NASDAQ OMX

Global study on CEO trends indicates a significant uptick in CEOs forced out of office for ethical lapses: PwC's Strategy&

Dela

LONDON, May 14, 2017 (GLOBE NEWSWIRE) -- The share of CEOs forced out of office for ethical lapses has been on the rise, according to the 2016 CEO Success study released today by Strategy&, PwC's strategy consulting business. The study, which analyzed CEO successions at the world's largest 2,500 public companies over the past 10 years, reports that forced turnovers due to ethical lapses rose from 3.9 percent of all successions in 2007-11 to 5.3 percent in 2012-16 - a 36 percent increase, due in large part to increased public scrutiny and accountability of executives.

The increase was more dramatic at companies in the U.S. and Canada. Forced turnovers for ethical lapses at these companies increased from 1.6 percent of all successions in 2007-11 to 3.3 percent in 2012-16 - a 102 percent increase. In Western Europe, the share of CEOs forced out for ethical lapses increased to 5.9 percent from 4.2 percent, and in the BRIC countries, to 8.8 percent from 3.6 percent.

"Our data cannot show - and perhaps no data could - whether there's more wrongdoing at large corporations today than in the past. However, we doubt that's the case, based on our own experience working with hundreds of companies over many years," says Per-Ola Karlsson, partner and leader of Strategy&'s organization and leadership practice for PwC Middle East. "Over the last 15 years, five trends have resulted in boards of directors, investors, governments, customers, and the media holding CEOs to a far higher level of accountability for ethical lapses than in the past."

The Five Trends Shaping CEO Accountability

  • Public opinion: Since the financial crisis of 2007-08 and the Great Recession that it ignited, confidence and trust in large corporations and CEOs has been declining; the public has become more suspicious, more critical, and less forgiving of corporate misbehavior. 
     
  • Governance and regulation: The rise of public criticism of executives and corporations has translated directly into regulatory and legislative action, and companies in the U.S. and many other countries have moved to a zero-tolerance approach toward bad behavior in the C-suite.
     
  • Business operating environment: Companies increasingly are (1) pursuing growth in emerging markets where ethical risks, such as the possibility of bribery and corruption, are heightened, and (2) relying on extended global supply chains that increase counterparty risks.
     
  • Digital communications: The use of email, text messaging, and social media has created new risks for ethical lapses. A company's digital communications can provide irrefutable evidence of misconduct, and their existence increases the likelihood that a CEO will be held accountable.
     
  • The 24/7 news cycle: Unlike in the mid- to late 20th century, when most executives and companies could maintain a low public profile, today the lightning-fast flow of Web-based financial news and data ensures that negative information travels quickly and widely.

Despite the global increase in forced turnovers for ethical lapses, companies in the U.S. and Canada have the lowest incidence of such dismissals - 3.3 percent in 2012-16 compared to 5.9 percent in Western Europe and 8.8 percent in the BRIC countries. More stringent governance regulation is one likely reason. Both the legislative requirements for codes of conduct and anti-bribery statutes have been tightened significantly in the United States.

Bigger Company, Bigger Target

The study also found that at the largest companies (those in the top quartile by market capitalization) in the U.S. and Canada and Western Europe, the overall share of CEOs forced out of office was significantly greater than the share forced out in the other market-cap quartiles.

"The fact that forced turnovers for ethical lapses were even higher at companies in the top quartile by market capitalization in these regions supports our hypothesis, since the largest companies are the most affected by the five trends and are subject to the greatest scrutiny," says Kristin Rivera, partner and global forensics clients and markets leader with PwC US.

"The increasing incidence of CEOs being forced out of office for ethical lapses may have a positive effect on public opinion over time by demonstrating that bad behavior is in fact being detected and punished," says DeAnne Aguirre, global leader of Strategy&'s Katzenbach Center of Innovation for Culture and Leadership, principal with PwC US. "In the meantime, CEOs need to lead by example on a personal and organizational level and strive to build and maintain a true culture of integrity."

More Facts from the 2016 CEO Success study

  • CEO turnover: CEO turnover at the world's largest 2,500 companies decreased from its record high of 16.6 percent in 2015 to 14.9 percent in 2016, due largely to the drop in merger and acquisition activity. CEO turnover was highest in Brazil, Russia, and India, at 17.2 percent, followed by Japan (15.5 percent) and Western Europe (15.3 percent) and China (15.2 percent). CEO turnover fell in every region we studied except for the U.S. and Canada.
     
  • Women CEOs: There were 12 women globally appointed to the role of CEOs in 2016 - 3.6 percent of the incoming class. This marks a return of the slow trend toward greater diversity that had been in place over the last several years, and a recovery from the previous year's low point of 2.8 percent. The share of incoming female CEOs was highest in the U.S. and Canada, rebounding to 5.7 percent after falling for the previous three years. Five industries - healthcare, industrials, information technology, consumer staples, and telecom services - did not have a single incoming female CEO in 2016.

About the 2016 CEO Success Study
Over the course of the past 17 years, Strategy& has been tracking continuous data on CEO successions. The 2016 study analyzed CEO successions at the world's 2,500 largest (by market capitalization) public companies over the last 10 years. For the purposes of this study, we define an ethical lapse as a scandal or improper conduct by the CEO or other employees; examples include fraud, bribery, insider trading, environmental disasters, inflated resumes, and sexual indiscretions.

Ends 
To learn more about the 2016 CEO Success study, visit www.strategyand.pwc.com/ceosuccess. A copy of the global study, including findings by geography and industry, is available from the media contact. Multimedia content, including infographics and video, is also available.

About Strategy&
Strategy& is a global team of practical strategists committed to helping you seize essential advantage. We do that by working alongside you to solve your toughest problems and helping you capture your greatest opportunities. We bring 100 years of strategy consulting experience and the unrivaled industry and functional capabilities of the PwC network to the task. We are part of the PwC network of firms in 157 countries, with more than 223,000 people committed to delivering quality in assurance, tax, and advisory services.

Notes

  1. For more information, visit www.strategyand.pwc.com/ceosuccess.
  2. © 2017 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details.

Contact:
Kiran Chauhan
Global Public Relations
Strategy&, part of the PwC network
T: +1 416 890 8695
kiran.chauhan@pwc.com




This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: PWC Network via Globenewswire

Om

NASDAQ OMX
NASDAQ OMX



Följ NASDAQ OMX

Abonnera på våra pressmeddelanden.

Senaste pressmeddelandena från NASDAQ OMX

Arc Aroma Pure AB : 180420 ARCAROMA stärker informationsflödet till den finansiella marknaden20.4.2018 15:20Pressmeddelande

Pressrelease 2018-04-20 A rc Aroma Pure AB ("ARCAROMA") möter det ökade intresset hos investerare och aktiverar en ny tjänst. ARCAROMA kommer att publicera nyhetsbrev med en mer djuplodande information om bolaget, strategier och framsteg. Skälet är ett kraftigt ökat intresse från marknaden, kanske som resultat av en ägarspridning. Även de restriktioner som numera finns hos marknaden avseende finansiella pressmeddelande spelar in. Det första nyhetsbrevet kommer att släppas under vecka 17 på bolagets Investor sida www.investor.arcaroma.se. På investor.arcaroma.se kommer det att finnas en länk till nyhetsbreven och till en sida där allmänheten har möjlighet att anmäla sig till en prenumerationstjänst. Målsättningen är att nyhetsbreven skall släppas periodiskt och i även samband med händelser som förtjänar en mer detaljerad information än vad som ryms i ett finansiellt pressmeddelande. Det är vår förhoppning att bolaget på detta sätt kan tillfredsställa det ökande behov av information som

Abeona Therapeutics Receives Orphan Drug Designation in the European Union for ABO-202 Gene Therapy Program in Batten Disease20.4.2018 14:15Pressmeddelande

NEW YORK and CLEVELAND, April 20, 2018 (GLOBE NEWSWIRE) -- Abeona Therapeutics Inc. (NASDAQ:ABEO), a leading clinical-stage biopharmaceutical company focused on developing novel cell and gene therapies for life-threatening rare genetic diseases, announced today that the European Medicines Agency (EMA) Committee for Orphan Medicinal Products has granted Orphan Drug Designation (EMA/OD/013/18) for Abeona's gene therapy program ABO-202 for the treatment of subjects with neuronal ceroid lipofuscinosis, also known as Batten Disease, a fatal lysosomal storage disease that primarily affects the nervous system in children. ABO-202 is an adeno-associated virus developed to introduce a functional copy of the CLN1 gene into cells in order to restore the enzyme activity that is needed to break down certain lipopigment proteins that are deficient in patients with CLN1 disease. "This designation is an important step in our CLN1 program as it encourages us to proceed towards clinical development," st

Taconic Biosciences Licenses Easi-CRISPR Technology from the University of Nebraska20.4.2018 14:00Pressmeddelande

RENSSELAER, N.Y., April 20, 2018 (GLOBE NEWSWIRE) -- Taconic Biosciences, a global leader in providing genetically engineered mouse model and service solutions, has been granted a license to the Easi-CRISPR technology from the University of Nebraska. Easi-CRISPR was developed in the laboratories of Drs. Masato Ohtsuka (Tokai University in Japan), and Channabasavaiah Gurumurthy (University of Nebraska). The terms of the agreement include a world-wide, non-exclusive license to the technology, allowing Taconic rights to generate and sell rodent models generated via Easi-CRISPR. When compared to traditional CRISPR, Easi-CRISPR represents a significant advantage, allowing researchers to perform whole genetic insertions versus being limited to point mutations and constitutive knockouts. "Easi-CRISPR is the next progression of the revolutionary CRISPR/Cas technology. Combining the speed of CRISPR with larger genetic insertions allows complex projects typically requiring homologous recombinati

LeoVegas new principal partner for Swedish Open20.4.2018 11:30Pressmeddelande

The LeoVegas Mobile Gaming Group is expanding its sponsoring partnership with the Swedish Open in Båstad by assuming the role as a principal partner for the prestigious tennis tournament. "Last year's successful sponsor partnership with the Swedish Open in Båstad was a strategic effort to profile LeoVegas Sport and our offering in tennis. This venture whet our appetite, and we have therefore chosen to ramp up our sponsorship from Official Partner to become one of the Swedish Open's Principal Partners," comments Gustaf Hagman, Group CEO. Betting on tennis - especially live betting via mobile devices - is one of the gaming categories which in terms of turnover is growing the fastest in most of LeoVegas markets. Live betting puts high demands on technology and is well in line with LeoVegas' ambition to continuously deliver the best mobile gaming experience. Louise Nylén, LeoVegas' Chief Marketing Officer, comments: "Our sponsoring partnership with the Swedish Open in Båstad strengthens ou

LeoVegas ny huvudpartner till Swedish Open20.4.2018 11:30Pressmeddelande

Mobilspelsbolaget LeoVegas utökar sponsorsamarbetet med Swedish Open i Båstad genom att anta rollen som huvudpartner till den anrika tennisturneringen. "Förra årets framgångsrika sponsorsamarbete med Swedish Open i Båstad var en strategisk satsning på att profilera LeoVegas Sport och vårt erbjudande inom tennis. Den satsningen gav mersmak och därför väljer vi nu att växla upp vårt sponsorsåtagande från officiell partner till en av Swedish Opens huvudpartners", säger Gustaf Hagman, Group CEO. Spel på tennis, och då inte minst livebetting i mobilen, är en av de spelkategorier som omsättningsmässigt ökar snabbast på flertalet av LeoVegas marknader. Livebetting ställer höga krav på teknologi och ligger i linje med LeoVegas ambition att ständigt leverera den bästa spelupplevelsen i mobilen. "Sponsorsamarbetet med Swedish Open i Båstad stärker vår position som relevant aktör inom sport och framförallt inom tennis. Vår strävan är att ligga i framkant med vår datadrivna marknadsföring och komb

PayByPhone appoints Andreas Gruber as new President and CEO20.4.2018 00:19Pressmeddelande

VANCOUVER, British Columbia, April 19, 2018 (GLOBE NEWSWIRE) -- PayByPhone, the global leader in mobile parking payments, today announced that it will appoint Andreas Gruber as president and Chief Executive Officer effective June 1st, 2018. Francis Dupuis, the former President and CEO, will take over a position in Germany with parent company Volkswagen Financial Services AG. To provide additional impetus to the PayByPhone board, two new board positions have been created and as a result Maggie Clay (CFO) and Catherine Scott (Legal Counsel) will be appointed effective June 1st, 2018. During his time at PayByPhone, Francis led the business through significant growth and organizational change and leaves the company well positioned for continued success. "We would like to thank Francis for his strong leadership and look forward to building on his experience within Volkswagen Financial Services," Gerd Künne, Vice-President of mobility unit at Volkswagen Financial Services, said. Francis is e

I vårt pressrum kan du läsa de senaste pressmeddelandena, få tillgång till pressmaterial och hitta kontaktinformation.

Besök vårt pressrum