- Reckitt chief lands top job at Starbucks
- Shell head said to be readying departure
- 18 FTSE 100 bosses off to pastures new
While investors are still mulling over the quarterly FTSE index reshuffle, which saw around a dozen companies change places, the game of boardroom musical chairs seems to have picked up momentum again.
Hot on the heels of yesterday’s news that the chief executive of Reckitt Benckiser (RKT) was jumping ship, today news agency Reuters reports Shell (SHEL) boss Ben van Beurden is set to leave next year.
REVOLVING DOORS
No sooner had the news dropped that Laxman Narasimham was leaving Slough for the US to take up ‘an opportunity that enables him to live there’, the world’s largest coffee chain Starbucks (SBUX:NYSE) announced he would take over from current chief executive Howard Schulz, who himself only inherited the role in April.
Mr Narasimham isn’t in for an easy ride as the coffee chain faces struggling sales in China and a surge in unionization across its US stores with workers pushing for higher pay and better conditions.
Meanwhile, the Shell chief executive is reported to be preparing his exit next year after nearly a decade at the helm of the energy giant.
Although the firm declined to comment, the board is said to have already shortlisted four internal candidates to replace him.
BATTEN DOWN THE HATCHES
This week’s moves bring the number of chief executive departures in the FTSE 100 to 18 this year alone.
Of those, half have either already been replaced or are due to be replaced by the end of 2022 with the other half hanging on until 2023.
Among those stepping down next year are Simon Aurora of retailer B&M European Value (BME), one of the longest-serving chief executives in the FTSE with over 17 years of service, Andrew Williams of engineering firm Halma (HLMA), also with 17 years before the mast, and Steve Mogford of water company United Utilities (UU.) with over 11 years under his belt.
If investors can take anything away from this giddying change of boardroom talent it is probably a sign of turbulent times ahead.
‘Spikes in the number of CEO changes can come when times are getting tougher, either economically or at least in terms of share price if the jump in departures in 2000, 2007 and 2020 are any guide’ said AJ Bell investment director Russ Mould.
DISCLAIMER: Financial services company AJ Bell referenced in this article owns Shares magazine. The author of this article (Ian Conway) and the editor (James Crux) own shares in AJ Bell.
