Next Year's Executive Appointments in Large Corporations Reflect 'Shift Key' of International, Women, Technology, and Young Leaders

UnicoSearch 'Next Year's Major Corporation Executive Appointment Trends Based on Keywords'
"Organizational Slimming, Senior Executive Replacement, Strengthening International Issue Response, Increase in Women"
"Focus on Technology, Environmental Safety, Young Leaders... Spotlight on 'SHIFTKEY'"

Analysis suggests that international, female, technical, and young leaders will be favored in next year's executive appointments. The executive organization is expected to be streamlined, with active replacement of senior executives and a large influx of executives who are flexible to change.

Global headhunting specialist Unicoserch summarized the key themes for next year's executive appointments in large corporations as the 'SHIFT KEY' on the 27th. The Shift Key is a keyboard key that, when combined with other keys, changes the text to a different meaning. It refers to talents who can collaborate with diverse organizational members to create results through change and innovation.

The SHIFT KEY for executive appointments in large corporations proposed by Unicoserch includes ▲Slimming down the executive organization (Slim) ▲High-level executive replacement (High-level Change) ▲Ability to respond to international issues (International-Issue) ▲Increase in female executives (Female) ▲Technical talents (Tech) ▲Adaptation to change (Kick-turn) ▲Environment, Safety, and Governance (ESG) ▲Young talents (Young).

First, the number of executive promotions in major groups may decrease next year, and the number of executive positions may decline. The number of executives in the top 100 companies increased continuously from 7,175 in 2022 to 7,345 last year and 7,404 this year. However, the sales and operating profits of the top 100 companies decreased compared to the previous year. This year's performance was also weaker than from 2020 to 2022. Unicoserch forecasts that the number of executives in the top 100 companies will decrease by an average of 3-4% to around 7,100-7,200 next year compared to this year. Unicoserch stated, "In the recent LG Group executive appointments, the number of promotions decreased by 10% compared to the previous year, and similar trends are likely to be seen in Samsung, SK, Lotte, and others."

With many inside directors' terms ending next year, significant changes in senior executives are expected. Unicoserch found that among approximately 3,700 inside directors in the top 30 groups, more than 1,100 will have their terms end in the first half of next year. An increase in departing registered executives will inevitably affect personnel changes among non-registered executives. Notably, 219 inside directors of subsidiaries in the four major groups (Samsung, SK, Hyundai Motor, LG) will have their terms end in the first half of next year. Among them, about 100 are at the CEO level.

There is a growing possibility of placing personnel who can quickly respond to the economic policies of the second Trump administration in the U.S. at the forefront. This is because subsidies and tariff impositions can significantly impact corporate management. In this regard, Hyundai Motor recently appointed a foreigner as CEO for the first time in its history. This appointment is interpreted as a commitment to respond swiftly and agilely to any regulations that may arise under the second Trump administration. Attention is also focused on how Samsung, SK, and others will respond in the future.

Female executives are also expected to rise. The number of female executives in the top 100 companies increased from 286 in 2020 to 463 this year, growing annually over five years. Unicoserch forecasts that the number will increase to around 480-500 in next year's appointments. Since the average proportion of female executives in OECD member countries is about 30%, but Korea's rate is only 6.3% as of this year, there is significant room for an increase in female executives.

Technical executives are also expected to increase. Unicoserch reported a notable trend of recruiting engineers in technology fields closely related to the Fourth Industrial Revolution, such as artificial intelligence (AI) and data, regardless of industry. According to a survey of CEOs in the top 1,000 companies this year, 45.5% majored in science and engineering in university, a slight increase from last year. Unicoserch said, "It will be interesting to closely observe how many engineers born in the 1980s and recruited from overseas become executives."

Attempts to change the atmosphere by placing consulting-experienced 'strategy experts' at the forefront are expected to increase. The trend of export companies responding to environmental regulations and strengthening safety management cannot be ignored. Unicoserch said, "We should watch closely whether safety and environmental experts from government or civic groups will be recruited as executives."

With owners born in the 1970s and 1980s taking the lead, executives from the MZ generation (early 1980s to mid-2000s) are likely to emerge. Unicoserch explained that a characteristic of young owners' appointments is the rapid promotion speed and the solid establishment of a close-knit system that reveals their management style. Unicoserch also expects an increase in non-owner executives born in the late 1970s and after 1980.

According to Unicoserch's survey of about 7,400 executives in Korea's top 100 companies this year, the proportion of executives born after 1975 expanded by more than 4.5 percentage points to 18.7% compared to the previous year, while those born between 1970 and 1974 increased by 3.3 percentage points to 43.9% during the same period. The growth rate was faster for those born after 1975. Unicoserch said, "Next year, executives born after 1975 are expected to exceed 20% of the total, and MZ executives born after the 1980s are likely to surpass 200 in number, exceeding 3% in proportion."