April 27, 2009, 10:45 AM — Perhaps we can't retire the old saw that "CIO" stands for "career is over" just yet.
Nearly one in four CIOs gets let go for poor performance, according to a new survey by CIO and Human Resource Executive. When asked why their companies' previous IT leader left, 23 percent of the 265 human resources managers polled said it was involuntary for performance reasons. The dismissal rate matched that for CFOs but was higher than that for HR managers (19 percent) and sales managers (18 percent), the survey found.
Reason Top IT Executive Left Company by Function
IT heads are the most likely among business leaders to leave their positions on their own terms to pursue career opportunities elsewhere.
 |
IS (148) | HR (168) | FINANCE (183) | MFTG. (40) | SALES (90) |
| Left voluntarily to pursue career opportunities elsewhere | 40% | 33% | 29% | 22% | 35% |
| Left involuntarily due to performance | 23% | 19% | 23% | 8% | 18% |
| Retired | 11% | 23% | 20% | 32% | 16% |
| Promoted internally | 10% | 8% | 12% | 22% | 16% |
| Left involuntarily due to restructuring / downsizing | 5% | 4% | 3% | 5% | 3% |
| Left involuntarily due to misconduct | 1% | 3% | 4% | 0% | 2% |
| Other | 9% | 11% | 8% | 10% | 10% |
And the bigger the company, the more likely the CIO will be dismissed--either fired or a victim of downsizing: 43 percent of IT heads at companies over $1 billion or more in sales left involuntarily, versus 29 percent at mid-market companies of $100 million to $1 billion and 23 percent at small companies of less than $100 million in sales. Of course, "poor performance" is open to interpretation, notes Greg Ambrose, president of Catalyst Search Group. "What a new CEO defines as poor might be exactly what the old CEO wanted," he says. The larger the organization, the more complex the issues, systems and politics, he adds.
One Out of Four CIOs Fired For Performance
Twenty-three per cent of IT heads are fired for poor performance, according to the HR executives we surveyed. CIOs at large companies are more likely to be fired or to become victims of downsizing; 43 percent of large company IT heads left involuntarily, versus 23 percent of small company CIOs and 29 percent of mid-market CIOs. Small and mid-market IT heads are more likely than their large company counterparts to leave in pursuit of other opportunities.
