Saudi’s CEOs keep getting younger and younger: The average age of newly appointed CEOs in the Kingdom fell to 47 in 2024, down from 50 a year earlier, according to a report (pdf) from global organizational consulting firm Korn Ferry.

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Seventeen of the top 100 companies by market cap on Tadawul appointed a new CEO in 2024, compared to only seven appointments a year earlier. Saudi nationals constituted the majority (88%) of newly appointed CEOs last year, up from 71% in 2023, driven by the Kingdom’s increased investment in Saudization and a shift from international hires to local leadership.

Saudi outpaced the UAE in CEO succession rates, with 17% of its top 100 publicly listed companies appointing new CEOs in 2024, compared to 7% in the UAE. Among the 10 countries studied, Saudi Arabia ranked fourth, behind Norway (21%), the Netherlands (20%), and Belgium (19%).

Some 47% of these CEO successions were planned, signaling a positive shift toward a more strategic succession planning and greater board involvement, the report reads. However, unplanned successions still accounted for 53% of all CEO transitions in 2024, driven by unexpected changes like personal choices, governance structural changes, and external influences.

ALSO- 65% of newly appointed CEOs stepped into the role for the first time, more than double the rate observed in 2023 (29%). Meanwhile, some 41% of newly appointed CEOs in 2024 had global experience, compared to 43% in 2023.

There was a strong preference for internal candidates, with some 71% of new CEOs being promoted internally, up from 43% in 2023, indicating a shift in strategy to focus more on developing existing internal talent. However, relying solely on internal candidates can limit perspectives, create developmental gaps, and maintain the status quo instead of fostering necessary change, the report cautions, recommending a more balanced approach to internal versus external hires.

Only 3 out of 17 of new CEOs also serve on their company's board, reflecting the Kingdom's move away from dual roles. This aligns with the CMA's mandatory separation of CEO and Chairman positions, aiming to ensure distinction between leadership and oversight in listed companies.

None of the newly appointed CEOs were women. However, the report sees a notable increase in the number of local women taking on Director and C-suite roles as Saudi Arabia slowly shifts toward a more inclusive environment, led by government reforms.

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