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Leadership Succession

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“If I have seen further, it is by standing on the shoulders of giants.” � Isaac Newton

Country Focus
Brand Marketing
Go-to-Market Planning

Latin America (1995-2001)

Regional/Division Focus
Execution & Compliance
Channel & Marketing Excellence

Asia Pacific (2002-2008)

Corporate/Global Focus
Strategy and M&A
Business Partnering

USA (2009 - )

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RRA at a Glance�

Headquartered in New York City, RRA is a global leadership advisory and executive search firm, specializing in helping global clients build teams of transformational leaders

Global footprint with 47 offices around the world offering services in North America, LatAm, EMEA and Asia/Pacific

Deep expertise in all industries and functions serving corporations, private equity, and social impact clients

Purpose: To improve the way the world is led

Vision: To become the preeminent leadership advisory firm

RRA by the Numbers

Annual Engagements

6,500+

Equity Partners

200+

1,900+

Number of Global Employees

Average Revenue

Growth

+15%

Overview

Competitive Landscape --- The SHREKs

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Global company with specialized services�

RRA’s global presence allow them to anticipate trends that are reshaping the global business environment

Business and Professional Services
Consumer
Education
Energy and Natural Resources
Financial Services
Healthcare
Industrials
Social Impact
Private Equity
Technology

Boards of Directors
Chief Executive
Corporate Affairs
Data and Analytics Leadership
Digital Leadership
Finance
Human Resources
Legal, Regulatory and Compliance
Marketing
Operations & Supply Chain
Risk

Leadership Search and Succession

Executive Search
Board Director & Chair Search
CEO Succession
C-Suite Succession

Leadership Performance

DE&I Advisory
Board Effectiveness
Culture Analytics
Assessment & Benchmarking
Development & Transitions
Team Effectiveness

Expertise

Americas

• Atlanta

• Boston

• Buenos Aires

• Calgary

• Chicago

• Dallas

• Houston

• Los Angeles

• Mexico City

• Miami

• Minneapolis/St. Paul

• Montreal

• New York

• Palo Alto

• San Francisco

• São Paulo

• Stamford

• Toronto

• Washington, D.C.

EMEA

• Amsterdam

• Barcelona

• Berlin

• Brussels

• Copenhagen

• Dubai

• Frankfurt

• Hamburg

• Helsinki

• London

• Madrid

• Milan

• Munich

• Oslo

• Paris

• Stockholm

• Warsaw

• Zürich

Asia/Pacific

• Beijing

• Hong Kong

• Melbourne

• Mumbai

• New Delhi

• Shanghai

• Shenzhen

• Singapore

• Sydney

• Tokyo

Capabilities

Industries

Functions

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Poll: How did the CFO of your organization get to his/her position?

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Poll: Does your organization have a C-Suite succession plan?

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Poll: Which of the following action have you found to be most effective in retaining talent at your organization?

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What business leaders are concerned today?

Top External Factors Impacting Business in the Year Ahead

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Top leadership challenges in your industry

In a fast-moving world, your leaders need to help you tackle high-impact decisions in real-time.

How well prepared is your organization’s leadership team to respond to each risk?

(% of leaders saying executive leadership team is prepared or very prepared)

* Source: RRA 2022 Global Leadership Monitor

#1 Availability of talent/skills

41^%

#2 Uncertain economic growth

50^%

#3 Geopolitical uncertainty

33^%

#4 Technological change

65^%

#5 Return to work/hybrid work

65^%

#6 Major health threats

76^%

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Executive and next-gen moves put leadership pipelines at risk

�44^%�of C-suite leaders would move to another employer for the right opportunity.

�55^%�of next-gen leaders would move to another employer for the right opportunity.

RRA 2022 Global Leadership Monitor, Base n = 1,075 C-suite and Next-Gen executives

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Discussion Starter

“How engaged are your next-generation leaders? What steps have you put in place to retain them?”

FAQ

Q: How do you define next-gen leaders?

A: Leaders who are 1-2 levels below the C-suite. I.e. these are the individuals who make up your short- and medium-term leadership succession pipeline.

Q: How does this data vary by region?

A: 48% of leaders (c-suite and next-gen) in the Americas say they would be open to a move to a new employer, while its 57% and 59% in Asia and Europe.

Q: How does this data vary by industry?

A: Its highest in Consumer and Industrial companies (56% and 59% of leaders). These two industries also show the highest cross-industry mobility – 55% and 52% o leaders respectively would be willing to change industry. That number is closer to a third in other industries.

Q: How has this changed since last year?

A: In 2021 numbers were very high with 73% of next-gen and 61% of C-suite leaders saying they would be open to moving employer. Since 2021 was the first year we began collecting this data we don’t have a further historical comparison, but we do believe that those numbers were abnormally high and a result of the pandemic. The high levels of attrition experience by many organizations seems to be abating somewhat, however companies should not take their eye off the ball. Next-gen leaders are still a retention risk and many will still be evaluating their careers and whether their current role is giving them what they want and need.

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Talent risks: What can convince next-generation leaders to stay?

With next-generation leaders now an attrition risk, organizations need to think beyond pay to retain them. Creating clarity around growth opportunities, investing in development, and connecting them to organizational purpose will be key.

55^%

Career advancement

Better pay

To feel more valued

New responsibilities

Top reasons for next-gen leaders’ recent job moves (% Top 3 from 17 options)

44^%

31^%

27^%

RRA 2022 Global Leadership Monitor, Base n = 222 Next-Gen executives that changed jobs in last year

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Discussion Starter

“What issues are coming up in your discussions with next-gen leaders that have left or are asking questions about their careers?”

FAQ

[Note given the relatively small base size – just leaders that changed jobs – the below commentary is for next-gen leaders and c-suite leaders that changed roles]

Q: How does this data vary by region?

A: It is pretty consistent. Pay is always near the top (and that should not be a surprise) but items related to career and the quality of leadership and feeling valued also rank near the top and in all regions at least one of these items beats pay to the top spot. Key point being that while pay matters you need to think beyond it to retain and engage the best leadership talent. And that should be good news!

Q: How does this data vary by industry?

A: It is pretty consistent with some interesting variation at the margins. In FS for example Pay does top the list and by quite a wide margin. It also tops the list in INR but with a much smaller margin to the next item (career advancement). In tech “seeking a different company culture” is the second most important reasons, behind career advancement and ahead of pay.

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Helping future leaders see their path to the top.

28^%�of next-gen leaders think their organization has a successful strategy for leadership succession.

�Top actions: �

Develop and communicate succession strategies.
Adopt robust and engaging development plans.
Understand key levers for retention.

Only �

RRA 2022 Global Leadership Monitor, Base n = 565 Next-Gen executives

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In a fast-moving world, your CxOs need to help you tackle high-impact decisions in real-time

2021 Edelman Trust Barometer global report
2019 EY CEO Imperative
RRA 2022 Global Leadership Monitor (Q4 2022 Global Leadership Monitor, n = 1,690 CEOs, C-level leaders, next-generation leaders, and non-executive board directors)

of the general population believe CEOs need to respond to challenging times and lead on societal issues.¹

of CEOs do not think their C-suite is fit for the challenges of the next decade.²

of leaders say they have �a successful strategy for C-level succession.³

CEOs are expected to adeptly respond to mounting global issues…

But …

And only…

86^%

66^%

38^%

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It is time for a new approach to C-suite success

The requirements for a high-performing C-suite team have fundamentally shifted.

The Expertise Shift

It is no longer just about subject expertise. CxOs must also show behavioral agility.

The Results Shift

CxOs need to deliver more than discrete results. They must fuel enterprise-wide success.

The Individual Shift

The best CxOs are not only high-performing individuals. They are also high-performing team players.

The Culture Shift

Leadership teams must not only adapt but foster diversity and drive cultural change.

The Legacy Shift

It is not just about building the right executive team today. You also need to build your bench of CxOs for tomorrow.

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The payoff

The current moment calls for future-ready leaders who can work collaboratively with their team to deliver business success.

* Source: RRA 2018 Survey of Global C-Suite Executives

more effective at managing complex initiatives

42^%

more effective at attracting top talent

30^%

more effective at ensuring the organization’s future readiness

27^%

more effective at delivering value for stakeholders

31^%

Leaders who have high-performing C-suites say they are:

Here’s why.

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Architect

Identify strategic priorities to advance business objectives and define what successful C-suite leadership looks like for your organization

Diagnose

Identify leadership and executive team performance gaps that are stymieing innovation and desired performance

Strategize

Determine the solutions needed to enable the right and diverse leadership team and organizational culture

De-Risk

Build robust leadership pipelines and transition playbooks

Sustain

Manage culture and leadership strategies proactively as conditions change

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What kind of leadership is best to deliver on your strategy for the future?
How can the executive team and broader culture support the leadership vision?

Do you have the right leadership to support your business goals?
Does your executive teams need developing, and in what areas?
How must your organizational culture evolve?

What capabilities can a Leadership Advisory Firm leverage to help your leadership teams drive your strategy?
What skills and tools do leaders need to drive business performance?
What benchmarks can we use to monitor their development?

What is needed from future leaders to ensure your organization's continued success at all levels?
What behaviors are most important for long-term goals?

How can we monitor progress and sustain culture going forward?
How do you create adaptability within leadership frameworks?

A process built for and around C-Suite Succession

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Common (and Less Common) Experiences on the Route to the Top

A handful of specific experiences commonly appear in CFO career histories; other experiences prove surprisingly less common

Prevalence of Prominent Career Experiences Among F100 CFOs

Source: Russell Reynolds Associates.

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Three Prominent Shifts in the Route to the Top

Recent CFO appointments point to a growing appetite for finance chiefs with three core experiences

Prevalence of Specific Career Experiences Among F100 CFOs

CFOs Appointed in Last Three Years vs. �CFOs Appointed More than Three Years Ago

Source: Russell Reynolds Associates.

Appointed in Last 3 Years

Appointed More than 3 Years Ago

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Within the past decade, S&P 2000 CFOs increasingly bring financial services company experience

CFOs are moving from industrial conglomerate training grounds to more strategic career tenures in banking and private capital as more strategic CFOs come into the seat

Source: RRA analysis of CFOs at S&P 2000 companies as of 06/30/2022

*Finance Operations includes VP/SVP/EVP Finance, Deputy/Divisional CFO and FP&A roles

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Life After CFO

What’s your next move?

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CFOs are Increasingly Moving into Non-CFO Roles

As the CFO role broadens, CFOs are increasingly moving into CEO roles and COO roles

Note: 35% of Euronext 100 companies have COOs, and 30% of FTSE 350 companies. 73% of Euronext 100 companies have non-executive Chairs and 91% of FTSE 350 companies. 92% of Euronext 100 and 85% of FTSE 350 companies have ACCs.

While other C-suite roles remain unpopular.

CFOs looking to move exclusively to board or committee roles are having success with Chair and ACC roles

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