CMO Tenure Trends: Short Stints for B2C Marketing Leaders

Career ladder longevity

More than one in five CMOs in consumer-facing businesses were in role for a year or less in 2023, according to annual research from leadership advisory firm Spencer Stuart.

In 2023, 22% of CMOs at B2C Fortune 500 companies only stayed in their position for 12 months or less. This number is twice as high as the turnover rate for CMOs in B2B businesses, where only 11% lasted a year or less.

The report also shows that the average CMO tenure across Fortune 500 companies remained steady in 2023 at 4.2 years, or 50 months, which is the same as the levels seen in 2022.

There is still a difference in the average tenure between B2C and B2B CMOs. In 2023, a top B2B marketer typically stayed in their role for four and a half years, while B2C marketers averaged four years in the same position.

It is common knowledge that CMOs often have short tenures, especially in consumer-facing industries where one-fifth of them have been in their roles for a year or less. However, research shows that the average tenure for CMOs in the Fortune 500 is around 50 months, which is not far off from the overall C-suite average of 55 months in 2023.

Surprisingly, the top 100 US advertisers, often well-known consumer companies with strong marketing strategies, have the shortest CMO tenures. On average, these top marketers only stay in their roles for 3.1 years, which is equivalent to 37 months.

This average is even lower than the 3.2 years noted in 2022, indicating that CMOs at the UK's leading advertisers have shorter tenures than they have had in more than ten years.

According to research by Spencer Stuart, most CMOs were promoted from within their organization to reach the top marketing position. In fact, 58% of top marketers were promoted internally, which is an increase of four percentage points compared to 2022.

The trend of promoting from within was even more prevalent in B2B companies, where nearly two-thirds (63%) of marketing leaders had risen through the ranks within the organization.

In the US, 74% of Chief Marketing Officers (CMOs) at the top 100 advertisers were new to their role, the highest percentage ever recorded by Spencer Stuart since 2016.

Similarly, among Fortune 500 companies, 71% of CMOs had never previously served as a CMO at the corporate level.

Gender parity for CMOs

The data also reveals a milestone for women, with half of all Fortune 500 CMO roles being held by women in 2023. This is up from 47% in 2022.

While progress was made in achieving gender parity, there was a slight decline in racial diversity among Chief Marketing Officers (CMOs). In Fortune 500 companies, the percentage of CMOs from historically underrepresented racial and ethnic backgrounds dropped from 14% in 2022 to 12% in 2023.

Among the top 100 US advertisers, 52% of CMOs were women, a slight decrease from 53% in 2022. Additionally, just under a fifth (19%) of CMOs were from underrepresented racial and ethnic groups, showing a small increase from 18% in 2022.

Editor's P/S:

The high turnover rate among CMOs in consumer-facing businesses is concerning, especially considering the short tenures at the top 100 US advertisers. This rapid turnover can disrupt marketing strategies and hinder long-term growth. Companies need to prioritize retaining top marketing talent by providing competitive compensation, fostering a positive work environment, and offering opportunities for professional development.

The progress towards gender parity among CMOs is encouraging, but there is still room for improvement in racial diversity. Companies should make a concerted effort to recruit and promote underrepresented candidates to ensure a more inclusive and equitable marketing leadership landscape. By embracing diversity and fostering an inclusive culture, companies can create a more dynamic and innovative marketing environment that drives success.