How CEOs grade their CMOs

Chief marketing officers have a reason to smile—they are getting better reviews from their CEOs, according to a new report. In 2023, 40% of CEOs ranked their CMO as “Best in Class,” up from 36% in 2022 and 21% in 2021, according to a new survey by Boathouse, an independent marketing agency whose specialties include brand advertising, strategic communications and digital acquisition. Only 11% of CEOs said their CMO was underperforming in 2023, up slightly from 9% in 2022 and down from 24% in 2021. The findings come from a survey conducted in September of 150 CEOs from U.S. companies with more than 100 employees and with annual revenue of at least $250 million. This was the third year Boathouse has run the survey. “I think CMOs have gotten more experienced with business issues through COVID, and CEOs see them as more of a business partner,” said Boathouse CEO John Connors. Indeed, 87% of surveyed CEOs said that their CMOs understand their vision, and 80% said their CMOs take action and execute on that vision. Boathouse also asked CEOs to grade their CMOs overall performance, with 26% of CMOs receiving an “A.” That’s up from just 16% in 2022. Nearly half (47%) of CMOs received a “B” and 25% were given a “C.” It was rare to see lower grades, with just 2% of CMOs being given a “D” and only 1% receiving an “F.” (Click image enlarge) The findings are welcome news for a CMO profession that has long been under pressure and plagued by high turnover. More recently, a trend has been some companies actually doing away with the CMO role, while titles such as chief customer officer rise in popularity. Read more: The top concerns of marketers in 2024 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.” See our 2023 Marketers of the Year here

How CEOs grade their CMOs

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