How important are the leaders of a company to its financial performance? ask industry analysts Plimsoll Publishing.
One in five of UK Security company directors will be aged over 60 by the end of 2005, according to the analysts. As these industry stalwarts near the end of their career, who will follow in their footsteps? ask Plimsoll’s in the light of their latest study of UK security’s top 1084 companies and the 2289 company directors.
David Pattison, Senior Analyst at Plimsoll, says: “The reason for most concern is that of the 923 directors that have been in
office for over eight years, 31 per cent will be aged 60 or more by the end of 2005. Is the industry facing an experience ‘timebomb’ as these veterans near retirement age?"
The full 1378 paged analysis of the UK Security industry includes an examination of the age and time in office of directors at the top 1084. It assesses how their decisions have influenced the financial performance of the companies for which they are accountable.
Directors are named in the analysis under various sections including:
Marathon runners
These 1352 directors have perhaps had the most influence over the financial performance of the companies they run. Each has been in office over five years, making their track record clearly visible. Some 17 per cent of the companies run by these directors are placed in a high financial risk category in the analysis.
Recently appointed
These directors have it all to prove but face varying challenges. Of the 447 directors that have been appointed in the last two years, 123 are working at companies that are under severe financial pressure. They need to act quickly to get these companies on a firm footing. On the other hand, 160 of these
directors have fallen on their feet and are working at financially strong companies.
Other sections of Plimsoll’s analysis look at the influence of a director’s appointment on the performance of a company over the last five years, naming those directors who since appointment have either:
1) Turned a failing company into a successful one;
2) Increased the company’s market share; or
3) Improved the profitability of the company.
A separate section covers directors working beyond retirement. There is no evidence to suggest that age is a barrier to success in UK Security, it is claimed. Of the 188 directors working beyond retirement, half are running companies rated as financially strong.
With the industry set to lose so many experienced directors, can it attract new blood? The following director statistics should prove interesting to those considering a career in the UK Security industry.
– average salary is £70,562
– average salary increased by seven per cent last year
– top earners can expect an annual salary of £136,500
– this compares with a UK average for top earners of £162,000
– average time in office is just over six years; this compares to the UK average time in office of eight years.
The 1378-page Plimsoll Security analysis is available in paper format (£305) or electronic format (£499 plus VAT). Order by calling 01642 626400. Readers of this publication will receive a five per cent discount. And visit the website:
