Article, Event
FTSE 100 – 2024 CIO/CTO move analysis
A rise in external hiring
During 2024, internal promotions accounted for just 29% of senior appointments, companies appear to be placing greater emphasis on external experience. This year, 71% of senior roles were filled by external hires – up from 45% in 2023 and just 40% in 2022. As expected, most external hires came from other listed companies or subsidiaries.
Last year, we wrote the article Smoke and Mirrors: The Fallacy of Technology Succession Planning. The article suggests most CIO and CTO roles continue to be filled externally due to concerns over internal readiness, limited visibility, and board disconnects with evolving tech demands. The article calls for structured development, board exposure, and commercial training to better prepare internal candidates. Does a rise in external hiring reflect a lack of confidence in businesses’ ability to respond to today’s challenges, and are seeking answers from other areas?
Industry trends and diversity shifts
The broader leadership trends also play out differently across industries. Financial services led the way, accounting for 30% of external hires, followed by retail at 20%. Additional appointments came from real estate, pharmaceuticals, hospitality and media. Cross-sector moves were common across most industries, except in financial services, where nearly all incoming hires transitioned from other firms within the same sector.
On the diversity front, female appointments saw a notable increase. Female hires made up 36% of incoming CIOs and CTOs, up from 27% in 2023. Among external male hires, 86% joined directly from publicly listed companies or subsidiaries of listed companies, and 86% had previously held the title of CIO or CTO, with the remainder coming from the tech consulting industry. In comparison, all female appointees we’ve tracked had moved from a CIO or CTO role and had worked for a FTSE 100 company, highlighting a strong emphasis on proven leadership and high-profile corporate backgrounds among candidates.
Of those exiting CIO or CTO roles in 2024, most moved into similar executive positions, an NED, or advisory role. 16% left without securing an immediate next step.
