PWC Etude2015 Ceo Success Study

April 2016
Briefing Document
2015 CEO Success

study
Global findings
About the 2015 CEO Success study
Strategy&, PwCs strategy consulting business, annual study of worldwide CEO

succession patterns examines the degree, nature, and geographic distribution of
chief executive changes among the world's 2,500 largest public companies.
The Rise of the Outsider CEO
Hiring an executive from outside a company to serve as chief executive officer
used to be seen as a last resort something that typically happened when a
board of directors had to force out the incumbent CEO suddenly, or had failed to
groom a suitable successor, or both. Over the last several years, however, more
companies have deliberately chosen an outsider CEO, more often than not as
part of a planned succession. In this years report, we look at the data on
outsider CEOs and the circumstances in which outsiders are being hired. In
addition we have our annual analysis on CEO turnover, the 2015 incoming class
of CEOs, and women CEOs
Strategy& | PwC
April 2016
Outsider CEO summary
Companies are now making a deliberate choice in their succession planning to bring in outsider
CEOs. In the latest four-year period (201215 boards chose outsiders in 22 percent of planned
turnovers, up from 14 percent in 20042007. That represents a 50 percent increase in the rate of
outsider selection.
Industries experiencing the most disruption have brought in higher-than-average shares of
outsider CEOs. These industries include telecommunications (38% incoming outsider CEOs from 2012
to 2015), utilities (32%), healthcare (29%), and energy (28%).
Outsider CEOs were more likely to be hired if
the:
Outsider CEOs were less likely to be hired if

the:
Company was low performing
Chairman was hiring their first CEO at the

company
Chairman did not have CEO experience in the

same company
Former CEO was also an outsider
Former CEO had a long tenure

Company was large
Outsider CEOs have closed the performance gap with insiders. For the third straight year, outsider
CEOs have delivered higher median total shareholder returns than insiders.
Western European companies in general are hiring outsiders more reactively than proactively.
Western European companies hire almost double the share of outsider CEOs compared with
companies in the U.S./Canada. Additionally, outsider CEOs in Western Europe are significantly more
likely to be appointed to low-performing companies and more likely to be forced out.
Strategy& | PwC
April 2016
More outsider CEOs now come in via planned successions,

showing that hiring an outsider is more of a deliberate
choice than a necessity
Incoming outsider CEOs by turnover type
20042015
Forced turnover
Planned turnover
26%
42%
57%
74%
58%
43%
20042007
20082011
20122015
Note: Exhibit excludes turnover events resulting from M&A, interims, and events with incomplete information.
Source: Strategy& 2015 CEO Success study
Strategy& | PwC
April 2016
Outsiders now account for more than a fifth of all CEOs hired
via planned turnovers
Incoming CEOs via forced turnover
by insider/outsider pedigree
Incoming CEOs via planned turnover

by insider/outsider pedigree
20042015
20042015
Incoming insider CEO
Incoming outsider CEO
68%
32%
20042007
67%
33%
20082011
65%
86%
83%
78%
14%
17%
22%
20042007
20082011
20122015
35%
20122015
Strategy& | PwC
April 2016
Western European companies hire outsider CEOs almost

twice as frequently as companies in the U.S./Canada
Percentage of incoming outsider CEOs by region
20042015
20042007
38%
36%
32%
27%
25%
21% 21%
20122015
35%
30%
24%
20082011
30%
30%
26%
23%
21% 20%
18%
17%
14% 14%
9%
3% 2% 4%
Global
Brazil,
Russia, India
Other Mature1)
Western Europe Other Emerging2)
U.S./Canada
China
Japan
1) "Other Mature" economies include Argentina, Australia, Bahrain, Chile, Czech Republic, Hong Kong, Hungary, New Zealand, Poland, Korea.
2) Other Emerging" economies include Egypt, Kazakhstan, Mexico, Nigeria, South Africa, Turkey, Vietnam.
Note 1: "Mature" countries are defined as per the U.N. Development Programme 2015 ranking of countries with "very high human development" (human development index >0.80);
all others are "emerging countries.
Note 2: Exhibit excludes turnover events resulting from M&A, interims, and events with incomplete information.
Strategy& | PwC
April 2016
Industries experiencing the most disruption have brought in

higher-than-average shares of outsider CEOs
Percentage of incoming outsider CEOs by industry
20042015
20042007
20082011
20122015
38%
32%
29%
21%
21%
29%
25%
24%
22%
28%
23%
20%
Telecommunication
Services
Utilities
Healthcare
26% 26%
21%
25%
24%
21%
18%
Cross
Industry
26%
24%
Energy
19%
17%
Consumer
Staples
15%
Financial
Services
21%
19%
20%
23%
21%
19%
15% 15%
15%
Industrials
Consumer
Discretionary
Materials
Information
Technology
1) "Consumer Discretionary" includes automobiles and components, consumer durables and apparel, consumer services, media, and retailing.
Strategy& | PwC
April 2016
Low-performing companies were more likely to hire outsider

CEOs than high-performing companies, except in forced
turnovers
Percentage of incoming outsider CEOs by company performance and turnover type
20042015
Low-performing companies1)
36%
38%
30%
High-performing companies
High-performing companies were more likely

to hire outsider CEOs in forced turnovers
because those forced turnovers were most
often due to board/shareholder struggles or
ethical lapses.
26%
22%
18%
Forced and planned turnovers
Forced turnovers
Planned turnovers
1) Low-performing companies are defined as companies whose annualized regionally adjusted total shareholder returns were in the bottom quartile over their outgoing CEO's
tenure. High-performing companies are defined as companies whose annualized regionally adjusted total shareholder returns were in the top quartile over their outgoing CEO's
tenure.
Strategy& | PwC
April 2016
Low-performing Western European companies were much

more likely to hire an outsider CEO in forced turnover
situations than companies in the U.S./Canada
Percentage of incoming outsider CEOs by company performance and turnover type
20042015
Low-performing companies1)
Forced and planned turnovers
Planned turnovers
High-performing companies
Forced turnovers
55%
51%
47%
42%
36%
32%
30%
32%
20%
34%
33%
31%
29%
26%
22%
40%
38%
18%
27%
26%
26%
25%
18%
13%
Global
Western
Europe
BRIC/Other U.S./Canada
Emerging2)
Global
Western
Europe
U.S./Canada BRIC/Other
Emerging
Global
Western
Europe
U.S./Canada BRIC/Other
Emerging
1) Low-performing companies are defined as companies whose annualized regionally adjusted total shareholder returns were in the bottom quartile over their outgoing CEO's
tenure. High-performing companies are defined as companies whose annualized regionally adjusted total shareholder returns were in the top quartile over their outgoing
CEO's tenure.
2) BRIC/Other Emerging" economies include Brazil, Russia, India, China, Egypt, Kazakhstan, Mexico, Nigeria, South Africa, Turkey, Vietnam.
Note 2: Exhibit excludes turnover events resulting from M&A, interims, and events with incomplete information.
Strategy& | PwC
April 2016
Outsider CEOs were more likely to be hired if the chairman

did not have CEO experience in the same company or if the
former CEO was also an outsider
Incoming CEO pedigree by outgoing
CEO pedigree
Incoming CEO pedigree by chairman

pedigree
20042015
20092015
If the outgoing CEO was also

an outsider, 36% of the time
they were replaced with
another outsider CEO.
82%
18%
Outgoing insider CEO
If the chairman did not have

CEO experience in the same
company, an outsider was
hired 28% of the time.
64%
84%
36%
Outgoing outsider CEO
72%
16%
28%
Chairman had previous

CEO experience in the
same company
Chairman did not have

previous CEO experience
in the same company
Strategy& | PwC
April 2016
Chairmen who are hiring their first CEO at the company are
less likely to appoint an outsider CEO unless the former CEO
was also an outsider
Percentage of incoming outsider CEOs by whether it was the chairmans first CEO
appointment at the company and former CEO pedigree
20092015
Chairmans first CEO appointment at the company
Not chairmans first CEO appointment at the company
New chairmen are more likely to stick with

the pedigree of the former CEO while
experienced chairmen seem to ignore the
pedigree of the former CEO. They choose
perhaps more rationally as they know the
company and its leaders better.
27%
26%
38%
26%
20%
15%
Outgoing insider or outsider CEO
Strategy& | PwC
April 2016
10
The longer the tenure of the former CEO, the less likely an
outsider CEO was to be hired
Incoming CEO pedigree by tenure of former CEO
20042015
An outsider CEO was hired 28%

of the time if the former CEO
had a tenure of 0-4 years.
72%
28%
0-4 years

79%
83%
21%
17%
4-8 years
8+ years
Strategy& | PwC
April 2016
11
The larger the company, the less likely it was to hire an

outsider CEO
Incoming CEO pedigree by market
cap quartile
Incoming CEO pedigree by # of

employees quartile
20042015
20092015

72%
72%
75%
28%
28%
25%
Smallest
market cap
quartile1)
Second
market cap
quartile
Third market
cap quartile
84%
16%
Largest
market cap
quartile
70%
75%
79%
83%
30%
25%
21%
17%
Smallest
employee
quartile2)
Second
employee
quartile
Third
employee
quartile
Largest
employee
quartile
1) Market cap quartile was based on company ranking in worlds 2,500 largest. Companies ranked 1,8762,500 were in the smallest quartile. Companies ranked 1625 were in the
largest quartile. Largest market cap quartile companies had a market cap value in 2015 of more than US$19.7 billion.
2) Smallest employee quartile companies had 126,109 employees. Companies in the largest employee quartile had 41,2782,200,000 employees.
Strategy& | PwC
April 2016
12
More recently, companies have been hiring outsider CEOs

with more industry and CEO experience
Incoming outsider CEO from same or
different prior industry1) compared with
current company industry, 20042015
43%
57%
2012
37%
63%
2013
Incoming outsider CEO with prior public

CEO experience
20092015
Different industry
No public CEO experience
Same industry
Has public CEO experience
30%
70%
2014
35%
74%
71%
26%
29%
2009
2010
63%
77%
71%
65%
59%
65%
2015
37%
23%
2011
2012
29%
2013
35%
2014
41%
2015
1) Exhibit shows incoming CEOs who joined their company as CEO, broken down by whether they had worked in the same or a different industry immediately before joining the
current company.
Strategy& | PwC
April 2016
13
In 2015, in the largest companies, 60% of incoming outsider

CEOs had previous public CEO experience
Incoming outsider CEO prior public CEO experience by market cap quartile
2015
No public CEO experience

Has public CEO experience
50%
70%
70%
50%
30%
40%
60%
30%
Smallest market cap quartile Second market cap quartile
Third market cap quartile
Largest market cap quartile
1) Market cap quartile was based on company ranking in worlds 2,500 largest. Companies ranked 1,8762,500 were in the smallest quartile. Companies ranked 1625 were in the
largest quartile. Largest market cap quartile companies had a market cap value in 2015 of more than US$19.7 billion.
Strategy& | PwC
April 2016
14
Outsider CEOs were more likely than insiders both to have

international experience and be of different nationality than
their company HQ region
Incoming CEO experience1) in different
regions compared to company HQ region
Incoming CEO nationality compared with

company HQ region
20122015
20092015
Has not worked in other regions
Different country, different region
Has worked in other regions
Different country, same region

Same
10%
5%
68%
17%
10%
54%
86%
73%
46%
32%
1) Experience in different regions means incoming CEOs experience in regions other than company HQ region.
Strategy& | PwC
April 2016
15
The financials industry hired almost all its outsider CEOs

from its own industry
Incoming outsider CEO from same or different prior industry1) compared to current
company industry
20042015
Different prior industry
Same prior industry
8%
23%
25%
37%
30%
36%
42%
44%
56%
59%
72%
92%
77%
75%
63%
70%
64%
58%
56%
44%
41%
28%
Cross Industry
Financial Telecommunication Healthcare

Services
Services
Energy
Consumer
Staples
Information
Technology
Materials
Industrials
Consumer
Discretionary2)
Utilities
1) Exhibit shows incoming CEOs who joined their company as CEO, broken down by whether they had worked in the same or different industry immediately before joining the
current company.
Strategy& | PwC
April 2016
16
Historically, outsider CEOs were much more likely to be

forced out than insiders, but the difference has narrowed
Outgoing outsider CEOs by turnover type
Outgoing insider CEOs by turnover type
20042015
20042015
Merger and acquisition

Forced turnover
Planned turnover
12%
39%
14%
10%
13%
21%
31%
21%
64%
59%
20122015
20042007
16%
32%
49%
52%
20042007
20082011
66%
20082011
11%
16%
73%
20122015
Note: Exhibit excludes turnover events with incomplete information.

Strategy& | PwC
April 2016
17
Outgoing outsider CEOs have had longer median tenures

than insider CEOs over the last two years
Outgoing CEO median tenure by pedigree
20042015
Years
6.0
6.0
5.9
5.8
5.8
5.6
5.5
5.2
5.2
5.3
5.2
5.0
5.0
4.8
4.8
5.1
4.8
4.7
4.6
5.0
5.0
4.8
4.5
4.0
4.0
4.0
3.7
0.0
2004
2005
2006
2007
2008
3.5
2009
2010
2011
2012
2013
2014
2015

Strategy& | PwC
April 2016
18
For the third straight year, outsider CEOs have delivered

higher median total shareholder returns than insiders
Median total shareholder returns1) by outgoing CEO pedigree
20002015

Regionally adjusted
annualized TSR
One reason we believe outsiders are performing better is that the

outgoing CEOs over the last three years include a higher number
who were hired in planned rather than forced turnovers, and fewer
of them were themselves forced out. Historically, most outsiders
had been hired following forced successions, more often than not
in situations where the company had not been performing well.
11.0%
11%
10%
9%
8%
7%
6%
5%
4%
3%
2%
0.5%
1%
0%
0.3%
-1%
-2% -3.0%
-3%
-4% -4.6%
-5%
2000
2001
5.6%
4.6%
3.1%
4.1%
3.9%
3.9%
4.1%
2.4%
4.0%
4.6%
4.6%
4.6%
3.9%
2.9%
2.2%
3.7%
1.5%
0.7%
0.1%
2003
2004
2005
2006
2007
2008
2009
2010
0.9%
0.6%
-0.3%
-0.6%
-1.2%
2002
0.1%
2.6%
3.2%
2011
2012
2013
2014
2015
1) Total shareholder returns are annualized over outgoing CEOs' tenure and are regionally adjusted, meaning that performance is measured relative to a regional index (S&P 500,
Brazil Bovespa, FTSE 100, CAC 40, etc.).
Strategy& | PwC
April 2016
19
Most recently, outsider CEOs in Western Europe have been

significantly more likely to be forced out than outsiders in
any other region
Percentage of outgoing outsider CEOs via forced turnovers by region
20042015
20042007
20082011
20122015
67%
54%
39%
47%
43%
41%
37%
41%
40%
38%
36%
32%
21%
25%
20%
19%
18%
20%
22%
17%
14%
7%
5%
0%
Global
Western Europe Other Emerging1) Other Mature2)
Brazil,
Russia, India*
U.S./Canada
Japan*
China*
*Sample size in Japan and China not significant for all 12 years. Sample size in Brazil, Russia, India not significant from 20042007.
Note 2: Exhibit excludes turnover events with incomplete information.
Strategy& | PwC
April 2016
20
Outsider CEOs in Western Europe consistently perform

worse than those in the U.S./Canada
Outgoing outsider CEO by quartile of annualized shareholder returns1)
20042015
U.S./Canada
Western Europe
In the last four years, 60% of outgoing
outsider CEOs in the U.S./Canada have been
in the two highest TSR quartiles compared to
only 44% of outgoing outsider CEOs in
Western Europe. Outsider CEOs in Western
Europe are more likely to be appointed to lowperforming companies and more likely to be
forced out than outsiders in the U.S./Canada.
34%
29%
Highest TSR Quartile

Third TSR Quartile
Second TSR Quartile
Lowest TSR Quartile
26%
30%
17%
28%
23%
16%
27%
28%
50%
14%
26%
29%
14%
20042007
32%
30%
20082011
21%
24%
20%
18%
20122015
20042007
33%
24%
27%
33%
20082011
20122015
50%
1) Total shareholder returns are annualized over outgoing CEOs' tenure and are regionally adjusted, meaning that performance is measured relative to a regional index (S&P 500,
Brazil Bovespa, FTSE 100, CAC 40, etc.).
Strategy& | PwC
April 2016
21
CEO turnover summary
In 2015, the total CEO turnover rate at the worlds 2,500 largest companies was
16.6%, a study record high. 17% of all CEO turnovers in 2015 were due to M&A, the
highest since 2007.
Brazil, Russia, and India (BRI) lead the world again in CEO turnovers while Japan
and Western Europe reached five year highs.
In four out of the last five years, BRI has had the highest CEO turnover rate.
Japan went from the lowest CEO turnover rate in 2014 (12%) to the second highest in
2015 (19%) Western Europe went from 14% in 2014 to 18% in 2015.
Telecommunication services has the highest CEO turnover rate for the fifth straight
year; five other industries led by energy and materials reached five year highs.
With the falling price of oil and other commodities, CEO turnover jumped in the
following industries:
Energy: 18% in 2014 to 23% in 2015
Materials: 17% to 20%
Utilities: 13% to 17%
Financial services: 13% to 16%
Strategy& | PwC
April 2016
22
In 2015, the total CEO turnover rate of the worlds 2,500

largest public companies was 16.6%, a study record high
CEO turnover rate by succession reason
CEO turnover events as a percentage of top 2,500 public companies
M&A
Forced turnover
Planned turnover
Turnover rate
17%
16%
14.7%
(367)
15%
14%
13%
12%
11%
14.4%
(359)
2.6%
12.9%
(323)
10.9%
3.2% (272)
2.4%
10.8%
(270)
1.4%
9.8%
(244)
4.4%
14.3%
(359)
14.2%
(354)
2.2%
1.8%
2.2%
3.6%
11.6%
(290)
3.4%
1.8%
15.0%
(375)
1.4%
14.2%
(355)
14.3% 2.8%
(357)
1.5%
1.2%
2.8%
1.9%
2.2%
4.6%
4.2%
2.2%
3.2%
6%
5%
9.2%
4%
3%
6.0%
2%
5.0%
5.3%
2002
2003
9.8%
9.1%
7.8%
6.4%
3.0%
2.6%
5.1%
3.4%
2.4%
14.4%
(361)
2.9%
4.5%
1.3%
9%
7%
13.8%
(345)
2.4%
3.4%
10%
8%
15.4%
(386)
16.6%
(416)
6.3%
6.7%
7.2%
2006
2007
2008
10.8%
11.2%
10.1%
10.9%
7.7%
1%
0%
2000
2001
2004
2005
2009
2010
2011
2012
2013
2014
2015

Strategy& | PwC
April 2016
23
In 2015, 17% of all CEO turnovers were due to M&A, the

highest since 2007
CEO succession reasons as a percentage of turnover events
20002015
M&A
Forced turnover
Planned turnover
13%
25%
26%
49%
2000
14%
22%
22%
41%
32%
17%
31%
17%
24%
23%
32%
56%
54%
46%
2001
2002
2003
53%
2004
21%
30%
15%
15%
16%
10%
10%
18%
19%
9%
17%
13%
24%
19%
15%
64%
66%
69%
72%
71%
2009
2010
2011
2012
2013
18%
35%
60%
2005
13%
44%
48%
50%
2006
2007
2008
78%
65%
2014
2015

Strategy& | PwC
April 2016
24
Brazil, Russia, and India had the highest rate of CEO

turnovers followed by Japan and Western Europe
CEO turnover rate by region and succession reason
2015 CEO turnover events as a percentage of top 2,500 public companies in each region
M&A
Forced turnover
Planned turnover
16.6%
(416)
2.8%
3.0%
23.6%
(30)
3.1%
3.1%
17.3%
19.4%
(40)
1.0%
Brazil,
Russia, India
Region
Number of companies in region
16.7%
(33)
5.2%
16.9%
(58)
2.0%
3.2%
10.3%
11.7%
13.1%
2.5%
1.0%
16.1%
(42)
2.3%
3.1%
14.3%
(123)
4.4%
2.2%
18.4%
10.9%
Global
17.9%
(90)
2.4%
Japan
Western Europe
Other Mature1) Other Emerging2)
10.7%
China
7.7%
U.S./Canada
Brazil,
Russia,
India
China
Japan
Other
emerging
Other
mature
U.S./
Canada
Western
Europe
Total
127
261
206
198
343
861
504
2500
Strategy& | PwC
April 2016
25
Japan went from the lowest CEO turnover rate in 2014 to the
second highest in 2015
CEO turnover rate by region
20102015 CEO turnover events as a percentage of top 2,500 public companies in each region
U.S./Canada
Western Europe
Turnover rate
Japan
24%
Other Mature1)
22%
China
20%
Brazil, Russia, India
18%
Other Emerging2)
16%
14%
12%
10%
8%
6%
4%
2%
0%
2010
2011
2012
2013
2014
2015
Strategy& | PwC
April 2016
26
The telecommunication services industry had the highest

CEO turnover rate followed by energy and materials
CEO turnover rate by industry and succession reason
2015 CEO turnover events as a percentage of top 2,500 public companies in each industry
M&A
Forced
Planned
24.7%
(23)
2.2%
23.2%
(42)
19.6%
(44)
2.8%
16.6%
(416)
6.5%
3.1%
6.6%
2.8%
16.8%
(64)
16.5%
(23)
2.4%
2.7%
0.7%
2.2%
16.3%
(34)
16.2%
(87)
3.4%
2.2%
2.9%
3.0%
3.4%
16.1%
3.4%
15.8%
(55)
3.2%
12.3%
(21)
10.5%
(23)
2.6%
2.3%
0.9%
5.8%
13.8%
13.8%
10.9%
13.7%
11.6%
9.6%
10.6%
10.1%
0.6%
7.3%
5.8%
Cross
Industry
Telecommunication
Services
Industry
Number of companies in
industry
Energy
Materials
Industrials
Consumer Consumer Energy

discretionary
staples
348
208
181
Utilities
Consumer
Staples
Financial Health Industrials

services
care
537
171
380
Financial
Services
Consumer
Discretionary
Healthcare
Information
Technology
Information
technology
Materials
Telecommunication
services
Utilities
Total
219
224
93
139
2500
Strategy& | PwC
April 2016
27
Six industries led by telecommunication services, energy,

and materials all reached five year high CEO turnover rates
CEO turnover rate by industry
20102015 CEO turnover events as a percentage of top 2,500 public companies in each industry
Consumer Discretionary1)
Consumer Staples
Turnover rate
Energy
25.0%
Financial Services
Healthcare
Industrials
20.0%
Information Technology
Materials
Telecommunications Services
15.0%
Utilities
10.0%
5.0%
0.0%
2010
2011
2012
2013
2014
2015
Strategy& | PwC
April 2016
28
2015 incoming class of CEOs summary
In the 2015 incoming class of CEOs, new CEOs in Western Europe compared to the
U.S./Canada were more likely to:
Be outsiders (38% vs. 14%)
Be of foreign nationality (30% vs. 15%)
Have worked internationally (41% vs. 30%)
They were less likely to:
Spend their entire career at one company (9% to 16%)
Have an MBA (26% to 41%)
The global CEO is a myth. International work experience is decreasing, down to 28% in
2015.
Loyalty high in Japan and China. Three quarters of incoming CEOs in Japan and nearly
one half in China spent their entire career at one company.
Tech CEOs skip business school. Only 13% of incoming CEOs in the information
technology industry had an MBA compared to 44% in the consumer staples industry.
Good governance on the rise. Only 7% of incoming CEOs also held the position of
chairman, a study record low.
Strategy& | PwC
April 2016
29
In 2015, Western Europe hired more than double the share of

outsider CEOs than the U.S./Canada
Incoming CEO pedigree by region
2015

62%
65%
77%
67%
75%
84%
86%
97%
38%
35%
23%
33%
25%
16%
14%
3%
Global
Western Europe
Other Mature1)
Brazil,
Russia, India
Other Emerging2)
China
U.S./Canada
Japan
Note 2: Exhibit excludes turnover events resulting from M&A, interims, and events with incomplete information
Strategy& | PwC
April 2016
30
Half of the incoming CEOs in the telecommunication services

industry were outsiders
Incoming CEO pedigree by industry
2015

50%
68%
77%
69%
73%
73%
77%
82%
85%
86%
15%
14%
94%
50%
23%
Cross TelecommuniIndustry
cation
Services
32%
Utilities
31%
Energy
27%
Healthcare
27%
Industrials
23%
Financial
Services
18%
Materials
6%
Consumer Consumer Information

Staples Discretionary1) Technology
Note: Exhibit excludes turnover events resulting from M&A and interims and events with incomplete information.
Strategy& | PwC
April 2016
31
The median age for an incoming CEO was 53 with CEOs in

Japan being the oldest (median age of 60)
Incoming CEO median age by region
2015
Global median
age in 2014
was 52.
60
55
53
Global
Japan
Other Mature1)
53
Brazil,
Russia, India
52
51
51
Western Europe
China
U.S./Canada
50
Other Emerging2)
Note 2: Exhibit excludes turnover events resulting from M&A and interims and events with incomplete information.
Strategy& | PwC
April 2016
32
Companies in Western Europe were most likely to hire a

foreign CEO
Incoming CEO nationality compared with company headquarters region
2015
Different country, different region
Different country, same region
Same
12%
5%
3%
97%
83%
Global
Japan
6%
94%
China
10%
90%
Brazil,
Russia, India
14%
1%
84%
U.S./Canada
14%
5%
82%
20%
2%
78%
Other Emerging1) Other Mature2)
11%
19%
70%
Western Europe
Strategy& | PwC
April 2016
33
The global CEO is a myth. International work experience is

decreasing, down to 28% in 2015
Incoming CEOs with experience1) in different regions compared to company HQ region
2015

55%
45%
2012
65%
66%
72%
35%
34%
28%
2013
2014
2015
1)Experience in different regions means incoming CEOs experience in regions other than company HQ region.
Strategy& | PwC
April 2016
34
Incoming CEOs in Western European were most likely to

have international work experience
Incoming CEOs with experience1) in different regions compared to company HQ region
2015

59%
72%
62%
70%
74%
82%
86%
97%
41%
28%
38%
30%
26%
18%
14%
3%
Global
Western Europe
Other Mature2)
U.S./Canada
Other Emerging3)
Japan
Brazil,
Russia, India
China
1) Experience in different regions means incoming CEOs experience in regions other than company HQ region.
2) "Other Mature" economies include Argentina, Australia, Bahrain, Chile, Czech Republic, Hong Kong, Hungary, New Zealand, Poland, Korea..
Strategy& | PwC
April 2016
35
More than a quarter of incoming CEOs spent their entire

career at one company
Incoming CEOs with previous experience1) in different companies
2015
Has previously worked in other companies
Has not previously worked in other companies
80%
78%
80%
20%
22%
20%
2012
2013
2014
74%
26%
2015
1) "Previous experience in different companies" means new CEO had worked at another company at any time before being named CEO at current company.
Strategy& | PwC
April 2016
36
a result of the high CEO turnover in Japan where three

quarters of incoming CEOs spent their entire career at
one company
Incoming CEOs with previous experience1) in different companies by region
2015
Has previously worked in other companies
Has not previously worked in other companies
24%
54%
71%
74%
79%
84%
87%
91%
21%
16%
13%
9%
Other Mature 2)
U.S./Canada
76%
46%
29%
26%
Global
Japan
China
Brazil,
Russia, India
Other Emerging3) Western Europe
1) "Previous experience in different companies" means new CEO had worked at another company at any time before being named CEO at current company.
Note: Exhibit excludes turnover events resulting from M&A and interims
Strategy& | PwC
April 2016
37
A third of incoming CEOs had an MBA and a tenth had a PhD
Incoming CEOs with and without selected degrees

2015
No
Yes
1%
70%
91%
99%
30%
9%
Undergraduate
MBA
PhD
Strategy& | PwC
April 2016
38
CEOs in the U.S./Canada were most likely to have an MBA
Incoming CEOs with an MBA by region

2015
No MBA
Yes MBA
70%
59%
65%
67%
68%
74%
75%
97%
30%
41%
35%
33%
32%
26%
25%
3%
Global
U.S./Canada
Other Mature1)
Brazil,
Russia, India
Other Emerging2) Western Europe
China
Japan
1) "Other Mature" economies include Argentina, Australia, Bahrain, Chile, Czech Republic, Hong Kong, Hungary, New Zealand, Poland, South Korea, etc.
2) Other Emerging" economies include Egypt, Kazakhstan, Mexico, Nigeria, South Africa, Turkey, Vietnam etc.
Strategy& | PwC
April 2016
39
CEOs in the information technology industry were least

likely to have an MBA
Incoming CEOs with an MBA by industry
2015
No MBA
Yes MBA
56%
70%
44%
30%
Cross
industry
Consumer
staples
63%
38%
Energy
65%
35%
Telecom
services
67%
33%
Industrials
69%
31%
Financials
71%
29%
Materials
73%
27%
Health care
74%
26%
Utilities
82%
88%
18%
13%
Consumer Information
discretionary1) technology
Strategy& | PwC
April 2016
40
Only 7% of incoming CEOs also held the position of

chairman, a record low
Percentage of incoming CEOs who hold the joint title of CEO and chairman
20002015
Joint title share
North America
China & Rest of Asia
Europe
Global Average
Japan
65%
60%
55%
48%
50%
45%
40%
35%
33% 33%
33%
31%
30%
29%
26%
25%
19%
20%
18%
12%
15%
13%
14%
12%
10%
9%
10%
2013
2014
7%
5%
0%
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2015
Strategy& | PwC
April 2016
41
Women CEOs summary
Women CEOs take a step back. The share of incoming women CEOs fell to 2.8%, the
lowest percentage since 2011. Just 10 of 359 incoming CEOs (permanent and interim) in
the class of 2015 were women.
Women CEOs in the U.S./Canada slide to the bottom. The share of incoming women
CEOs in the U.S./Canada fell for the third year to the lowest in the studys history. There
was just 1 woman of the total 87 (1.1%) incoming CEOs in the U.S./Canada.
Women CEOs are more often hired from outside the company than men CEOs are.
32% of incoming and outgoing women CEOs were outsiders compared to just 23% of
men.
There is improvement. As of 2015, it is no longer statistically significant that women
CEOs are more often forced out of office than men. Over the last 12 years, 32% of
women CEOs have been forced out of office compared to 25% of men.
Strategy& | PwC
April 2016
42
In 2015, the share of incoming women CEOs fell to 2.8%, the

lowest since 2011
Share of incoming women CEOs
20042015
Incoming women CEOs
6%
5.2%
5%
4.3%
4.0%
4%
3.5%
3.4%
3.0%
3%
2.8%
2.6%
2.4%
2.1%
2%
1.1%
1.0%
2007
2008
1%
0%
2004
2005
2006
2009
2010
2011
2012
2013
2014
2015
Note: Exhibit includes turnover events resulting from M&A and interims and excludes events with incomplete information.
Strategy& | PwC
April 2016
43
While the share of incoming women CEOs in the U.S./Canada

fell for the third year to the lowest in the studys history
Share of incoming women CEOs in the U.S./Canada
20042015
Incoming women CEOs
8%
7.3%
7.1%
7%
6.2%
6%
5.2%
4.8%
5%
4.7%
4.0%
4%
2.7%
3%
2%
2.4%
2.0%
1.9%
1.1%
1%
0%
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Strategy& | PwC
April 2016
44
However, over the last 12 years, the U.S./Canada has hired

the largest share of women CEOs
Percentage of incoming women CEOs by region
20042015
Women CEOs
4.0%
3.8%
3.7%
3.1%
3.0%
2.3%
1.9%
0.9%
Global
U.S./Canada
Other Mature1)
China
Brazil,
Russia, India
Western Europe Other Emerging2)
Japan
Note: "Mature" countries are defined as per the U.N. Development Programme 2015 ranking of countries with "very high human development" (human development index >0.80);
Strategy& | PwC
April 2016
45
The consumer discretionary industry has hired the largest

share of women CEOs
Percentage of incoming women CEOs by industry
20042015
Women CEOs
4.9%
4.7%
4.5%
3.6%
3.3%
3.0%
3.0%
1.6%
1.6%
1.5%
1.0%
Cross
Consumer Consumer Telecommuni- Utilities
Industry Discretionary1) Staples
cation
Services
Financial
Services
Information Healthcare
Technology
Energy
Industrials
Materials
Strategy& | PwC
April 2016
46
In the U.S./Canada, the financials industry has hired the

smallest share of women CEOs
Percentage of incoming women CEOs in the U.S./Canada by industry
20042015
Women CEOs
10.0%
8.5%
6.8%
5.6%
4.1%
4.0%
3.2%
3.1%
2.3%
1.7%
1.1%
Cross Telecommuni- Consumer

Industry
Staples
cation
Services
Utilities
Consumer Information Industrials

Discretionary1) Technology
Healthcare
Materials
Energy
Financial
Services
Strategy& | PwC
April 2016
47
Women CEOs are more often hired from outside the company
than men CEOs are*
Incoming and outgoing CEOs by gender and pedigree
20042015
Insider CEOs
Outsider CEOs
68%
32%
Female CEOs
77%
23%
Male CEOs
Note: Exhibit excludes turnover events resulting from M&A for incoming CEOs, interims for incoming and outgoing CEOs, as well as turnover events with incomplete information.
*The chi-square statistic is 7.5107. The p-value is.006133. The result is significant at p <.05.
Strategy& | PwC
April 2016
48
From 2004 to 2015, women were 27 percent more likely to be

forced out, but in 2015, for the first time, the difference was
not statistically significant
Outgoing CEO by gender and pedigree
20042015
M&A
Forced turnover
11%
13%
32%
25%
57%
62%
Outgoing female CEOs
Ougoing male CEOs
Planned turnover

Strategy& | PwC
April 2016
49
Definition of terms
Succession: A succession event is defined as when a CEO leaves office, regardless of whether or not
a new CEO is selected to take his or her place, or when the companys leadership structure changes to
add CEOs.
We group the succession reasons into three categories:
M&A
Forced
Planned (successions that are the result of neither M&A nor a forced removal)
We determine whether a succession is forced or planned using reports in the press, analyst reports,
and the knowledge of Strategy& consultants from around the world.
Insider versus outsider CEO:
Insider: A CEO is considered an insider if he or she worked at his or her current company at least
one day before becoming CEO.
Outsider: A CEO is considered an outsider if he or she was hired directly from a company other than
the one he currently leads.
TSR: All total shareholder return figures we use are annualized TSR over the total tenure of outgoing
CEOs and are regionally adjusted, meaning that performance is measured relative to a regional index
(S&P 500, Brazil Bovespa, FTSE 100, CAC 40, etc.)
Strategy& | PwC
April 2016
50
Methodol0gy
The CEO Success study identified the worlds 2,500 largest public companies, defined by their market
capitalization (from Bloomberg) on January1, 2015. We then identified the companies among the top
2,500 that had experienced a chief executive succession event between January 1, 2015, and
December 31, 2015, and cross-checked data using a wide variety of printed and electronic sources in
many languages. For a listing of companies that had been acquired or merged in 2015, we also
used Bloomberg.
Each company that appeared to have changed its CEO was investigated for confirmation that a change
occurred in 2015, and additional details title, tenure, chairmanship, nationality, professional
experience, and so on were sought on both the outgoing and incoming chief executives (as well as
any interim chief executives). Company-provided information was acceptable for most data elements
except the reason for the succession. Outside press reports and other independent sources were used
to conrm the reason for an executives departure.
Finally, Strategy& consultants worldwide separately validated each succession event as part of the
eort to learn the reason for specic CEO changes in their region. To distinguish between mature and
emerging economies, Strategy& followed the United Nations Development Programme 2015 ranking.
Total shareholder return data over a CEOs tenure was sourced from Bloomberg and includes
reinvestment of dividends (if any). Total shareholder return data was then regionally market adjusted
(measured as the dierence between the companys return and the return of the main regional index
over the same time period) and annualized.
Strategy& | PwC
April 2016
51
2016 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.
This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.

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April 2016

2015 CEO Success

About the 2015 CEO Success study

Strategy&, PwCs strategy consulting business, annual study of worldwide CEO

Outsider CEO summary

Outsider CEOs were less likely to be hired if

Company was low performing

Chairman was hiring their first CEO at the

Chairman did not have CEO experience in the

Former CEO had a long tenure

More outsider CEOs now come in via planned successions,

Incoming CEOs via planned turnover

Western European companies hire outsider CEOs almost

Western Europe Other Emerging2)

Industries experiencing the most disruption have brought in

Low-performing companies were more likely to hire outsider

High-performing companies were more likely

Forced and planned turnovers

Low-performing Western European companies were much

Forced and planned turnovers

Outsider CEOs were more likely to be hired if the chairman

Incoming CEO pedigree by chairman

If the outgoing CEO was also

Outgoing insider CEO

If the chairman did not have

Outgoing outsider CEO

Chairman had previous

Chairman did not have

Not chairmans first CEO appointment at the company

New chairmen are more likely to stick with

Outgoing insider or outsider CEO

Outgoing insider CEO

Outgoing outsider CEO

An outsider CEO was hired 28%

Incoming insider CEO

The larger the company, the less likely it was to hire an

Incoming CEO pedigree by # of

Incoming insider CEO

More recently, companies have been hiring outsider CEOs

Incoming outsider CEO with prior public

No public CEO experience

Has public CEO experience

In 2015, in the largest companies, 60% of incoming outsider

No public CEO experience

Smallest market cap quartile Second market cap quartile

Third market cap quartile

Largest market cap quartile

Outsider CEOs were more likely than insiders both to have

Incoming CEO nationality compared with

Different country, different region

Has worked in other regions

Different country, same region

Incoming insider CEO

Incoming outsider CEO

Incoming insider CEO

Incoming outsider CEO

The financials industry hired almost all its outsider CEOs

Financial Telecommunication Healthcare

Historically, outsider CEOs were much more likely to be

Outgoing insider CEOs by turnover type

Merger and acquisition

Note: Exhibit excludes turnover events with incomplete information.

Outgoing outsider CEOs have had longer median tenures