C ASSOCIATES Volatility Report 2018 · 2018 Fortune 500 and S&P 500 Companies (673 Total) –...

CRIST KOLDER|ASSOCIATES

CRIST|KOLDER ASSOCIATESVolatility Report 2018


CRIST|KOLDER Volatility Report

Table of ContentsMethodology

Report Highlights Page 5

Location Page 6

Executive Turnover Page 9

C-Suite Career Paths Page 18

Diversity Landscape Page 36

Education Background Page 44

Crist|Kolder 2018 Volatility Report1


The annual Crist|Kolder Volatility Report of America’s Leading Companiesexamines the backgrounds and measures the turnover of C-Suite executives in aportfolio of 673 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 fifteenth year of the Crist|Kolder Volatility Report, though information forthe report goes back to 1995. This Summer 2018 release of the Crist|Kolder VolatilityReport contains data through August 1, 2018.

Methodology

2


Methodology Notes• 2018 Fortune 500 and S&P 500 Companies (673 Total)

– Companies Removed from 2017: 30– Companies Added: 30– Public Companies: 644– Private Companies: 29

• Data tracked January 1, 1995 through August 1, 2018; update occurs every December

• Industries 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 websites

Color KeyBlue = CEO

Green = CFOPurple = COO

Graphs and data correspond with the color key above

Financial20.95%

Industrial15.90%

Services12.63%

Technology12.18%

Energy11.14%

Healthcare10.25%

Consumer9.51%

Retail7.43%

Company Industry Breakdown

3


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)

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

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

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

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

Partial year: Designation indicates data gathered up to August 1, 2018, not a projection

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

Definitions

4


Report Highlights• As the S&P 500 reaches historic price levels, C-Suite turnover is projected to reach an all-time high by year-end (Page 14)

• Companies are beginning to look at more outside talent when hiring a CEO (Page 15)

• The number of companies with a COO continues to decrease (Page 16)

• CEOs primarily transition from a President/COO chair or a Divisional President position (Page 19)

• C-Suite transitions from the CFO role to the CEO role have increased in 2018 (Page 21)

• Less than 20% of sitting CFOs have prior CFO experience at another company (Page 24)

• Technology sector CFOs usually have the least amount of company experience before taking their position (Page 28)

• The average age of hire for C-Suite positions has risen 15% since 2005 (Page 31)

• Less than 10% of CFOs are over 60 years of age (Page 35)

• The count of Female CFOs has reached an all-time high (Page 37)

• In both the CEO and CFO positions, diversity is at an all-time high (Page 40, 42)

• Within the United States, more CEOs attended schools in the Big Ten than in any other conference (Page 45)

• The Big Ten Conference has claimed the most sitting CFOs for more than five consecutive years (Page 47)

• 64% of CEOs have an advanced degree, while 50% of CFOs have an MBA (Pages 53, 54)

• The path to the C-Suite runs through eight leading MBA programs (Page 55)

5


Location

6


Company Headquarters by Location

2018 Fortune 500 and S&P 500 (673 Companies)

*Non-shaded (white) states have no company headquarters located within that state

7


Industry Breakdown by Region


Regions: Northeast, Midwest, South, and West as determined by the United States Census Bureau

Industrial Healthcare Services Technology Retail Energy Financial ConsumerMidwest 38.3% 20.3% 15.3% 3.7% 30.0% 16.0% 25.5% 31.3%South 25.2% 15.9% 32.9% 20.7% 40.0% 60.0% 19.1% 20.3%Northeast 22.4% 37.7% 29.4% 22.0% 14.0% 13.3% 36.2% 32.8%West 8.4% 20.3% 20.0% 48.8% 16.0% 9.3% 17.0% 12.5%Foreign 5.6% 5.8% 2.4% 4.9% 0.0% 1.3% 2.1% 3.1%

0%

10%

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100%

8


Executive Turnover

9


1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018*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%13.4%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%16.6%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%23.4%30.4%32.0%

0%

5%

10%

15%

20%

25%

30%

35%

Perc

ent T

urno

vers

COO turnover continues to increase in 2018

CEO/CFO/COO Volatility (1995-2018)2018 Fortune 500 and S&P 500 Companies (673 Companies; 679 Sitting CEOs; 670 Sitting CFOs; 215 Sitting

COOs)

*Projection of 2018 year endPartial year:CEO: 9.6%CFO: 10.9%COO: 21.9%

CEO Historical Average: 11.1%

COO Historical Average: 21.7%

CFO Historical Average: 15.1%

10


Notable CEO changes in 2018

• Cardinal Health, Inc.• Chevron Corp.• Verizon Communications, Inc.• Lowe’s Companies, Inc. • Intel Corp. • Sysco Corp. • 3M Company• American Express Company

The Industrial and Technology sectors account for the most CEO turnover*

CEO Volatility by Industry2018 Fortune 500 and S&P 500 (673 Companies)

Retail7.7%

Healthcare7.7%

Energy7.7%

Services12.3% Consumer

13.8%

Financial13.8%

Technology18.5%

Industrial18.5%

*Year to date 11


Notable CFO Changes in 2018

• CVS Health Corp.• Adobe Systems, Inc.• General Motors Company• Walgreens Boots Alliance, Inc.• Valero Energy Corp.• International Business Machines Corp.• MetLife, Inc.• HP, Inc.

The Retail sector has the lowest CFO turnover*

CFO Volatility by Industry2018 Fortune 500 and S&P 500 (673 Companies)

Retail6.8%

Services11.0%

Consumer12.3%

Healthcare12.3%

Technology13.7%

Energy13.7%

Industrial15.1%

Financial15.1%

*Year to date 12


Notable COO Changes in 2018• JPMorgan Chase & Company• Express Scripts Holding Company• Valero Energy Corp.• United Parcel Service, Inc.• Pfizer, Inc.• HP, Inc.• Northrop Grumman Corp.• Philip Morris International, Inc.

COO Volatility by Industry2018 Fortune 500 and S&P 500 (673 Companies)

The Financial sector constitutes over a third of COO turnover*

Retail4.3%

Healthcare4.3%

Technology8.5%

Consumer8.5%

Energy10.6%

Industrial12.8%

Services14.9%

Financial36.2%

*Year to date 13


1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018*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% 18.7%S&P 500 Index 542 671 873 1084 1326 1427 1192 996 964 1131 1207 1311 1477 1221 947 1139 1269 1380 1643 1931 2061 2092 2448 2706

0

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S&P

500

Inde

x

C-S

uite

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nove

r

S&P 500 Historical Average 1376.45

C-Suite turnover is projected to reach an all-time high Overall Volatility and S&P 500 Index** (1995-2018)


*Projection of 2018 year endPartial year C-Suite Turnover: 11.6%**Average Daily Close

Crist|Kolder 2018 Volatility Report

CEO/CFO/COOHistorical Average 14.4%

14


1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018*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%30.0%33.9%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%39.8%

0%

10%

20%

30%

40%

50%

60%

% E

xter

nally

Rec

ruite

d

The rate of external hiring for CEO succession is projected to reach an all-time high

Percentage of CEOs/CFOs Recruited from Outside the Company (1995-2018)2018 Fortune 500 and S&P 500 Companies (673 Companies; 679 Sitting CEOs; 670 Sitting CFOs)

*Projection of 2018 year endPartial year:CEO: 24.1%CFO: 28.8%

Crist|Kolder 2018 Volatility Report

CEO Historical Average: 21.5%

CFO Historical Average: 38.6%

15


The number of companies with a COO has decreased by almost 15% in the last ten years

Percentage of Companies with a COO (2000-2018*)2018 Fortune 500 and S&P 500 (673 Companies; 215 Sitting COOs)

*Partial Year

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018*% 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% 33.0% 31.5%

0%

5%

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15%

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25%

30%

35%

40%

45%

50%

55%

16


The COO role is least common within the Technology sector

Percentage of Companies with a COO by Industry2018 Fortune 500 and S&P 500 Companies (673 Companies; 215 Sitting COOs)

Financial Services Retail Consumer Energy Industrial Healthcare Technology% With COO 43.0% 36.5% 34.2% 30.3% 31.1% 25.2% 24.6% 22.6%

0%

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45%

50%

17


C-Suite Career Paths

18


Over 75% of Sitting CEOs were elevated from general management roles

Immediate Previous Position of Sitting CEOs (Internal or External)2018 Fortune 500 and S&P 500 (673 Companies; 679 Sitting CEOs)

19

• Internal Divisional President includes CEO of subsidiary company

• President/COO: Executive held both President and COO roles at the same time

• Operations Executive: VP/SVP/EVP of Operations• Other: i.e. chairman, marketing, risk, consulting,

commerce, investment officer, partner, managing director, general counsel

DivisionalPresident COO President CFO President/COO CEO Other Operaring

Executive Founder

% fromPosition 27.0% 26.5% 16.3% 6.8% 6.5% 6.3% 4.1% 3.8% 2.7%

0%

5%

10%

15%

20%

25%

30%


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

Immediate Previous Position of Sitting CEOs (Internal vs. External)2018 Fortune 500 and S&P 500 (673 Companies; 679 Sitting CEOs)

20

• Internal Divisional President includes CEO of subsidiary company

• President/COO: Executive held both President and COO roles at the same time

• Operations Executive: VP/SVP/EVP of Operations• Other: i.e. chairman, marketing, risk, consulting,

commerce, investment officer, partner, managing director, general counsel

DivisionalPresident COO President CFO President/COO CEO Other Operaring

Executive Founder

External 8.0% 1.2% 0.6% 0.3% 0.0% 6.3% 0.4% 1.0% 0.0%Internal 19.0% 25.3% 15.8% 6.5% 6.5% 0.0% 3.7% 2.8% 2.7%

0%

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25%

30%


C-Suite transitions from the CFO role to the CEO role have increased in 2018

Percentage of Sitting CEOs coming directly from a CFO Chair (Internal or External)2018 Fortune 500 and S&P 500 (673 Companies; 679 Sitting CEOs)

2012 2013 2014 2015 2016 2017 2018% from CFO Role 5.6% 5.8% 6.2% 6.5% 7.8% 6.2% 6.9%

0%

1%

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3%

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5%

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7%

8%

9%

21


CFO movement to the CEO position is most prominent in the Financial sector

Percentage of Sitting CEOs coming from a CFO Chair by Industry (Internal or External)2018 Fortune 500 and S&P 500 (673 Companies; 679 Sitting CEOs; 46 CEOs Represented)

Financial Industrial Technology Services Energy Consumer Healthcare Retail% from CFO 28.3% 17.4% 17.4% 10.9% 10.9% 8.7% 4.3% 2.2%

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30%

22


CEOs in the Financial sector hold the most Chairman titles

Sitting CEOs that are also Chairman*2018 Fortune 500 and S&P 500 (673 Companies; 679 Sitting CEOs; 287 Sitting CEOs that are also Chairman)

* Sitting Chairman of their current company

Financial Industrial Services Energy Healthcare Consumer Technology RetailCEO and Chairman 63 47 42 37 32 31 22 13

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23


Less than 20% of sitting CFOs have prior CFO experience at another company

Percentage of Sitting CFOs by Immediate Previous Position (Internal or External)2018 Fortune 500 and S&P 500 (673 Companies; 670 Sitting CFOs)

CFO

CorporateController /

ChiefAccounting

Officer

CorporateFinance Treasurer Divisional

CFO

DivisionalPresident/OperationsExecutive

Strategy/M&A Other President/

COOInvestorRelations CEO

ChiefAdministrative

Officer

% from Position 18.5% 18.4% 16.9% 11.3% 10.8% 8.9% 6.8% 4.1% 2.0% 1.4% 0.6% 0.5%

0%

2%

4%

6%

8%

10%

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16%

18%

20%

24

•Internal Divisional Finance Officer 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/M&A: Investment Banking, Development, Planning or Strategy•Other: tax, law, IT, risk, consulting, etc.


Internally promoted CFOs most often transition from the Corporate Controller or Chief Accounting Officer role

•Internal Divisional Finance Officer 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/M&A: Investment Banking, Development, Planning or Strategy•Other: tax, law, IT, risk, consulting, etc.

Percentage of Sitting CFOs by Immediate Previous Position (Internal or External)2018 Fortune 500 and S&P 500 (673 Companies; 670 Sitting CFOs)

CFO

CorporateController /

ChiefAccounting

Officer

CorporateFinance Treasurer Divisional

CFO

DivisionalPresident/OperationsExecutive

Strategy/M&A Other President/

COOInvestorRelations CEO

ChiefAdministrative

Officer

External 18.5% 2.3% 1.7% 0.8% 3.0% 1.8% 1.4% 1.7% 0.9% 0.5% 0.45% 0.0%Internal 0.0% 16.1% 15.1% 10.5% 7.8% 7.1% 5.4% 2.4% 1.1% 0.9% 0.15% 0.5%

0%

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4%

6%

8%

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18%

20%

N/A

25


Only 39% of CFOs have public accounting experience

2018 CFOs with Public Accounting Backgrounds2018 Fortune 500 and S&P 500 (673 Companies; 670 Sitting CFOs; 261 CFOs Represented*)

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

26Crist|Kolder 2018 Volatility Report

31

34

35

50

66

0 10 20 30 40 50 60 70

CFO Public Accounting StatisticsTotal Sitting CFOs: 670

Public Accounting Background: 261Percentage of Total CFOs: 39%

Big Five Firm Background: 211Percentage of Total CFOs: 31.4%

Non-Big Five Firm Background: 50Percentage of Total CFOs: 7.5%


12% of CFOs have investment banking experience2018 CFOs with Investment Banking Backgrounds

2018 Fortune 500 and S&P 500 (673 Companies; 84 CFOs Represented*)

*Multiple CFOs have worked for more than one investment bank

Goldman Sachs

Merrill Lynch (Bank of America)

J.P. Morgan Chase & Co.

Morgan Stanley

Deutsche Bank

UBS 5

7

9

13

15

16

0 2 4 6 8 10 12 14 16 18

27

CFO Investment Banking Statistics

Total Sitting CFOs: 670

Investment Banking Background: 83Percentage of Total CFOs: 12.3%


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

Average Years of Experience with Company before assuming Roles of CEO/CFO/COO at that Company*2018 Fortune 500 and S&P 500 (673 Companies; 558 Internal CEOs Hires; 450 Internal CFO Hires; 192 Internal COO Hires)

Average Retail Healthcare Energy Consumer Services Technology Financial IndustrialCEO 13.6 15.5 10.5 14.2 14.6 12.6 10.7 14.2 15.7CFO 11.2 10.4 11.6 11.2 12.7 11.6 9.4 10.4 11.8COO 14.3 15.9 11.8 15.4 13.8 14.8 14.9 13.1 16.8

0

2

4

6

8

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12

14

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18

Year

s

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


9.54

7.97

7.266.97 6.96

5.65 5.555.22

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9

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Financial Retail Technology Healthcare Services Energy Consumer Industrial

Tenu

re (Y

ears

)

Financial sector CEOs have the longest tenure

Average Tenure of CEO by Industry2018 Fortune 500 and S&P 500 (673 Companies; 679 Sitting CEOs)

Longest Tenured CEO

Leslie Wexner –L Brands, Inc. (54.6 Years)

Average CEO Tenure:6.5 years

29


5.91 5.835.46

5.134.75

4.44 4.40

3.89

0

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2

3

4

5

6

7

Retail Financial Industrial Services Consumer Technology Energy Healthcare

Tenu

re (Y

ears

)

The average tenure of a CFO is over 5 years

Average Tenure of CFO by Industry2018 Fortune 500 and S&P 500 (673 Companies; 670 Sitting CFOs)

Jeffrey Julien –Raymond James Financial, Inc. (31.3 Years)

Longest Tenured CFO

Average CFO Tenure: 5.1 years

30


The C-Suite is getting olderAge of Hire for CEOs and CFOs

2018 Fortune 500 and S&P 500 (673 Companies; 674 Known CEO Ages at Hire; 660 Known CFO Ages at Hire)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018CEO 45.9 49.2 47.2 46.5 48.1 49.7 50.4 52.6 51.3 51.8 51.5 52.2 54.0 53.4CFO 44.0 43.7 42.8 43.8 46.0 46.7 46.4 47.6 48.6 47.5 48.1 49.0 49.0 49.3

38

40

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48

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56

Ave

rage

Age

of H

ire

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Nearly 25% of CEOs were appointed to their position before 45

Age of Hire for Sitting CEOs2018 Fortune 500 and S&P 500 (673 Companies; 679 Sitting CEOs; 674 Known CEO Ages at Hire)

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18 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 73Age

Male Female

Age at Hire of Sitting CEOs

Youngest Male(s): Mark Zuckerberg –Facebook, Inc. (19)

Youngest Male(s): Michael Dell –Dell Technologies (19)

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

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

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

32


Nearly 75% of Female CEOs are 55 and older

Age Distribution of Sitting CEOs2018 Fortune 500 and S&P 500 (673 Companies; 679 Sitting CEOs; 674 Known CEO Ages)

0

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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 77 78 79 80 81 82 83 84 85 86 87Age

Male Female

Average Age of Sitting CEOs

Male: 57

Female: 56

Age Range of Sitting CEOs

Youngest Male: Mark Zuckerberg –Facebook, Inc. (34)

Oldest Male: Warren Buffett –Berkshire Hathaway, Inc. (87)

Youngest Female: Joey Wat– Yum China Holdings, Inc. (46)

Oldest Female: Marillyn Hewson–Lockheed Martin Corporation (64)

33


Over 60% of newly appointed CFOs were younger than 50

Age of Hire of Sitting CFOs2018 Fortune 500 and S&P 500 (673 Companies; 670 Sitting CFOs; 660 Known CFO Ages at Hire)

0

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45

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 66Age

Male Female

Youngest Male: David Knopf –Kraft Heinz Company. (29)

Oldest Male: Joseph Macnow –Vornado Realty Trust (66)

Youngest Female: Karla Lewis –Reliance Steel & Aluminum Co. (33)

Oldest Female(s): Christine McCarthy –Walt Disney Co.(60)

Age at Hire of Sitting CFOs

34


Less than 10% of CFOs are over 60 years of age

Age Distribution of Sitting CFOs2018 Fortune 500 and S&P 500 (673 Companies; 670 Sitting CFOs; 660 Known CFO Ages)

0

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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 74 75Age

Male Female

Average Age of Sitting CFOs

Male: 53

Female: 52

Age Range of CFOs

Youngest Male: David Knopf –Kraft Heinz Company. (30)

Oldest Male: Walter Berman –Ameriprise Financial, Inc. (75)

Youngest Female: Céline Dufétel –T. Rowe Price Group. (35)

Oldest Female(s): Virginia Wilson –TIAA CREF (64)

35


Diversity Landscape

36


The number of Female CFOs has reached an all-time highPercentages of Companies with Female CEOs or CFOs (2004-2018)

2018 Fortune 500 and S&P 500 (673 Companies; 679 Sitting CEOs; 670 Sitting CFOs)

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018CEO 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% 5.2% 4.6%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% 12.5%

0%

2%

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6%

8%

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12%

14%

37


The population of Female CEOs has more than doubled in the last ten yearsNumber of Companies with Female CEOs by Industry (2004-2018)2018 Fortune 500 and S&P 500 (673 Companies; 679 Sitting CEOs)

38

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Financial 1 1 3 3 3 3 2 4 4 4 5 5 5 7 7Energy 0 0 0 0 0 0 0 1 2 3 3 3 5 6 5Technology 4 2 2 2 2 2 2 4 5 5 7 5 5 5 4Industrial 1 1 1 1 1 2 2 3 4 5 6 5 5 5 4Services 2 2 2 1 0 0 0 0 0 1 2 2 1 2 3Retail 1 1 1 2 2 2 1 1 1 2 3 3 2 2 3Consumer 0 1 4 4 4 4 4 5 5 4 5 4 4 6 3Healthcare 0 0 0 1 1 1 1 1 2 1 1 1 1 2 2Total 9 8 13 14 13 14 12 19 23 25 32 28 28 35 31

9 8

13 14 13 1412

19

2325

32

28 28

35

31

0

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Fem

ale

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The Financial sector has the most Female CFOs

Number of Companies with Female CFOs by Industry (2004-2018)2018 Fortune 500 and S&P 500 (673 Companies; 670 Sitting CFOs)

39

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Financial 3 4 4 2 8 11 12 13 11 10 10 13 14 15 20Consumer 2 4 4 6 4 5 5 9 8 11 12 14 16 13 14Industrial 8 7 6 8 7 7 7 9 9 10 11 14 11 10 12Services 5 5 6 7 7 6 6 7 7 7 8 9 10 12 11Technology 8 10 9 11 9 8 8 9 10 12 11 11 9 10 9Energy 2 3 5 5 4 9 9 10 10 8 7 7 8 6 8Retail 2 3 2 2 2 3 2 2 3 4 5 6 7 7 7Healthcare 5 5 3 4 5 6 6 5 5 5 6 6 7 5 3Total 35 41 39 45 46 55 55 64 63 67 70 80 82 78 84

3541 39

45 46

55 55

64 6367

70

80 8278

84

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CFO

s


2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Hispanic / Latino 9 9 7 9 9 9 9 10 12 13 12 14 18 17 18African American 6 4 5 6 6 6 5 6 6 7 6 6 7 6 5Asian / Indian 12 14 14 15 15 15 16 18 18 18 23 27 28 29 30Total 27 27 26 30 30 30 30 34 36 38 41 47 53 52 53

27 27 26

30 30 30 30

3436

3841

47

53 52 53

0

10

20

30

40

50

60

Ethn

ical

ly a

nd R

acia

lly D

iver

se C

EOs

Diversity in the CEO role is at an all-time highNumber of Companies with Ethnically and Racially Diverse CEOs (2004-2018)

2018 Fortune 500 and S&P 500 (673 Companies; 679 Sitting CEOs)

40

525152

52 51 52

17 16 17


2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Technology 8 8 8 8 7 9 9 10 11 11 13 13 14 16 17Industrial 1 1 1 2 2 2 2 2 2 3 4 5 7 7 7Services 3 5 5 6 5 5 5 5 5 5 4 6 8 6 6Financial 5 4 4 5 7 5 6 8 8 8 8 8 7 7 6Healthcare 3 3 3 3 3 3 2 4 6 6 6 6 6 6 6Consumer 5 5 4 5 5 5 5 5 4 5 5 6 7 6 6Energy 2 1 1 1 1 1 1 0 0 0 1 2 3 3 3Retail 0 0 0 0 0 0 0 0 0 0 0 1 1 1 2Total 27 27 26 30 30 30 30 34 36 38 41 47 53 52 53

27 27 2630 30 30 30

3436

3841

47

53 52 53

0

10

20

30

40

50

60

Ethn

ical

ly a

nd R

acia

lly D

iver

se C

EOs

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

Number of Companies with Ethnically and Racially Diverse CEOs by Industry (2004-2018)2018 Fortune 500 and S&P 500 (673 Companies; 679 Sitting CEOs)

4152 51 52

52 51 52

556


Diversity in the CFO role is at an all-time highNumber of Companies with Ethnically and Racially Diverse CFOs (2004-2018)

2018 Fortune 500 and S&P 500 (673 Companies; 670 Sitting CFOs)

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Hispanic / Latino 6 6 5 5 5 7 9 10 9 8 11 11 11 12 12African American 4 4 4 5 6 5 5 5 4 4 6 7 9 11 11Asian / Indian 8 10 7 8 11 9 9 10 11 14 17 21 23 27 30Total 18 20 16 18 22 21 23 25 24 26 34 39 43 50 53

1820

1618

22 2123

25 2426

34

39

43

5053

0

10

20

30

40

50

60

Ethn

ical

ly a

nd R

acia

lly D

iver

se C

FOs

42


The Financial and Technology sectors are diversity leaders at the CFO position

Number of Companies with Ethnically and Racially Diverse CFOs by Industry (2004-2018)2018 Fortune 500 and S&P 500 (673 Companies; 670 Sitting CFOs)

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Financial 5 4 4 4 4 3 3 4 3 3 5 7 9 9 10Technology 0 1 1 3 2 1 1 1 3 2 5 6 6 9 10Industrial 1 1 1 1 2 2 2 2 3 4 5 6 6 8 8Energy 0 1 1 1 2 2 3 3 2 2 4 6 5 6 6Consumer 3 4 2 2 3 5 5 5 4 4 4 4 6 6 7Services 4 4 3 3 3 2 3 4 3 5 6 5 5 5 5Healthcare 4 4 3 3 5 5 5 5 5 5 5 5 6 6 5Retail 1 1 1 1 1 1 1 1 1 1 0 0 0 1 2Total 18 20 16 18 22 21 23 25 24 26 34 39 43 50 53

1820

1618

22 2123

25 2426

34

3943

5053

0

10

20

30

40

50

60

Ethn

ical

ly a

nd R

acia

lly D

iver

se C

FOs

43


Education Background

44


15

17

21

25

33

37

46

57

80

83

0 10 20 30 40 50 60 70 80 90

Harvard University

University of Pennsylvania

University of Michigan

Stanford University

Pennsylvania State University

Cornell University

More CEOs come from the Big Ten Conference than any other U.S. conference

Sitting CEO Undergraduate University Conference Affiliation2018 Fortune 500 and S&P 500 Companies (679 Sitting CEOs; 651 Known Education Backgrounds)

15

10

10

9

9

9

Top Schools CEOs

International

Big Ten Conference

Ivy League

Atlantic Coast Conference

Southeastern Conference

Pacific 12 Conference

Patriot League

Big 12 Conference

NESCAC

Mid-American Conference

45


Canada and the United Kingdom are home to the most sitting CEOs of all foreign countries in this study

Top Five International Degree Producing Countries for Sitting CEOs2018 Fortune 500 and S&P 500 Companies (679 Sitting CEOs; 651 Known Education Backgrounds)

7

7

8

10

10

0 2 4 6 8 10 12

Canada

United Kingdom

France

Australia

India

46


21

21

23

29

33

33

44

58

59

79

0 10 20 30 40 50 60 70 80 90

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

Sitting CFO Undergraduate University Conference Affiliation2018 Fortune 500 and S&P 500 Companies (670 Sitting CFOs; 637 Known Education Backgrounds)

University of Notre Dame


Indiana University


Stanford University

Harvard University

14

13

11

10

10

10

Top Schools CFOs

Big Ten Conference

International

Atlantic Coast Conference

Ivy League

Pacific 12 Conference

Southeastern Conference

Big 12 Conference

Mid-American Conference

American Athletic Conference

Patriot League

47


3

3

5

8

9

15

0 2 4 6 8 10 12 14 16

Canada is home to the most sitting CFOs of all foreign countries in this study

Top Five International Degree Producing Countries for Sitting CFOs2018 Fortune 500 and S&P 500 Companies (670 Sitting CFOs; 637 Known Education Backgrounds)

Canada

United Kingdom

India

France

Germany

Australia

48




University of Virginia

Michigan State University

University of Wisconsin

Top Public Schools CEOs

Harvard University


Stanford University

Cornell University

Princeton University

Top Private Schools CEOs

Public universities currently produce the most sitting CEOs

Sitting CEO Undergraduate University2018 Fortune 500 and S&P 500 Companies (679 Sitting CEOs; 651 Known Education Backgrounds)

15

10

9

9

8

10

9

8

8

8

Public347

Private291

49


Indiana University


University of Texas – Austin


University of Virginia

Top Public Schools CFOs

University of Notre Dame


Stanford University

Harvard University

Boston College

Top Private Schools CFOs

Public universities currently produce the most sitting CFOs

Sitting CFO Undergraduate University2018 Fortune 500 and S&P 500 Companies (670 Sitting CFOs; 637 Known Education Backgrounds)

15

14

10

9

6

13

11

10

9

8

Public358

Private277

50


Business Adminstration

39.80%

Accounting28.57%

Finance16.33%

Other15.31%****

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

Percentage of CEOs from each Educational Background 2018 Fortune 500 and S&P 500 (673 Companies; 679 Sitting CEOs; 651 Known Education Backgrounds)

EngineeringEconomics Business Administration Accounting Finance

Top Majors CEOs

*Accounting, Business Administration/Management, Finance, Other**Economics is included in Liberal Arts***Mathematics is included in Sciences****Marketing, International Business, Commerce, Logistics

15295816533

Business36.70%*

Engineering26.40%

Liberal Arts20.97%**

Dual 8.05%

Sciences7.87%***

51


Accounting49.03%

Business Administration

21.36%

Finance20.39%

Other8.25%

****

65% of CFOs have an undergraduate degree in Business

Percentage of CFOs from each Educational Background 2018 Fortune 500 and S&P 500 (673 Companies; 670 Sitting CFOs; 637 Known Education Backgrounds)

AccountingEconomics Business Administration Finance Engineering

Top Majors CFOs

*Accounting, Business Administration/Management, Finance, Other**Economics is included in Liberal Arts***Mathematics is included in Sciences****Marketing, International Business, Commerce, Logistics

202101888440

Business 65.73%*

Liberal Arts18.80%**

Engineering7.21%

Dual 4.22%Sciences 4.04%***

52


Average Consumer Energy Retail Technology Services Healthcare Financial IndustrialBachelor's 36.1% 39.7% 38.0% 48.4% 35.4% 47.8% 25.0% 31.7% 31.3%MBA 44.7% 47.1% 46.5% 41.9% 36.6% 35.9% 46.9% 46.8% 53.5%Master's 8.5% 8.8% 8.5% 6.5% 14.6% 5.4% 9.4% 7.9% 7.1%JD 5.9% 1.5% 1.4% 3.2% 2.4% 9.8% 6.3% 11.5% 4.0%PhD 4.8% 2.9% 5.6% 0.0% 11.0% 1.1% 12.5% 2.2% 4.0%

0%

10%

20%

30%

40%

50%

60%

64% of CEOs possess an advanced degree

CEO Terminal Degree Educational Background2018 Fortune 500 and S&P 500 (673 Companies; 679 Sitting CEOs; 651 Known Education Backgrounds)

53

Bach

elor

’sM

BA

Bach

elor

’s

Bach

elor

’s

Bach

elor

’s

Bach

elor

’s

Bach

elor

’s

Bach

elor

’s

Bach

elor

’s

Bach

elor

’s

MBA

MBA

MBA

MBA

MBA

MBA

MBA

MBA

Overall


54

Average Consumer Energy Retail Technology Services Healthcare Financial IndustrialBachelor's 40.0% 38.9% 37.1% 39.4% 33.3% 44.6% 37.1% 42.2% 42.4%MBA 48.6% 51.4% 52.9% 57.6% 53.1% 45.7% 48.4% 40.6% 50.5%Master's 7.5% 5.6% 7.1% 3.0% 9.9% 5.4% 11.3% 9.4% 6.1%JD 3.1% 4.2% 2.9% 0.0% 2.5% 3.3% 3.2% 5.5% 1.0%PhD 0.8% 0.0% 0.0% 0.0% 1.2% 1.1% 0.0% 2.3% 0.0%

0%

10%

20%

30%

40%

50%

60%

70%

Overall

Bach

elor

’sM

BA

Bach

elor

’s

Bach

elor

’s

Bach

elor

’s

Bach

elor

’s

Bach

elor

’s

Bach

elor

’s

Bach

elor

’s

Bach

elor

’s

MBA M

BA

MBA

MBA

MBA M

BA

MBA

MBA

50% of CFOs hold an MBA degree

CFO Terminal Degree Educational Background2018 Fortune 500 and S&P 500 (673 Companies; 670 Sitting CFOs; 637 Known Education Backgrounds)


8

12

16

12

15

17

35

23

6

6

10

16

14

14

12

45

Number of CEOs Number of CFOs

The path to the C-Suite runs through eight leading MBA programsTop MBA Schools

2018 Fortune 500 and S&P 500 (673 Companies; 651 CEO and 637 CFO Known Education Backgrounds)

55

Harvard University

Stanford University

Northwestern University


University of Chicago

Columbia University

New York University


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