The average tenure for Chief Operating Officers in FTSE 100 firms has dropped to 2.7 year, amid massive transformation efforts driven AI, disruption of supply chains and increased complexity on global markets.
According to the new COO Turnover Index published by Russell Reynolds Associates. Data shows that the FTSE 100’s COO tenure has decreased by 36 percent over just a year – going from 4.2 to 2.7 in Q1 2025. The role was once heavily focused on operational efficiency but is now heavily shaped cross-organisational change agendas. This includes everything from products and technologies to people and processes.
The COO’s tenure is also short globally. Since 2019, the average tenure of COOs at large listed companies is 3.2 years. S&P 500 has a figure of 3.25 years. In comparison, CFOs and CEOs usually stay in their positions for between five and seven years.
This pattern, according to the findings is driven primarily by the nature and scope of the assignments. Most leaders are assigned to oversee a transformation cycle, then move on to a new challenge, rather than continue in a static role.
The path to CEO positions is through operational transformation
Data also shows a change in the way organisations perceive operational leadership. The experience COOs have in delivering transformation programmes, especially those that involve AI, makes them the best candidates for CEO roles. Russell Reynolds Associates 2024 CEO Turnover Index shows that 22 percent of the new CEOs appointed to 2024 held COO roles.
Gregory Gerin is a European COO Practice Specialist at Russell Reynolds Associates. He said: “The role of the COO is not just about efficiency in operations, but also about managing constant change.” It requires a level of creativity and agility which previous operational leaders often lacked.
The role is highly complex due to the combination of sustainability, artificial intelligence, disruptions in supply chains, shortages of raw materials, and geopolitical forces. Leaders who are able to make decisions based on incomplete information and operate in an ambiguous environment will be the most successful.
Talent shortage leads to internal appointments
Finding experienced COOs has become increasingly difficult, according to the report. Companies are relying on their internal talent pools to fill the void. In Q1 2025, 81 per cent of COOs were appointed from within an organisation. 88 percent of these COOs were new.
S&P 500 showed a preference for internal candidates, with 94 percent of all appointments being made by internal candidates. All were first-time COOs. In the FTSE 100, there was a better balance with 50% of the new appointments coming from internal promotions and 50% coming from experienced external hires.
Gerin stated, “COOs usually last around three years – as long as the transformation project they are working on. Many people who do not reach the position of CEO are looking for new challenges, especially following periods of cost-cutting. Many people are looking for a new challenge after making difficult decisions which affect their staff.
Female representation in COO roles sees uneven progress
The lack of gender diversity in the role of COO is a major challenge. Only 13 percent of the COOs who were appointed worldwide in 2024, down from 19 percent in 20,23, were women. This decrease brings the 2024 number below the six-year median of 14.2 per cent, highlighting persistent problems with gender representation.
The pipeline to COO roles is still limited due to the challenges of attracting and retaining more women in STEM fields and in operations-focused paths. There are signs that things may be improving. In Q1 2025 21 percent of the new COOs are women, which suggests that this trend is reversing.
