Four recruiting experts cite economic opportunities, changing board expectations for higher turnover

Association executives crowded the 9th floor meeting space of SunTrust Bank's Washington, D.C., headquarters Thursday morning, April 23, for the CEO Update LIVE Executive Recruiting Forum.

A better economy and rising board demands are increasing CEO turnover at associations and reducing tenure, a panel of search consultants told a crowded room of executives at Thursday morning's CEO Update LIVE Executive Recruiting Forum.

"This is the hottest market we've seen in a long time. We probably said that last year as well," said Jim Zaniello, president and founder of search firm Vetted Solutions. "It seems like it's 50 percent busier because CEOs are moving."

Joining Zaniello on the panel were Ivan Adler, principal with The McCormick Group, Julian Ha, government affairs and trade association practice leader at Heidrick & Struggles and Lorraine Lavet, head of the association practice at Korn Ferry. CEO Update Managing Director Mark Graham moderated the event, held at SunTrust Bank's Washington, D.C., headquarters.

"It's because boards want something different in their executive leader; it's because the economy continues to get better, so it gives the executive the comfort of moving from one group to the next," Zaniello said.

"The opportunity is there, in part, because associations are investing, they're growing, they're being seen as having an even stronger impact on the industries and professions they serve than ever before," Zaniello said.

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Adler said the economy affects executives' confidence about taking the risk of new jobs.

"At the senior level it's harder to find a new job. So (in the past) they weren't leaving because, when the music stops, ‘Is there a chair for me?' For the last six or seven years there has been no chair. Lately people think there is a chair, so they're more likely to decide to leave," Adler said.

Another reason tenure is shrinking is because success is being gauged by impact rather than years of service. Lavet is conducting a search to replace John Castellani, who announced his departure from the Pharmaceutical Research and Manufacturers Association after just five years.

"Depending on the organization, particularly those where you have a high-profile set of issues like PhRMA, the expecations are not necessarily that somebody's going to be there for a decade or more," Lavet said.

"The impact that someone makes in that tenure is more the measure of success. John's done extraordinary things," she said.

Ha said the type of executives pursuing association leadership also is a factor.

"The caliber of talent we see being interested in association jobs has risen. That has played into compensation (increases). And boards are looking very closely at executive leaders and demanding more of them," Ha said.

—Lori Sharn and Walt Williams contributed to this report.