CHRO Trends 2021: Insights From Fortune 200 Chief Human Resources Officer Changes, Demographics, and Priorities
CHRO Trends 2021: Insights From Fortune 200 Chief Human Resources Officer Changes, Demographics, and Priorities
CHRO Trends 2021: Insights From Fortune 200 Chief Human Resources Officer Changes, Demographics, and Priorities
Author:
Zac Upchurch
Chief Operating Officer
Talent Strategy Group
The Talent Strategy Group CHRO Trends 2021
CHRO Trends
for 2021
I am pleased to present the fourth edition of this Chief Human Resources Officer
report that reviews trends in the Chief Human Resources Officer and Chief People
Officer marketplace and introduces the Fortune 200 new CHROs who came into the
role in 2020.
The Fortune 200 welcomed 27 new Chief Human Resources Officers in 2020, a
turnover of nearly 15%. These new CHROs represent more than 5 million employees
and oversee more than $1.6 trillion in annual revenue.
This new CHRO class continue many trends identified in previous reports such as
a further increase in female representation, a continued strong correlation between
CEO and CHRO turnover, and the trend of organizations selecting outsider CHROs
to fill their top Human Resources role. However, 2020 was also a year of immense
change as companies grappled with a global pandemic and within the United States
social and racial justice campaigns. Responding to these macro events, companies
ushered in new ways of working, more frequent communication and transparency to
employees, and increased focus and accountability to deliver superior business results
through a diverse and inclusive culture. More than ever, the CHRO role was elevated
as one critical to company value creation.
Much like the broader environment, the trends in the CHRO marketplace also
experienced change. Our analysis of the Fortune 200 new CHROs illustrates 7 key
trends in the CHRO marketplace with impacts to current and aspiring CHROs.
I wish to thank the report contributors and I look forward to working with the new
Chief Human Resources Officers and Chief People Officers to advance the field of
Human Resources in 2021 and beyond.
Zac Upchurch
Chief Operating Officer
Talent Strategy Group
THE TREND
CHRO Turnover
Declines
2020 represented the lowest overall turnover in the Chief Human Resources Officer
role since this report’s inception and a 25% reduction in turnover from 2019. 27 new
Chief Human Resources Officers came into the role of a Fortune 200 organization
in 2020, representing a nearly 15% turnover rate and implying that organizations
replace their CHRO every 6.67 years.1 Turnover within the Fortune 200 was roughly
evenly distributed by the organization’s fortune ranking. The Fortune 50 saw seven
new CHROs, Fortune 51-100 saw six new CHROs, Fortune 101-150 saw seven new
CHROs, and the Fortune 151-200 saw seven new CHROs in 2020.
The Financials sector held the highest absolute number of new CHROs with seven
CHRO changes (out of 36 organizations in the Financial sector within the Fortune
200). Hotels, Restaurants, and Leisure (67%), Aerospace & Defense (50%), and House-
hold Products (50%) represented the highest sector-specific percentage of CHRO turns.
The most frequent starting months for a Fortune 200 new CHRO were February,
July, and August with four new CHROs in each month. The global pandemic did not
appear to significantly impact the starting month for new CHROs. When compared
to the previous three CHRO Trend reports, the starting month for CHROs remained ¹19 companies in the
Fortune 200 did not
mostly constant, though total volume of starts declined in 2020 consistent with the have a verifiable or
years, a significantly lower tenure than the 6.67 year tenure for sitting Fortune 200 Examples include
Berkshire Hathaway
CHROs. The longest tenured predecessor CHRO was Michael D’Ambrose from and AutoNation.
Archer Daniels Midland, now CHRO at Boeing. The shortest tenured predecessor These 19 companies
were excluded from
CHRO was Darcy Mackay from CBRE, now Group President at CBRE. the analysis.
Retailing 3
Technology 3
September
November
December
February
January
October
August
March
June
April
May
July
THE TREND
Internal Succession
Stabilizes
Since 2017, there’s been a consistent, declining trendline for internal CHRO ses-
sion. In 2017, 70% of CHROs were internal successors compared to 61% in 2018 and
53% in 2019. 2020 saw a stabilization of internal CHRO succession where 14 (52%) of
the Fortune 200 new CHROs were internal CHRO successors.
Internal successors had an average organization tenure of over 20 years prior to
CHRO appointment. 11 (79%) of the Fortune 200 new CHROs had at least 15 years of
tenure in the company prior to being appointed CHRO. The remaining 3 (21%) new
CHROs had five or fewer years of tenure in the organization prior to CHRO appoint-
ment.
Aspiring first-time CHROs overwhelmingly progress to the top HR role through
internal succession. 100% of internal successors were first-time CHROs and internal
successors represented 88% of first-time CHROs in 2020.2
THE TREND
The Experienced
Outsider
Organizations that go external for a CHRO successor most frequently look to bring
in an experienced CHRO. In 2020, 100% of external successors of the Fortune 200
new CHROs had Human Resources domain experience and 85% of the new CHROs
were previously a CHRO. This is roughly consistent with previous years where in 2019,
82% of new CHROs were previously a CHRO. 2020 examples include:
• Donna Morris joined Walmart as EVP and Chief People Officer in February 2020,
having previously served as CHRO and EVP of Employee Experience at Adobe. Don-
na joined Adobe in 2002 and served across a number of HR domains including Talent
Management, HR Operations, and Employee Experience.
• Jennifer Weber joined Archer Daniels Midland as SVP and Chief Human Re-
sources Officer in August 2020, having previously served as EVP of HR at Lowe’s.
Prior to Lowe’s, Jennifer held a CHRO role at Duke Energy and an SVP, HR role at
Scripps.
• Elcio Barcelos joined U.S. Bancorp as SEVP and Chief Human Resources Officer
in September 2020, having previously served as SVP, Chief People and Places Officer
at Fannie Mae. Prior to Fannie Mae, Elcio held a number of Talent Acquisition and
HRBP roles in companies like DXC Technology, Hewlett Packard Enterprise, Wells
Fargo, and Bank of America.
Breaking with the 2019 trend, the majority (55%) of 2020 external CHRO successors
moved to a smaller company than the predecessor company.3 And unlike CEOs where
industry/sector experience is an important consideration to selection of an external
CEO successor, there appears to be limited importance placed on industry or sector
experience when selecting an external CHRO successor. Just 27% of external succes-
sors in 2020 had previous experience in the sector of their new company.
27 %
based on 2020 fig-
of external successors in 2020 ures. In 2019, 100%
had previous experience in the of external CHRO
sector of their new company successors moved to
a company that was
larger than the prede-
cessor company.
THE TREND
3.5x 54
CHRO is over
%
ED
RE
P
AC
of organizations that
LA
PL
CE
THE TREND
Female CHROs
Dominate
The female CHRO continues to be a beacon for female representation within lead-
ership teams. Over three-fourths (78%) of the Fortune 200 new CHROs were female.
Overall, the Fortune 200 CHROs are 70% female and 30% male. This represents the
largest overall female representation in the CHRO role since this report’s inception.
Leadership teams with a female CHRO had more balanced gender representation
than leadership teams with a male CHRO. On average, the leadership teams of the
Fortune 200 new CHRO companies were 70% male and 30% female.4 If the CHRO is
male, the leadership team skews towards increased male representation at 75%. This
is contrasted to if the CHRO is female, the leadership team has higher than average
female representation at 31%.
Driving the increase in female CHRO representation is the shift of outgoing male
CHROs for an incoming female CHRO. Just over half of the time (58%), an outgoing
CHRO was replaced with an incoming CHRO of the same gender (male for male or
female for female). An outgoing male CHRO was replaced with an incoming male
CHRO 22% of the time while an outgoing female CHRO was replaced with an incom-
ing female CHRO 76% of the time.
⁴ Based on leadership
team designations
displayed on compa-
ny websites.
22% 76%
vs
31% 25%
Female Female
78% 24%
THE TREND
93 %
Role Prior to CHRO Appointment of Fortune 200 new
CHROs had depth in
Human Resources
42% 42%
THE TREND
The CHRO’s
“Second Act”
Outright retirement is a rarity for outgoing Chief Human Resources Officers
where 27% of outgoing Fortune 200 CHROs retired without plans to continue
employment elsewhere. A surprising 50% of outgoing CHROs moved into a new
CHRO role or equivalent, the majority of which (55%) moved to a smaller company
as measured by the company’s market capitalization. An additional 16% serve on
Board(s) and/or are independent consultants. 2020 examples include:
• Brent Hyder, previously Chief People Officer of Gap, Inc. (Fortune 199), joined
Salesforce (Fortune 190) as the President and Chief People Officer.
73% of outgoing
Fortune 200 CHROs
have a “Second Act.”
Walmart Donna Morris EVP, Chief People Officer Outsider Female Yes
Fannie Mae Jeffery Hayward EVP, Chief Administrative Officer Insider Male No
International Business Machines (IBM) Nickle LaMoreaux SVP, CHRO Insider Female No
Archer Daniels Midland Jennifer Weber SVP, CHRO Outsider Female Yes
Goldman Sachs Group Bentley de Beyer Head of Human Capital Management Outsider Male No
U.S. Bancorp Elcio R.T. Barcelos SEVP, CHRO Outsider Male Yes
McDonald's Heidi Capozzi EVP, Chief People Officer Outsider Female Yes
Cognizant Technology Rebecca Schmitt Chief People Officer Outsider Female Yes
Marsh & McLennan Carmen Fernandez Chief People Officer Insider Female No
CONCLUSION
Zac Upchurch
Chief Operating Officer, Talent Strategy Group
[email protected] @ZacUpchurch zupchurch
Zac directs the daily operations of the Talent Strategy Group, including strategy,
research, and finance across all lines of the TSG business. He frequently consults
with the Boards and Executive Teams of the world’s most advanced organizations on
Human Resources and Talent Management with a focus on the intersection of people
and organizations, and enabling the full potential of both. Zac graduated Summa
Cum Laude from Arizona State University with a Bachelor’s of Science in Economics.
He can be reached at [email protected].
The Talent Strategy Groups helps the world's highest performing organizations
transform Human Resources and their ability to grow talent. Our advisory services
include HR strategy, organization design, HR leader assessment, and HR process design.
We partner with private equity firms on deal generation, due diligence, and value creation
plans from a talent focus. Our education and development services are based at our Talent
Management Institute, which is the world's most popular executive education program on
talent. We teach executives and HR leaders how to build better talent, faster through our
public and private programs. We advise public and private companies, NGOs, and public
sector organizations across geographies and industries. More information is available at
www.talentstrategygroup.com.