Non-performers face the axe  ( December '27,2000, ET)

THE REVOLVING doors of corporate India's corner rooms are finally beginning to turn. And while they may not as yet be spinning, as those in the US are, the average tenure of the desi CEO is definitely getting shorter.

Consider this: 250 of the top 500 companies in India have found new CEOs and the CEOs of another 150 companies are expected to change over the next three years.

But while the average tenure of the Indian CEO may still be far higher than those in the US, given that most Indian businesses are family-run, it is coming down.

More than 1,000 US CEOs have left office over the past 12 months alone, with one-third of them departing since September 1. That is, over 330 CEOs on the street in less than four months. This trend has not been restricted to America.

Two-thirds of all major companies worldwide, have replaced their CEO at least once since 1995, according to a recent survey. The reasons for their departure aren’t too hard to see.

Most of the CEOs in the US that stepped down from their jobs, had to leave for not meeting shareholder expectations. Those that left of their own free will, did so to realise their dreams of turning entrepreneurs.

Back home, while most CEOs have left for greener pastures or to realise the entrepreneurial streak in them, it is expected that as boards and institutional investors become more demanding and unforgiving, an increasing number of CEOs are going to get the boot for non-performance.