It’s been reported (Daily Telegraph Dec 9 2007) that one in five CEOs in the FTSE 100 have moved jobs or been sacked during 2007 and that this is the highest number for five years.

Whilst accros the world the average tenure for a CEO is just over 2.5 years in the UK we have fared much better at over five years but this is now changing. Notable changes have been Paul Thompson of Resolution Life who managed just two years, Northern Rock’s Adam Applegarth, John Clare of DSG International, Philip Moore of Friends Provident.

The result has been that the average tenure for a FTSE 100 co is now under five years and it’s estimated that by 2017 the UK will join the rest of the world in having their top people remain in post for only 2.5 years.

Companies that have also experienced senior people departing include BP, Barclays, Logica CMG and BT

The problem with this is that whilst it might satisfy the shareholder’s needs for returns this continual change at the top does nothing but increase instability, insecurity and ultimateley profits for the rest of the organisation. The reason, there is no chance of one strategy being implemented and showing substantial results working it’s replaced with another.

Emplyees taking out high profile legal actions for discrimination seem to have had an affect on how firms are changing their attitude to diversity issues. Not so long ago high profile court cases were cited as a reason for Top Talent to leave (or not join) firms with a poor record. Indeed a positive policy towards diversity, ethics and environmental issues is fast becoming a necessary aspect of attracting and retaining talent.

The list of City firms have begun to accept that a positive policy towards diversity makes companies attractive to new hires and to top talent continues to grow. It’s interesting to note that Merill Lynch, Deloitte & Touche, PricewaterhouseCoopers, and Lehman Brothers are all championing diversity.

Diversity isn’t just being packaged as a female issue it includes Gay, Lesbian and transgender areas as well as other minority groups. Deloitte and Touche have their own version that includes not just physical impairment but mental health issues too. Lehaman Brothers have a European Director of Diversity that has stated that they have mid and year end diversity review meetings where they set aside a diversity bonus pool to those employees that have shown leadership in driving forward diversity and inclusion.

It seems that City of London firms have come to the conclusion that Top Talent is too scarce to excluding the top talent to be found in the more diverse areas of our society. It might also reduce the number of high profile court cases.