Long-serving CEOs: how long is too long?

Singapore

HOW long a chief executive officer (CEO) stays at the helm is not a big issue for listed companies, as long as the firm keeps performing well, market observers have said. But some risks can arise if this chief becomes too entrenched, which could make the board's decision-making and succession planning more difficult, they added.

Their observations followed a Business Times scan of CEO tenures at Singapore-listed companies with market capitalisations of at least S$1 billion, in light of CEOs' optimal length of service and its effect on company performance coming under increasing scrutiny against a business backdrop of rapid changes and technological disruption.

BT's study found that the median tenure of 91 CEOs - out of the 95 primary listings on the Singapore Exchange for which sufficient information was availab…