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Interim Partners Say Rates For Interims On the Up

Interim Partners Say Rates For Interims On the Up

Rates for interim executives jump 10% as senior management turnover drives board level appointments

1 in 10 interims now in & lsquo;C suite’ positions

Financial services firms make up 53% of private sector demand

Average daily pay rates for private sector interim executives jumped by over 10% in the first quarter of 2012, rising from &pound789 in Q4 2011 to &pound870 per day in Q1 2012,* says Interim Partners, a leading provider of interim management solutions. (see graph)

Interim executives are managers or other senior executives, at or just below board-level, who are recruited on a short-term basis.

The research highlighted a boom in the hiring of board level directors – so-called & lsquo;C suite’ executives – on an interim basis. One in ten interim executives are now at C suite level, such as CEO, CFO or COO, an increase from 7% in the fourth quarter of 2011.

Doug Baird, Managing Director of Interim Partners, comments: “There has been a boom in the hiring of board level interims because of the higher turnover among senior management teams in UK businesses. Board level tenure is getting shorter, as shareholders and other investors put pressure on managers to get the job done or lose their own jobs. This is leading to greater demand for senior executive interims who can step in at short notice, pushing up the rates they can charge.”

“Shareholder pressure to improve profitability has been particularly loud for FTSE-100 companies, leading those businesses to consider changing their approach, but businesses of all sizes are encountering the same issues. This is leading to a very high number of appointments for interim CEO, CFO and COO positions.”

“The root cause of the trend towards board executive tenure is the flat-lining economy, which makes it hard to generate the returns that shareholders want to see.”

Recent research by Booz & Co found that CEO turnover across the world’s top 2,500 companies increased sharply in 2011, with 14.2% of CEOs leaving their posts, compared with only 11.6% a year earlier.

Doug Baird continues: “When the economy was nose-diving in 2008 and 2009, shareholders didn’t want to take the risk of management change unless they absolutely had to, but that fear seems to have eased now.”

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