Australian executive turnover increases

The turnover rate of chief executives in Australian companies reached 22 per cent in 2008, according to the latest figures.

Booz & Company has published its CEO Succession Study, which disclosed that the downturn in the country's economy led to the departure of more than one-fifth of chief executives last year.

Specifically, the report discovered that executives working in the financial services industry and property trusts were most affected by the turbulent corporate environment, accounting for nearly 50 per cent of all departures.

The global consultancy firm's study also disclosed that executive recruitment trends altered last year, with 74 per cent of new appointments originating from existing board members of executives.

Phil Mottram, principal at Booz & Company, described the findings of the report as "surprising", considering the Australian economy's resilience to the global downturn.

He said: "We could argue that Australian boards have been gutsier in relation to their chief executive turnover decisions - that they're not averse to making the tough decisions if they need to, compared to other regions."

Earlier this week, Paul Quinn, head of the law firm Allens Arthur Robin's corporate department, called on Australia's Productivity Commission to ensure that companies appoint diverse executives.