 1 0 0 0 1 2 3 3 4 5

Financial 5 4 4 5 7 5 6 8 8 8 8 8 7 7 7 5

Healthcare 3 3 3 3 3 3 2 4 6 6 6 6 6 6 6 7

Industrial 1 1 1 2 2 2 2 2 2 3 4 5 7 7 6 7

Retail 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1

Services 3 5 5 6 5 5 5 5 5 5 4 6 8 6 8 8

Technology 8 8 8 8 7 9 9 10 11 11 13 13 14 16 17 22

Total 27 27 26 30 30 30 30 34 36 38 41 47 52 51 54 62

0

10

20

30

40

50

60

70

Eth

nic

ally

& R

acia

lly D

iver

se C

EOs


Ethnic and racial diversity in the CFO chair has doubled over the last six years

45

Number of Companies with Ethnically and Racially Diverse CFOs (2004-2019)2019 Fortune 500 and S&P 500 (670 Companies; 667 Sitting CFOs)

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Asian / Indian 8 10 7 8 11 9 9 10 11 14 17 21 23 28 33 35

African American 4 4 4 5 6 5 5 5 4 4 6 7 9 11 10 11

Hispanic / Latino 6 6 5 5 5 7 9 10 9 8 11 11 11 12 12 13

Total 18 20 16 18 22 21 23 25 24 26 34 39 43 51 55 59

0

10

20

30

40

50

60

70

Eth

nic

ally

& R

acia

lly

Div

erse

CF

Os


The Technology sector leads in ethnic and racial diversity at the CFO position

Number of Companies with Ethnically and Racially Diverse CFOs by Industry (2004-2019)2019 Fortune 500 and S&P 500 (670 Companies; 667 Sitting CFOs)

46

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Consumer 3 4 2 2 3 5 5 5 4 4 4 4 6 6 8 9

Energy 0 1 1 1 2 2 3 3 2 2 4 6 5 6 6 7

Financial 5 4 4 4 4 3 3 4 3 3 5 7 9 10 10 10

Healthcare 4 4 3 3 5 5 5 5 5 5 5 5 6 6 5 6

Industrial 1 1 1 1 2 2 2 2 3 4 5 6 6 8 8 6

Retail 1 1 1 1 1 1 1 1 1 1 0 0 0 1 3 3

Services 4 4 3 3 3 2 3 4 3 5 6 5 5 5 5 7

Technology 0 1 1 3 2 1 1 1 3 2 5 6 6 9 10 11

Total 18 20 16 18 22 21 23 25 24 26 34 39 43 51 55 59

0

10

20

30

40

50

60

70

Eth

nic

ally

& R

acia

lly

Div

erse

CF

Os


Educational Background

47


17

17

24

27

32

34

49

54

68

80

0 10 20 30 40 50 60 70 80

More CEOs come from the Big Ten Conference than any other U.S. conferenceSitting CEO Undergraduate University Conference Affiliation

2019 Fortune 500 and S&P 500 Companies (677 Sitting CEOs; 643 Known Educational Backgrounds)

48

Big Ten Conference

Ivy League

Atlantic Coast Conference

Southeastern Conference

Pacific 12 Conference

Patriot League

Big 12 Conference

Mid-American Conference

International

NESCAC

Harvard University

Texas A&M University

University of Pennsylvania

University of Virginia

Princeton University

13

11

10

10

9

Top Schools # of CEOs


Canada educates the most CEOs outside of the United States

Top Five International Degree Producing Countries for Sitting CEOs2019 Fortune 500 and S&P 500 Companies (677 Sitting CEOs; 643 Known Educational Backgrounds)

49

Italy

UK

Australia

France

Canada

0 1 2 3 4 5 6 7 8 9 10


15

19

21

27

30

36

51

58

59

78

0 10 20 30 40 50 60 70 80

The Big Ten Conference has claimed the most CFOs for seven consecutive years

Sitting CFO Undergraduate University Conference Affiliation2019 Fortune 500 and S&P 500 Companies (667 Sitting CFOs; 630 Known Educational Backgrounds)

50

Indiana University


University of Notre Dame

University of Michigan

Penn State University

Harvard University

18

17

13

10

9

8

Top Schools # of CFOs

Mid-American Conference

American Athletic Conference

Big Ten Conference

International

Atlantic Coast Conference

Ivy League

Pacific 12 Conference

Big 12 Conference

Southeastern Conference

Patriot League


India educates the most CFOs outside of the United States

Top Five International Degree Producing Countries for Sitting CFOs2019 Fortune 500 and S&P 500 Companies (667 Sitting CFOs; 630 Known Educational Backgrounds)

51

Ireland

Australia

United Kingdom

Canada

India

0 1 2 3 4 5 6 7 8 9 10


Top Public Schools # of CEOs

Public universities currently produce the most sitting CEOs

Sitting CEO Undergraduate University2019 Fortune 500 and S&P 500 Companies (677 Sitting CEOs; 643 Known Educational Backgrounds)

52

Harvard University


Princeton University

Stanford University

Cornell University

Lehigh University

Top Private Schools # of CEOs

13

10

9

8

7

7

Texas A&M University


Penn State University

Michigan State University

Iowa State University

United States Military Academy


11

10

9

8

8

8

754%Public

46%Private


Indiana University


Pennsylvania State University

University of Texas - Austin


Top Public Schools # of CFOs


University of Notre Dame

Stanford University

Harvard University

Cornell University

Top Private Schools # of CFOs

Public universities currently produce the most sitting CFOs

Sitting CFO Undergraduate University2019 Fortune 500 and S&P 500 Companies (667 Sitting CFOs; 630 Known Educational Backgrounds)

53

17

13

9

8

8

18

10

9

8

7

52%Public

48% Private


Over 60% of CEOs have an undergraduate degree in Business or Engineering

Percentage of CEOs from each Educational Background 2019 Fortune 500 and S&P 500 (670 Companies; 677 Sitting CEOs; 643 Known Educational Backgrounds)

54

EngineeringEconomics Business Administration Accounting Finance

Top Majors # of CEOs

14992714928

Dual9%

Sciences7%

Liberal Arts22%

Engineering28%

Business34%

• Economics is included in Liberal Arts• Mathematics is included in Sciences• Other includes: International Business, Commerce, Pre-Professional Studies, Retail, Operations

27%

39%

15%

4%

8%

7% Accounting

BusinessAdministration

Finance

Management

Marketing

Other


Dual6%

Sciences4%

Liberal Arts18%

Engineering7%

Business65%

Approximately two-thirds of CFOs have an undergraduate degree in Business

Percentage of CFOs from each Educational Background 2019 Fortune 500 and S&P 500 (670 Companies; 667 Sitting CFOs; 630 Known Educational Backgrounds)

55• Economics is included in Liberal Arts• Mathematics is included in Sciences• Other includes: International Business, Commerce, Pre-Professional Studies, Retail, Operations

AccountingEconomics Business Administration Finance Engineering

Top Majors # of CFOs

20798928329

39%

23%

13%

4%

4%

8% Accounting

BusinessAdministration

Finance

Management

Marketing

Other


Close to 60% of CEOs hold an advanced degree

CEO Terminal Degree Educational Background2019 Fortune 500 and S&P 500 (670 Companies; 677 Sitting CEOs; 643 Known Educational Backgrounds)

56

Overall Consumer Energy Financial Healthcare Industrial Retail Services Technology

Bachelor's 42.2% 29.0% 50.0% 50.0% 21.4% 40.9% 46.2% 51.0% 35.6%

MBA 41.9% 51.6% 26.3% 40.3% 42.9% 52.3% 46.2% 33.3% 48.9%

Master's 8.4% 6.5% 15.8% 5.6% 14.3% 4.5% 7.7% 9.8% 6.7%

JD 4.0% 12.9% 5.3% 2.8% 7.1% 2.3% 0.0% 3.9% 0.0%

PhD 3.4% 0.0% 2.6% 1.4% 14.3% 0.0% 0.0% 2.0% 8.9%

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10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Bachelor's MBA Master's JD PhD


Almost 50% of CFOs hold an MBA degree

CFO Terminal Degree Educational Background2019 Fortune 500 and S&P 500 (667 Sitting CFOs; 630 Known Educational Backgrounds)

57

Overall Consumer Energy Financial Healthcare Industrial Retail Services Technology

Bachelor's 38.3% 35.0% 44.1% 37.3% 26.9% 36.7% 48.0% 45.0% 37.0%

MBA 49.0% 60.0% 42.4% 48.2% 50.0% 54.4% 48.0% 47.5% 41.1%

Master's 5.1% 1.7% 3.4% 5.5% 11.5% 2.2% 0.0% 2.5% 12.3%

JD 4.9% 1.7% 5.1% 7.3% 7.7% 3.3% 4.0% 5.0% 4.1%

PhD 2.7% 1.7% 5.1% 1.8% 3.8% 3.3% 0.0% 0.0% 5.5%

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10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

Bachelor's MBA Master's JD PhD


0 5 10 15 20 25 30 35 40 45

CEO CFO

The most common path to the C-Suite runs through these eight leading MBA programs

Top MBA Schools2019 Fortune 500 and S&P 500 (670 Companies; 643 CEOs and 630 CFOs Known Educational Backgrounds)

58

Harvard University

Stanford University

Northwestern University


University of Chicago

Columbia University

New York University


c associates volatility report 2019 · crist|kolder associates methodology notes • 2019 fortune...

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