Construction CEO's provided us excellent insights such as :
- 11% of contractors replaced their CEO’s in 2004.
- Of the CEO departures recorded in 2004, 39% were forced, performance-based changes, compared to 36% in 2003.
- The most common reason for CEO departure in 2004 was due to retirement.
- Only 26% of CEO’s are age 60 or older down from 29% in 2002, indicating a continuing trend that construction CEO’s are getting younger.
- Most CEO’s agreed that “A”level executive performers typically outperform “C” level performers by 50 to 100%.
- 21% of CEO’s offered stock options, 82% sponsored a 401(k) plan, 40% allowed telecommuting, 76% provide flexible schedules, 81% offered tuition reimbursement. 71% spread profit sharing for their executives.
- 26% of construction CEO’s have been with their firm throughout their careers.
- The average age for CEO retirement was 60 in 2004.
- Engineering is the most common undergraduate degree of construction CEO’s.
- Two-thirds of CEO’s currently use a hiring planning cycle for their firm of one year or less, indicating a reactive and crisis-driven hiring process.
- 31% of CEO’s have a formal management succession planning system currently in place.
- 41% of CEO’s claimed to know with certainty what the career goals were of their executive staff; however more than 68% of executives believed their CEO’s did not know their career goals.
- 82% of CEO’s currently have employment contracts; average term for an employment contract is 3 years; 84% contain a non-compete and confidentiality/nondisclosure clauses; 92% provided for severance pay.
- The majority of CEO’s plan to battle the future shortage of skilled workers by offering better talent management and recognition programs.
“Each year we look forward to your executive retention survey. It’s the only survey of its kind for construction executives, and it helps us better to manage our executive retention efforts”
– CFO, General Contractor, Austin, TX