Australian economy: Companies look to replace underperforming executives in tough economy

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It’s about doing more with less and finding leaders who can operate in that environment, says the managing partner at an executive search firm.

Already a subscriber?San Churro chief executive Kerri Wane and her team spoke to 108 candidates and shortlisted 28 before hiring Jarrod Appleby as the company’s new chief operating officer.

But Emu Search managing partner, Luke Marshall, who helped recruit Mr Appleby, said about 90 per cent of his firm’s work came from leaders asking his recruiters to find replacements for underperforming executives.“It’s doing more with less and finding leaders who can operate in that environment,” Mr Marshall said.

Hiring was particularly strong in manufacturing, private-equity-backed healthcare, non-discretionary consumer goods and companies linked to the energy transition, he said. “There’s a greater focus on and refreshing critical roles across leadership teams – and that’s quite consistent with other economic downturns that we’ve seen in the past,” Mr Johnson said, adding that CFOs and treasurers were particularly common replacement targets.He said his firm had also experienced strong demand for “sustainability and energy transition evangelists, data and digital natives, customer champions, cybersecurity, AI, robotics and technology leaders”.

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