The tenure dilemma
The Boathouse report puts a positive spin on CMO turnover, with 50% of CEOs now saying that a CMO’s short tenure is a sign of success in the marketing role, up from 19% in 2022. The report also found that 54% of CEOs are aware that their CMO counterpart’s tenure is shorter, up from 46% in 2022. The data did not distinguish between CMOs who were fired or left for a new role.
“I think it’s because the perception of the CMO went from negative to positive,” said Connors. “Now CEOs give CMOs the benefit of the doubt, and see them leaving as a sign of success. So when CEOs say ‘success’ it is purely based on their perception and personal experience. This finding also mirrors the academic research of Kim Whitler at Darden who has hypothesized that short tenure is due to the fact that CMOs are moving based on high demand.”
But Connors cautions reading too far into the change, adding that he would like to see two more years of data to see if the trend holds. “It’s not clear if CEOs are just more positive in general towards their CMO,” he said. “If this was truly happening, I think we would be seeing a lot of high-visibility departures or poaching.”
More news: Executives on the move
Despite the good grades and accolades, CEOs are feeling less of a personal relationship with CMOs. While many CEOs believe that their CMO understands the business and is performance-minded, only 45% think their CMO is easy to collaborate with, down from 66% in the prior survey. And just 30% of CEOs say their CMO shares their values, and is someone they have great confidence in, down from 56% and 47% in the prior two surveys.
“There is a sense that they can trust them from a business standpoint,” Connors said. “But personal trust is a different level. Think about how often CMOs say the CEO doesn’t get it, or doesn’t understand how complex the CMO role is.”
The findings are consistent with a McKinsey survey published last year that suggested a CEO-CMO divide—when CMOs and CEOs were asked about their top marketing metrics, the two groups agreed only 50% of the time, according to McKinsey. A similar gap occurred regarding what each considered the primary role of marketing to be.
Connors dismissed the idea that remote or hybrid offices played a role in the deterioration of personal connections. “I do think COVID was a turning point, making teams get more aligned on brand and reputation, not just about consumers. So the building blocks are in place for that personal relationship to improve.”