A leadership gap looms in Nordic and Benelux boardrooms

The Nordic and Benelux regions face a growing leadership gap in their corporate boardrooms. Despite their stability and global prominence, companies in these regions struggle to find CEOs who can adapt to the rapidly changing business landscape. Heidrick & Struggles' Route to the Top report reveals that nearly four in ten European CEOs doubt their own capabilities and those of their counterparts in the Nordics and Benelux.

Tenure appears to be a key factor, with CEOs in these regions staying in their roles for extended periods compared to other markets. The average tenure for Belgian CEOs is nine years, the longest in Europe, while Swedish and Norwegian CEOs have the shortest average tenure of two and a half years. This long tenure may hinder the ability to make necessary changes during times of volatile economic and technological conditions.

Boards in these regions are also insular, preferring to promote leaders from within. While internal candidates often bring deep knowledge of the firm, they may lack the fresh perspective needed to spot problems and drive change. This approach may be less effective during turbulent times, when organizations require CEOs with broader perspectives and experience across different markets and cultures.

The report suggests that boards should avoid naming a single successor until just a few months before a handover, instead keeping several viable candidates in play. This more dynamic approach to succession planning will be crucial as business conditions continue to shift rapidly.