CRIST|KOLDER ASSOCIATES Volatility Report 2016

CRIST|KOLDER Volatility Report

Table of Contents

Page 1 Report Methodology Page 4 Report Highlights Page 5 Executive Turnover Page 13 C-Suite Career Paths Page 28 Diversity Landscape Page 36 Education Background Page 45 Location and Migration

The annual Crist|Kolder Volatility Report of America’s Leading Companies examines the backgrounds and measures the turnover of C-Suite executives in a portfolio of 675 of America’s leading companies from the Fortune 500 and the S&P 500 Indexes. Crist|Kolder Associates examines each of the portfolio companies individually, noting personnel and organizational changes in the CEO, CFO, and COO roles. Each executive’s background is explored, including the path taken to get to their current role: industry background, functional experience, and education. This includes demographic information such as age, gender, and race. This is the thirteenth year of the Crist|Kolder Volatility Report, though information for the report goes back to 1995. This Summer 2016 release of the Crist|Kolder Volatility Report contains data through August 1, 2016.

Methodology

1

Methodology Notes • 2016 Fortune 500 and S&P 500 Companies (675 Total)

– Companies Removed from 2015: 45

– Companies Added: 48

– Public Companies: 645

– Private Companies: 30

• Data tracked January 1, 1995 through August 1, 2016; update occurs every December

• Industries broken down by Fortune’s classification system and then grouped into designated larger categories based on SIC codes and judgment of Crist|Kolder Associates

• Resources: – Bloomberg: www.bloomberg.com

– BoardAnalyst: www.boardanalyst.com

– Businessweek: www.businessweek.com

– Capital IQ: www.capitaliq.com

– Equilar Atlas: people.equilar.com

– Fortune: www.fortune.com

– Linkedin: www.linkedin.com

– Individual company websites

Industrial

17%

Healthcare

10%

Services

13%

Technology

12%

Retail

9%

Energy

12%

Financial

16%

Consumer

11%

Company Industry Breakdown

2

Volatility: Turnover is noted when the executive starts in the new role (as opposed to the date of announcement). Internal change: An executive is promoted to a new role at the company where he/she is already employed. External change: An executive is recruited to a position at a company to which he/she has no formal ties. Mergers: In a merger of equals, the combined company is considered a new entity. A change in leadership, therefore, is marked for all mergers. A change is internal if the executive was previously employed by either of the merging companies. Acquisitions: In the event an executive from the acquired company is appointed to a role in the acquiring company, it is an external change. Partial year: Designation indicates data gathered up to August 1, 2016, not a projection. COO Definitions: COO Role: If no individual operates under the title of COO at a given company, description of duties, executive hierarchy, and compensation are simultaneously analyzed to determine if someone with another title (i.e. President) fulfills this role. CEO-COO: Should a COO be promoted to CEO, or an individual be simultaneously elected to both

positions, the COO role is considered vacant since the functions of the COO are handled by the CEO.

Definitions

3

Report Highlights

• As the economy improves, CEO and CFO turnover rates have slowed. (Page 9)

• The number of companies utilizing the COO position continues to decrease; 30% of the S&P and Fortune 500

companies have COOs down from a high of 48% in 2000. (Page 11)

• Nearly 60% of CEOs are promoted directly from a COO chair or a Divisional President position. (Page 14)

• The Financial sector has the longest tenured CEOs, while Retail has the longest tenured CFOs. (Pages 22-23)

• Nearly 50% of CEOs were under the age of 50 when moved into the chair. (Page 24)

• While the number of African American CEOs has remained static, the number of Hispanic CEOs has tripled

in the last ten years. (Page 30)

• 2016 has seen the largest combined amount of female CEOs and CFOs in the history of this study. (Pages 29,

33)

• Foreign Universities have produced the most sitting CEOs, while Big Ten Universities have the highest

number of sitting CFOs. (Pages 37-38)

• Over half of CFOs in our study have completed their education through the MBA level. (Page 43)

4

Executive Turnover

5

As of August 1, 2016, turnover rate is projected to slow in all C-Suite level positions

CEO/CFO/COO Volatility (1995-2016) 2016 Fortune 500 and S&P 500 Companies (675 Companies; 677 Sitting CEOs; 663 Sitting CFOs; 199 Sitting COOs)

6

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016*

CEO 9.2% 9.5% 12.5% 11.7% 12.8% 15.3% 10.7% 9.5% 9.6% 11.6% 13.9% 10.6% 10.5% 11.3% 9.9% 7.9% 11.6% 9.4% 11.0% 9.7% 11.8% 11.2%

CFO 12.6% 14.1% 18.1% 16.6% 16.1% 17.3% 14.8% 13.9% 12.5% 15.5% 15.0% 16.8% 17.3% 18.9% 12.3% 10.7% 11.6% 13.4% 15.8% 13.7% 16.6% 14.9%

COO 19.1% 19.2% 28.0% 21.9% 24.1% 23.3% 20.3% 20.1% 20.7% 22.5% 22.4% 23.0% 19.6% 19.8% 18.8% 21.8% 20.8% 26.0% 17.0% 23.1% 19.4% 18.3%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Historical Average:

10.8%

Historical Average:

14.7%

Historical Average:

21.1%

*Projection of 2016 year end Partial year: CEO: 9.0% CFO: 9.8% COO: 13.6%

Nearly 40% of CEO turnover comes from the Industrial and Services Sectors

2016 CEO Volatility by Industry 2016 Fortune 500 and S&P 500 Companies (675 Companies)

Notable CEO Industrial and

Services Sector Changes in 2016

-Delta Air Lines, Inc. -United Continental Holdings -Eaton Corporation -PPG Industries, Inc. -Crown Holdings, Inc. -Priceline.com -Avis Budget Group Inc.

7

Industrial 23%

Services 15%

Healthcare 13%

Energy 11%

Retail 10%

Financial 10%

Consumer 10%

Technology 8%

CFO turnover rate is highest in the Energy, Industrial, and Technology sectors

2016 CFO Volatility by Industry

2016 Fortune 500 and S&P 500 Companies (675 Companies)

Notable CFO Energy and

Industrial Sector Changes in 2016

-SYSCO Corporation -LyondellBasell Industries -Delphi Automotive PLC -Autoliv, Inc. -Priceline.com -WESCO International, Inc. -Marriott International, Inc.

8

Energy 18%

Industrial 17%

Technology 17%

Financial 14%

Services 9%

Retail 9%

Healthcare 8%

Consumer 8%

The decline in CEO and CFO turnover is a residual effect of the recent peak in the S&P 500 index

Overall Volatility and S&P 500 Index** (1995-2016)

2016 Fortune 500 and S&P 500 (675 Companies)

9

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016*

S&P 500 Index 551.62 679.47 883.75 1098.23 1333.84 1423.95 1191.19 990.98 966.02 1130.25 1206.75 1307.23 1475.5 1241.22 937.92 1132.95 1268.21 1379.36 1580.03 2092.94 2100.87 2034.96

CEO/CFO Turnover 11.4% 12.5% 16.3% 15.8% 15.3% 17.5% 13.9% 12.6% 11.2% 14.9% 16.1% 14.2% 15.2% 15.9% 12.4% 9.8% 12.2% 11.9% 13.2% 10.9% 13.4% 12.3%

0

500

1000

1500

2000

2500

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

*Projection of 2016 year end **Average Daily Close Partial year: CEO/CFO Turnover: 9.4%

10

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016*

CEO 20.8% 19.2% 20.9% 11.7% 16.4% 21.3% 20.7% 25.0% 18.1% 24.4% 24.6% 21.8% 21.0% 28.8% 34.6% 19.7% 21.1% 22.4%

CFO 35.8% 40.4% 31.5% 53.9% 34.6% 39.0% 33.3% 37.5% 42.7% 42.2% 43.5% 32.4% 41.3% 43.0% 42.7% 42.0% 34.6% 33.7%

0%

10%

20%

30%

40%

50%

60%

Historical Average

39.4%

Historical Average

21.8%

CEO and CFO external recruitment is projected to trend near historical averages

Percentage of CEO/CFO Recruited from Outside the Company (1995-2016) 2016 Fortune 500 and S&P 500 Companies (675 Companies; 677 Sitting CEOs; 663 Sitting CFOs)

*Projection of 2016 year end Partial year: CEO: 18.3% CFO: 32.4%

The number of companies with a COO has decreased by 15% in the last ten years

Percentage of Companies with a COO (2000-2016) 2016 Fortune 500 and S&P 500 (675 Companies; 199 Sitting COOs)

*Partial Year 11

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016*

% with COO 48.0% 44.7% 45.5% 44.9% 44.4% 43.9% 43.8% 46.0% 44.3% 42.2% 41.6% 41.5% 39.6% 36.3% 36.0% 33.6% 29.5%

Technology and Industrial companies are less likely to have a COO in place, while nearly 40% of Service companies utilize this role

Percentage of 2016 Companies with a COO by Industry

2016 Fortune 500 and S&P 500 Companies (675 Companies; 199 Sitting COOs)

12

0%

5%

10%

15%

20%

25%

30%

35%

40%

Services Retail Consumer Financial Energy Healthcare Technology Industrial

% with COO 39.5% 35.9% 35.1% 30.8% 30.6% 25.8% 25.3% 17.0%

C-Suite Career Paths

13

Nearly 60% of current CEOs came directly (internally or externally) from either a COO chair or a Divisional President position

Percentage of 2016 Sitting CEOs by Immediate Previous Position 2016 Fortune 500 and S&P 500 (675 Companies; 677 Sitting CEOs)

•Operating Executive: VP/SVP/EVP Operations •CEO: Internally recruited CEOs a result of mergers •Other: i.e. Government Role, Private Equity, Management Consulting, Chairman

14

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

President/COO Divisional President

Operating Executive

CEO CFO Founder Other

Percentage 41.5% 17.3% 14.5% 11.6% 7.8% 4.5% 2.8%

Externally hired CEOs are most frequently recruited from another CEO role

Immediate Prior Position of 2016 Sitting CEOs, Internal vs. External 2016 Fortune 500 and S&P 500 (675 Companies; 677 Sitting CEOs)

•CEO: Internally recruited CEOs a result of mergers •Operating Executive: VP/SVP/EVP Operations •Other: Tax, Law, IT, etc.

15

0%

10%

20%

30%

40%

50%

60%

CEO Divisional President

Operating Executive

President/COO CFO Other Founder

External Percentage 45.2% 21.0% 15.3% 11.3% 4.0% 3.2% 0.0%

Internal Percentage 4.0% 16.5% 12.2% 50.5% 8.6% 2.7% 5.5%

The Industrial sector leads in CEOs who come directly from a CFO chair

Percentage of 2016 Sitting CEOs coming from a CFO Chair by Industry 2016 Fortune 500 and S&P 500 (675 Companies; 677 Sitting CEOs; 52 Total CEOs from a CFO chair)

16

0%

5%

10%

15%

20%

25%

Industrial Energy Financial Services Technology Consumer Healthcare Retail

% from Position 23.1% 19.2% 15.4% 15.4% 11.5% 7.7% 3.8% 3.8%

Only 20% of sitting CFOs came directly from another CFO position

Percentage of 2016 Sitting CFOs by Immediate Previous Position 2016 Fortune 500 and S&P 500 (675 Companies; 663 Sitting CFOs)

•CFO: CFO of another company •Operating Executive: VP/SVP/EVP Operations •Corporate Finance Executive: VP, SVP, EVP of Finance •Strat/MA: Investment Banking, Corporate Development, Planning or Strategy •Other: Tax, Law, IT, etc.

17

0%

5%

10%

15%

20%

25%

CFO Controller Corporate Finance

Executive

Treasurer Divisional Finance Officer

Divisional President

Strat/MA Other President/COO

Investor Relations

Consulting Risk Operating Executive

Percentage 23.4% 18.7% 15.9% 11.1% 7.3% 7.0% 5.8% 3.3% 3.0% 1.5% 1.2% 1.1% 0.8%

Internally hired CFOs most often come from a Controller Background

Immediate Prior Position of 2016 Sitting CFOs, Internal vs. External 2016 Fortune 500 and S&P 500 (675 Companies; 663 Sitting CFOs)

18

•External CFO recruitment means previous CFO of another company •Internal CFO recruitment is a result of a merger or acquisition •Operating Executive: President, VP/SVP/EVP Operations •Corporate Finance Executive: VP, SVP, EVP of Finance •Strat/MA: Investment Banking, Corporate Development, Planning or Strategy •Other: Tax, Law, IT, etc.

0%

10%

20%

30%

40%

50%

60%

70%

CFO Corporate Finance

Executive

Divisional Finance Officer

Controller Strat/MA President/COO

Treasurer Other Consulting Investor Relations

Operating Executive

Risk

External 61.4% 7.2% 6.8% 5.8% 4.8% 4.8% 2.9% 2.4% 1.9% 1.0% 0.5% 0.5%

Internal 6.7% 22.2% 8.4% 27.3% 6.9% 2.5% 16.5% 4.2% 1.0% 2.0% 1.0% 1.5%

The CFO position is the only C-Suite position with external hires in each sector

2016 External Hires by Industry 2016 Fortune 500 and S&P 500 Companies (675 Companies; 677 CEOs; 663 CFOs; 199 COOs)

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

CEO CFO COO

Consumer 14.3% 14.3% 0.0%

Energy 0.0% 19.0% 0.0%

Financial 0.0% 4.8% 33.3%

Healthcare 0.0% 4.8% 0.0%

Industrial 14.3% 19.0% 0.0%

Retail 28.6% 9.5% 33.3%

Services 14.3% 9.5% 0.0%

Technology 28.6% 19.0% 33.3%

19

Only 23% of sitting Fortune 500 and S&P 500 CFOs have public accounting backgrounds

2016 CFOs with Public Accounting Backgrounds

2016 Fortune 500 and S&P 500 (675 Companies; 157 CFOs)

*Multiple firms indicates that the individual has been employed with more than one public accounting firm. This includes Arthur Andersen, Deloitte, Ernst & Young, KPMG and PwC **Other includes BDO and an unspecified Big 4 Firm

20

0

5

10

15

20

25

30

35

40

45

PwC Ernst & Young Deloitte KPMG Arthur Andersen Multiple Other

42

36

29

22

19

5 4

9% of Fortune 500 and S&P 500 CFOs have investment banking backgrounds

2016 CFOs with Investment Banking Backgrounds 2016 Fortune 500 and S&P 500 (675 Companies; 62 CFOs with Investment Banking Backgrounds; 42 Represented)

0

2

4

6

8

10

12

Goldman Sachs Merrill Lynch JP Morgan Citigroup Lehman Brothers Morgan Stanley

12

11

9

5

4

3

*One CFO has worked for both Citigroup and Lehman Brothers **One CFO has worked for both Citigroup and Merrill Lynch

21

4.98 5.2

7.06 7.15 7.38 7.43 7.52

9.41

0

1

2

3

4

5

6

7

8

9

10

Industrial Energy Consumer Technology Services Retail Healthcare Financial

The Financial sector has the longest tenured CEOs (9.4 years)

Average Tenure in Years of 2016 Sitting CEOs by Industry 2016 Fortune 500 and S&P 500 (675 Companies; 677 Sitting CEOs)

Overall CEO

Tenure Average: 7.0 years

22

4.4

4.68 4.75 4.8 4.98 5.42 5.5

6.52

0

1

2

3

4

5

6

7

Services Energy Industrial Consumer Technology Financial Healthcare Retail

The Retail sector has the longest tenured CFOs (6.52 years)

Average Tenure in Years of 2016 Sitting CFOs by Industry 2016 Fortune 500 and S&P 500 (675 Companies; 663 Sitting CFOs)

Overall CFO

Tenure Average: 5.1 years

23

0

10

20

30

40

50

19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73

Male Female

50% of current CEOs were aged 50 or younger when named CEO

Age of Hire for 2016 Sitting CEOs 2016 Fortune 500 and S&P 500 Companies (675 Companies; 669 Known CEO Ages at Hire)

24

0

5

10

15

20

25

30

35

40

45

31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85

Male Female

The majority of sitting CEOs are between the ages 51 and 62

Age Distribution of 2016 Sitting CEOs 2016 Fortune 500 and S&P 500 Companies (675 Companies; 669 Known CEO Ages)

Average Age of CEOs in 2016

Males: 56.6 Females: 55.4

Youngest Male: Mark Zuckerberg, Facebook Inc. (32) Oldest Male: Warren Buffett, Berkshire Hathaway Inc. (85) Youngest Female: Marissa Mayer, Yahoo! Inc. (40) Oldest Female: Lauralee Martin, HCP Inc. (64)

Age Range of CEOs

25

0

5

10

15

20

25

30

35

40

45

29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63

Male Female

Over 65% of current CFOs were under the age of 50 when named CFO

Age of Hire of 2016 Sitting CFOs 2016 Fortune 500 and S&P 500 Companies (675 Companies; 633 Known CFO Ages at Hire)

26

0

5

10

15

20

25

30

35

40

45

50

35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72

Male Female

Over 60% of sitting CFOs are between the ages 45 and 55

Age Distribution of 2016 Sitting CFOs 2016 Fortune 500 and S&P 500 Companies (675 Companies; 633 Known CEO Ages)

Average Age of

CFOs in 2016

Males: 51.8 Females: 51.5

Youngest Male: Richard Dierker, Church & Dwight Company (35); Andrew Power, Digital Realty Trust (35) Oldest Male: Walter Berman, Ameriprise Financial Inc. (72) Youngest Female: Cheryl Miller, AutoNation Inc. (42); Ann Gugino, Patterson Companies Inc. (42) Oldest Female: Sandra Callahan, TECO Energy (62)

Age Range of CFOs

27

Diversity Landscape

28

*Partial Year

The number of female CEOs has nearly tripled in the last ten years

Number of Companies with a Female CEO by Industry (2004-2016) 2016 Fortune 500 and S&P 500 Companies (675 Companies; 677 Sitting CEOs)

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016*

Consumer 2 2 5 4 4 4 4 6 7 5 5 5 4

Energy 1 1 0 0 0 0 0 1 1 4 4 3 3

Financial 0 0 1 1 1 1 1 3 3 3 3 2 3

Healthcare 0 0 0 1 1 1 1 1 0 1 1 1 1

Industrial 0 0 1 1 1 4 4 5 6 7 8 5 6

Retail 2 2 2 3 3 3 2 1 1 4 5 3 4

Services 2 2 2 2 1 1 1 1 1 1 1 2 4

Technology 4 3 2 2 2 3 3 3 5 5 5 6 5

Total 11 10 13 14 13 17 16 21 24 30 32 27 30

11 10

13 14

13

17 16

21

24

30 32

27

30

0

5

10

15

20

25

30

35

29

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016*

Hispanic/Latino 6 5 6 6 6 5 5 9 10 14 14 18 16

African American 5 6 5 6 6 6 5 6 6 6 6 6 7

Asian/Indian 10 13 15 17 18 17 19 22 22 18 25 30 26

Total 21 24 26 29 30 28 29 37 38 38 45 54 49

21

24 26

29 30 28 29

37 38 38

45

54

49

0

10

20

30

40

50

60

While the number of African American CEOs has remained static, the number of Hispanic CEOs more than doubled in the last ten years

Number of Companies with Racially Diverse CEOs (2004-2016)

2016 Fortune 500 and S&P 500 (675 Companies; 677 Sitting CEOs)

30

*Partial Year

The Technology sector has the greatest number of racially diverse CEOs

Number of Companies with Racially Diverse CEOs by Industry (2004-2016) 2016 Fortune 500 and S&P 500 (675 Companies; 677 Sitting CEOs)

31

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016*

Consumer 5 5 4 4 4 4 4 5 4 4 4 6 5

Energy 1 1 1 1 1 1 1 0 0 0 1 2 2

Financial 3 2 2 4 6 4 6 6 6 6 6 7 6

Healthcare 3 3 4 3 3 3 2 5 6 7 8 9 9

Industrial 1 1 2 3 3 3 3 4 4 5 6 9 9

Retail 2 2 3 3 3 3 3 3 3 3 3 2 1

Services 0 1 1 1 1 1 1 3 4 4 5 6 5

Technology 6 7 8 10 9 9 9 11 11 10 11 13 12

Total 21 22 25 29 30 28 29 37 38 39 44 54 49

21 22 25

29 30 28 29

37 38 39

44

54

49

0

10

20

30

40

50

60

*Partial Year

The percentage of Female CEOs has increased in the past year, in contrast to the percentage of Female CFOs which has decreased slightly

Percentages of companies with Female CEOs or CFOs

2016 Fortune 500 and S&P 500 (675 Companies; 677 Sitting CEOs; 663 Sitting CFOs)

32

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016*

Female CEOs 1.8% 1.6% 2.1% 2.2% 2.0% 2.7% 2.5% 3.2% 3.7% 4.5% 5.4% 4.0% 4.4%

Female CFOs 6.6% 7.8% 8.0% 8.5% 8.6% 9.6% 8.8% 10.1% 10.8% 10.7% 12.0% 13.0% 12.7%

0%

2%

4%

6%

8%

10%

12%

14%

*Partial Year

The amount of Female CFOs mirrors its peak from last year

Number of Female CFOs in each Industry 2016 Fortune 500 and S&P 500 (675 Companies; 663 Sitting CFOs)

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016*

Consumer 3 5 5 6 5 6 5 8 9 10 12 11 12

Energy 2 3 5 5 4 7 7 9 9 6 7 9 9

Financial 4 5 6 4 10 12 12 13 11 9 12 12 12

Healthcare 4 4 2 3 4 5 5 4 4 4 5 5 5

Industrial 8 8 10 13 11 11 11 14 15 17 16 19 18

Retail 7 9 7 7 6 7 6 8 11 10 12 14 13

Services 3 3 5 7 9 8 7 6 7 6 6 4 6

Technology 6 8 8 9 7 6 6 6 7 9 9 12 11

Total Female CFOs 37 45 48 54 56 62 59 68 73 71 79 86 86

37

45 48

54 56 62

59

68 73 71

79 86 86

0

10

20

30

40

50

60

70

80

90

100

33

*Partial Year

The number of racially diverse CFOs has more than doubled over the last decade

Number of CFOs in every minority group

2016 Fortune 500 and S&P 500 (675 Companies; 663 Sitting CFOs)

34

*Partial Year

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016*

Asian/Indian 10 12 10 10 13 10 10 11 11 17 18 22 23

African American 5 5 4 4 4 4 5 6 6 8 8 7 8

Hispanic/Latino 4 4 4 5 7 6 6 6 6 6 8 9 10

Total Diverse CFOs 19 21 18 19 24 20 21 23 23 31 34 38 41

19 21

18 19

24

20 21

23 23

31

34

38

41

0

5

10

15

20

25

30

35

40

45

The Consumer industry has the largest amount of racially diverse CFOs

Number of minority CFOs in every industry 2016 Fortune 500 and S&P 500 (675 Companies; 663 Sitting CFOs)

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016*

Consumer 1 2 2 2 2 3 4 4 2 4 4 6 9

Energy 0 1 1 1 2 1 2 2 2 2 3 4 5

Financial 4 3 3 2 2 1 1 2 2 3 3 6 7

Healthcare 3 3 3 3 5 5 5 5 5 5 5 6 6

Industrial 1 1 1 1 3 3 2 2 3 4 4 5 6

Retail 0 0 0 0 0 0 0 0 1 1 1 1 0

Services 6 6 4 4 4 3 3 4 3 4 3 4 4

Technology 2 3 3 5 5 4 4 4 5 7 8 5 4

Total Diverse CFOs 17 19 17 18 23 20 21 23 23 30 31 37 41

17 19

17 18

23

20 21

23 23

30 31

37

41

0

5

10

15

20

25

30

35

40

45

35

*Partial Year

Education Background

36

Foreign Universities have currently produced the most sitting CEOs

Sitting CEO Undergraduate University Conference Affiliation

2016 Fortune 500 and S&P 500 Companies (677 Sitting CEOs; 668 Known CEO Education Backgrounds)

0

10

20

30

40

50

60

70

80

Foreign Ivy League Big Ten Conference

Southeastern Conference

Pacific 12 Conference

Atlantic Coast Conference

Big East Conference

Big 12 Conference

Patriot League

Mid-American

Conference

Number of CEOs 73 67 58 43 39 36 33 25 21 17

Harvard University 16

Stanford University 12

Cornell University 12

Princeton University 10

University of Michigan 9

Top Schools CEOs

37

The Big Ten has produced the most sitting CFOs

Sitting CFO Undergraduate University Conference Affiliation 2016 Fortune 500 and S&P 500 Companies (663 Sitting CFOs; 648 Known CFO Education Backgrounds)

0

10

20

30

40

50

60

70

80

Big Ten Conference

Foreign Atlantic Coast Conference

Ivy League Pacific 12 Conference

Big East Conference

Southeastern Conference

Big 12 Conference

Mid-American

Conference

Patriot League

Number of CFOs 75 48 47 42 38 32 30 30 23 23

University of Pennsylvania 14

University of Notre Dame 13

Indiana University 12

University of Illinois 12

Top Schools CFOs

Stanford University 11

38

Universities in the United Kingdom and Canada lead in CEO & CFO undergraduate education

2016 Top Five International Undergraduate Degree Producing Countries

2016 Fortune 500 and S&P 500 Companies (675 Companies; 73 International Degree CEOs; 48 International Degree CFOs)

39

0

2

4

6

8

10

12

14

16

18

Number of CEOs Number of CFOs

United Kingdom 18 11

Canada 10 15

India 8 7

Australia 7 4

France 5 4

Nearly 40% of CEOs have an undergraduate degree in Engineering or the Sciences

Percentages of CEOs of each educational background 2016 Fortune 500 and S&P 500 (675 Companies; 677 Sitting CEOs)

Business* 30.3%

Engineering 28.4%

Liberal Arts** 26.0%

Sciences 9.5%

Dual 5.7%

Business Administration

45.3%

Accounting 30.8%

Finance 16.4%

Other*** 7.5%

Engineering 149 Economics 89 Business Administration 72 Accounting 49 Finance 26

Top Majors CEOs

40

*Accounting, Business Administration/Management, Finance, Other **Economics is Included in Liberal Arts ***Marketing, International Business, Commerce, Logistics

Over 65% of CFOs have an undergraduate degree in Business

Percentages of CFOs of every educational background 2016 Fortune 500 and S&P 500 (675 Companies; 663 Sitting CFOs)

Business* 66.4%

Engineering 7.8%

Liberal Arts** 23.2%

Sciences 2.5%

Accounting 44.7%

Finance 24.7%

1.5% Business

Administration 29.1%

Other***

Top Majors CFOs

Accounting 152 Economics 102 Business Administration 99 Finance 84 Engineering 40

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*Accounting, Business Administration/Management, Finance, Other **Economics is Included in Liberal Arts ***Marketing, International Business, Commerce, Logistics

CEOs in the Financial and Industrial sectors lead others in education through the MBA level (49%)

CEO Educational Background

2016 Fortune 500 and S&P 500 (675 Companies; 677 Sitting CEOs)

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Consumer Energy Financial Healthcare Industrial Retail Services Technology

Bachelor's 40.0% 35.0% 32.1% 22.2% 35.5% 57.6% 34.6% 37.3%

Master's 6.2% 9.6% 5.5% 12.7% 8.4% 6.8% 9.0% 17.3%

MBA 40.0% 44.6% 48.6% 41.3% 48.6% 28.8% 46.2% 42.8%

JD 12.3% 6.0% 11.9% 9.5% 4.7% 6.8% 9.0% 1.3%

PhD 1.5% 4.8% 1.9% 14.3% 2.8% 0.0% 1.2% 1.3%

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Over half of the CFOs in this study have completed MBA degrees

CFO Educational Background 2016 Fortune 500 and S&P 500 (675 Companies; 663 Sitting CEOs)

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

Consumer Energy Financial Healthcare Industrial Retail Services Technology

Bachelor's 44.1% 35.1% 40.8% 36.5% 35.2% 41.5% 32.5% 29.3%

Master's 7.4% 4.1% 7.1% 6.3% 3.8% 5.7% 4.8% 5.3%

MBA 44.1% 58.1% 48.0% 52.4% 58.1% 52.8% 53.0% 60.0%

JD 2.9% 2.7% 3.1% 4.8% 2.9% 0.0% 8.4% 4.1%

PhD 1.5% 0.0% 1.0% 0.0% 0.0% 0.0% 1.3% 1.3%

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40% of CEOs and CFOs who hold an MBA degree attended the same eight universities

Top MBA Schools 2016 Fortune 500 and S&P 500 (675 Companies; 668 CEO and 648 CFO Known Education Backgrounds)

0

5

10

15

20

25

30

35

40

45

50

Number of CEOs Number of CFOs

Harvard University 48 26

University of Pennsylvania 14 15

Northwestern University 14 21

Stanford University 17 11

New York University 8 7

University of Chicago 6 36

Columbia University 8 16

University of Michigan 6 14

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Location and Migration

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Consumer Energy Financial Healthcare Industrial Retail Services Technology

West 15.3% 11.8% 13.5% 19.4% 11.4% 12.9% 20.2% 46.8%

South 23.6% 62.4% 19.2% 14.5% 26.7% 40.3% 31.0% 24.7%

Midwest 26.4% 14.1% 26.9% 27.4% 41.0% 25.8% 22.6% 9.1%

Northeast 34.7% 11.8% 40.4% 38.7% 21.0% 21.0% 26.2% 19.5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Breakdown of companies by industry within each geographical region

2016 Fortune 500 and S&P 500 (675 Companies)

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Regions: Northeast, Midwest, South, and West as determined by the United States Census Bureau

For externally hired CEOs, the tendency to move varies with respect to previous position

Percentages of externally hired CEOs by immediate previous position 2016 Fortune 500 and S&P 500 (675 Companies; 128 CEOs Represented)

CEO CFO COO Other

Stayed in the same region 42.1% 66.7% 57.1% 37.3%

Moved regions 57.9% 33.3% 42.9% 62.7%

0%

10%

20%

30%

40%

50%

60%

70%

*Divisional President, Tax, Law, IT, etc. Regions: Northeast, Midwest, South, and West as determined by the United States Census Bureau

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*

The Financial and Industrial sectors had the most geographic movement for externally hired positions

2016 Externally hired CEOs, CFOs, and COOs by Industry

2016 Fortune 500 and S&P 500 (675 Companies; 128 CEOs, 202 CFOs, 32 COOs Represented)

Energy Services Consumer Technology Retail Healthcare Financial Industrial

Stayed in the same region 62.2% 62.2% 50.0% 49.2% 43.6% 42.9% 39.3% 35.3%

Moved regions 37.8% 37.8% 50.0% 50.8% 56.4% 57.1% 60.7% 64.7%

0%

10%

20%

30%

40%

50%

60%

70%

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Regions: Northeast, Midwest, South, and West as determined by the United States Census Bureau

In terms of external recruitment, CEOs tended to move geographic regions more than CFOs

2016 Externally hired CEOs and CFOs by Regional Movement 2016 Fortune 500 and S&P 500 (675 Companies; 128 CEOs, 202 CFOs Represented)

CEO CFO

Stayed in the same region 43% 47%

Moved regions 57% 53%

0%

10%

20%

30%

40%

50%

60%

Regions: Northeast, Midwest, South, and West as determined by the United States Census Bureau

49