Australia’s FMCG sector is confronting a leadership crisis. CEO turnover is accelerating, succession pipelines are underdeveloped, and the cost of securing top executive talent is escalating. In a landscape marked by inflation, technological disruption, and shifting consumer behaviours, the absence of seasoned leadership could jeopardise the industry's resilience and growth.
The Turnover Tsunami
In 2024, the ASX 200 witnessed
27 CEO departures, highlighting a significant churn at the top echelons of corporate Australia. Notably,
22% of these departures were part of planned succession processes, indicating a growing trend towards proactive leadership transitions.
This surge in CEO turnover is largely driven by market volatility and increased scrutiny of executive performance. The evolving demands of the FMCG sector, including digital transformation and sustainability initiatives, require leaders who can navigate complex challenges and drive innovation.
Succession Planning Shortfalls
Despite the evident need for robust succession strategies, many organisations remain unprepared. A recent survey revealed that only
13% of firms are actively working on succession planning, while a mere 17% have a successor already in place.
This lack of preparation can lead to leadership vacuums, disrupting strategic continuity and placing immense pressure on incoming leaders to deliver immediate results without the benefit of a gradual transition.
The Cost of Leadership Vacuums
Leadership gaps are more than just organisational inconveniences; they have tangible financial implications. The absence of decisive leadership can stall critical projects, erode stakeholder confidence, and ultimately impact the bottom line. In an industry where margins are already under pressure, the cost of indecision is a luxury few can afford.
Moreover, the competition for top executive talent has intensified, leading to increased remuneration packages. For instance, in the FMCG sector, CEOs of companies with revenues exceeding $1 billion have seen total cash compensation averaging $871,949, reflecting the premium placed on experienced leadership.
The Talent Drought
Compounding the issue is a
shrinking pool of qualified candidates ready to step into top roles. Factors contributing to this talent drought include:
- Experience Gaps: Many potential leaders lack the diverse experience required to navigate the complexities of modern FMCG operations.
- Retention Challenges: High-performing individuals are increasingly lured by opportunities in more dynamic sectors, leaving a void in FMCG leadership pipelines.
- Inadequate Development Programs: Organisations have underinvested in leadership development, resulting in a lack of internal candidates prepared for advancement.
The Australian corporate leadership training market, valued at USD 1.43 billion in 2024, is projected to grow significantly, indicating a recognition of the need to invest in developing future leaders.
Bridging the Gap
To address this crisis, FMCG companies must adopt a proactive approach:
- Strategic Succession Planning: Develop robust pipelines by identifying and nurturing talent well before vacancies arise.
- Leadership Development: Invest in comprehensive programs that equip potential leaders with the skills and experiences necessary for top roles.
- Retention Strategies: Create compelling value propositions to retain high-potential employees, including clear career progression paths and competitive incentives.
Embracing a New Leadership Paradigm
The challenges facing Australia's FMCG sector demand a reevaluation of traditional leadership models. Future leaders must be:
- Agile: Capable of navigating rapid market changes and consumer trends.
- Tech-Savvy: Proficient in leveraging technology to drive innovation and efficiency.
- Consumer-Centric: Deeply attuned to evolving consumer needs and preferences.
By embracing this new leadership paradigm, FMCG companies can not only weather the current storm but also position themselves for sustained success in an increasingly competitive landscape.

