Booz & Company released last month their annual study of turnover among the chief executives of the world's top 2,500 public companies. While the report focuses on succession and the different roles that CEOs play depending on the model with which the corporate core engages with the rest of the business, Booz also shared some interesting facts on the increasing diversity among these top companies - they are increasing based in emerging economies.
For the first time since the study started in 2000, almost half the companies on the list are located outside North America and western Europe, with the number of companies in these two regions having fallen some 28% since 2000. A significant milestone was in fact reached in 2010:
More than one-quarter of the top 2,500 public companies now have their headquarters in emerging economies. Could this suggest that global enterprise is nearing a geographic tipping point? Within a few years, if this pattern continues, the companies in the world’s mature Western economies could represent a minority of our sample. Already, the Asian economies (China, Japan, rest of Asia) are the new center of gravity in terms of global market heft, with 895 companies in this year’s sample versus North America’s 772 companies and Europe’s 619 companies.
This should be unsurprising and even old news to many people, nevertheless it's interesting to note that a major consultancy sees this as an important insight.
- CEO Succession 2010: The Four Types of CEOs (strategy+business)