CMO tenure, which has been steadily decreasing in recent years at large B2C advertisers, should be viewed with some nuance beyond a dismissal of them being low. Indeed, the latest annual report from Spencer Stuart not only finds that CMO tenures at Fortune 500 companies are almost on par with the broader C-suite, but also notes that “shorter tenure should not necessarily be conflated with poor performance.”
In its 19th annual study of the topic, Spencer Stuart has expanded its data set beyond the traditional sample that analyzed 100 of the largest B2C advertisers. This year, the report also looks at the tenure and backgrounds of Fortune 500 (F500) CMOs, which include B2B CMOs. The data sets pertain to 2022 as the year of analysis.
B2B CMOs Have Longer Tenures
The findings indicate that CMOs of the top 100 B2C advertisers have an average tenure of 3.3 years, which is in line with the previous couple of years (each at 40 months). However, the average tenure of Fortune 500 CMOs is longer, at 4.2 years (51 months), though that’s down from 4.5 years in 2021.
The difference in tenure between the two groups owes to the composition of the data sets, including the presence of B2B CMOs in the F500 set. This does lift the average tenure among F500 CEOs, as the average tenure for CMOs at B2B companies was found to be higher (4.4 years) than for those at B2C companies (4.1 years).
In fact, the average tenure of CMOs at F500 companies – 4.2 years – is only slightly lower than the C-suite on average (4.4 years), contrasting with earlier research on this topic. The CEO has the highest average tenure (6.7 years) in the C-suite, followed by General Counsel (5.5 years). The shortest tenures are for Chief Sustainability Officers (3.4 years), Chief Operating Officers (2.9 years), and Chief Inclusion and Diversity Officers (2.7 years), possibly as a result of 2 of those 3 being newer titles.
Spencer Stuart also cautions that shorter tenure isn’t necessarily a bad thing, often indicating “success and elevation to other roles.” This is particularly the case for large B2C advertisers: separate research from Spencer Stuart indicates that more than three-quarters (77%) of exiting CMOs in this top 100 list head to “bigger and better” roles. By contrast, the CMO job in F500 companies tends to be the final stop in a career.
Gender and Ethnic Diversity Improves
While diversity in marketing leadership has been slow to come, the Spencer Stuart analysis indicates improvement. Last year, women accounted for a majority (53%) of CMO roles at the largest B2C advertisers, up from 50% in 2021. Meanwhile, 18% of CMOs were from under-represented racial and ethnic groups, up from 15%.
Among those top 100 CMOs who had been in the role for a year or less, a smaller percentage than average (46%) were women, but an above-average share (32%) were from under-represented racial and ethnic groups.
Turning to F500 CMOs, the analysis shows that 47% last year were women, up from 44% in 2021. About 1 in 7 (14%) were from under-represented racial or ethnic groups, up from 12% in 2021.
Among the F500 CMOs who had served in the role for a year or less, an above-average share were women (49%) and from under-represented racial and ethnic groups (25%).
More Large Advertiser CMOs Are Promoted from Within
Last year 60% of CMOs at top B2C advertisers were promoted from within their company, up from 55% in 2021, and only 28% had prior CMO experience. The 28 first-time CMOs in the list were almost exclusively promoted from within their companies (95%), and 71% were first-time CMOs.
At Fortune 500 companies, 54% of CMOs had been promoted from within, down slightly from 56% in 2021, while 29% had previously been a CMO before their current role. Among the 59 who were appointed during 2022, 70% were promoted from within the company and two-thirds (68%) were first-time CMOs.
See here for the full analysis.
About the Data: The results are based on “an analysis of the tenures and backgrounds of CMOs from the 100 companies included in the Ad Age Leading National Advertisers list and the 320 named CMOs of Fortune 500 companies as of Dec. 31, 2022.”