Sage shift is the sixteenth announced change in FTSE 100 chief executive this year (the second most since 2000)

“The sudden departure of Stephen Kelly as chief executive officer at Sage, after just under four years in charge, means that sixteen FTSE 100 firms have announced a change of leader so far in 2018.

“Although one of these changes, Paul Geddes at Direct Line, will only come into effect in summer 2019, and Gavin Patterson will remain in place at BT until his successor is found, this is the second highest rate of change 2000, when sixteen bosses also left their post. 

Source: Company Accounts

“Only 2007 and 2013 have seen more changes this century, with 17 changes at the top among the UK’s corporate elite on each occasion.

 
Source: Company Accounts

“In some ways this seems odd, as 2000 and 2007 were clearly difficult years and 2013 was testing for certain sectors. 

“The tech bubble burst in the first case and the Great Financial Crisis began in the second, ushering in a recession and a multi-year bear market in share prices in both cases. In 2013, three miners – Anglo American, Rio Tinto and BHP Billiton – all appointed new leaders as they looked to adapt to a new environment of lower commodity prices and shareholder calls for greater capital discipline and debt reduction.

“On the face of it, times are nowhere near as tough now, so the number of changes is surprising, even allowing for the wretched circumstances which forced a change at Compass right at the start of the year. 

“Perhaps this is a reflection of how the underlying economy is still sluggish and generally unhelpful and pressure from investors to perform is all the greater, especially as activist investors are getting results with several interventions in the UK.

“Mr Kelly’s 46 months in office compare to the current average across the FTSE 100 of 62 (or 5.2 years).

“Just 11 FTSE 100 CEOs have been in office for more than ten years. One of those – Vittorio Colao at Vodafone – is due to hand over the reins to Nick Read on 1 October while another – Sky’s Jeremy Darroch – is about to see his firm taken over.”