Marketing Leaders have the highest churn in the Leadership Team and by default the most settlement agreements. But why does this happen, how often is it likely to happen in a career, what should you ask for if it happens, what is the experience like? Outlined below are the results of a survey about 73 senior marketers in Q4 2023.
If you are a senior marketing leader, you’ve probably read the median tenure in role is just over 2 years1, the lowest in the Leadership Team. This means every year many marketing leaders are exiting early and receiving some sort of settlement agreement (SA).
But why does this happen, how often is it likely to happen in a career, what should you ask for if it happens, what is the experience like and what are the lessons?
Marketing leaders are increasingly struggling for tenure in role. It’s been widely written about and there are many explanations. My hypothesis is the increased pressure for growth combined with a growing misunderstanding about the marketing role. No other leadership role has experienced so much change, and this means there is a growing gap between expectation and reality.
Inevitably when there is confusion people get caught in the crossfire and his leads to early exits for many of us.
This is not something you can easily read about and validate. The nature of a settlement agreement means you can’t talk about the deal, making it something of a taboo subject.
To normalise the issue I carried out an anonymous survey of 73 marketing leaders at a Marketing Director, VP or C-suite level through Q4 2023.
The sample were mainly Marketing Academy Fellows, plus others in my senior marketing network. Respondent backgrounds covered a variety of industries across the EMEA geography, but biased mainly to the UK. The respondents also had a range of career lengths from 10 to nearly 40 years, which were used in the analysis. The results excluded any dismissals for gross misconduct etc.
The full details are below, but some headlines:
- The average number of SAs across all tenures is 2 and the highest at 6
- In the first 20 years of a career, 8/10 respondents had at least 1 SA
- Over the next 10 years, 2/3rd had on average a further 1.7 SAs
- Those with over 30 years in marketing had on average 3 SAs
- Across the whole study, less than 1/10 have not had a SA
- The median SA package expectation for a 2 year tenure was 1 year’s salary
- SA came as a surprise to 9/10 and whilst most left on good terms almost all felt their wellbeing was affected by the process
- 8/10 agreed the CEO’s departure or the CEO relationship was the key reason for their exit
- 8/10 agreed they’d want to understand the CEOs leaderships style and C-suite attitude to marketing before they started their next role
The range of settlement agreements varied significantly. There were five tiers:
- Tier 1: Nearly everyone had a core lump sum severance package
- Tier 2: 2/3 received payment for unused holiday, annual bonus and LTIPs
- Tier 3: Approx 1/2 retained their medical insurance and had outplacement costs
- Tier 4: 1/3 kept their phone and any other desktop equipment
- Tier 5: 1/8 negotiated retraining costs, retaining a personal coach or something else
My five observations and recommendations for all senior marketers based on the results:
- Don’t be surprised if an early exit happens. Chances are it will happen every 10 years and it could come out of the blue, so at least biennially, review your position and keep external networks warm
- Don’t worry if it happens. Most senior marketers have been through this experience, so if it’s happening to you, connect with others for support.
- It is very unlikely to be due to your performance. It’s more about the CEO, so keep building this relationship as much as you can.
- The SA process can be quite rigid and difficult. You’ve a 50/50 chance you will be able to influence it and especially get softer financial benefits, to take time to think and don't let it take control.
- The exit experience is a step into the unknown. Getting your company to pay an outplacement fee can help. These fees are typically £5-10k and usually you can allocate to a business of your choice.
On the last point, over the last year feedback about outplacement agencies has been patchy. They can feel like a ‘one size’ cookie cutter approach, where business leaders can be mixed with totally different sectors, so the approach the models become generic. If you want something more tailored and personal please get in touch. Working with headhunters, ‘in-between’ candidates, coaches and outplacement companies we've put together a step-by-step process which makes the uncomfortable comfortable (everything from SAs to CVs, headhunters to LinkedIn, personal brand to personal coaching, career strategy to job-hunting strategy). It enables you to unpack your last job, define you and where you want to go next and then have very practicals steps to get you there.
Hopefully this information has helped normalise exits/SAs and will encourage more marketers to talk about it more. If you have found this process helpful, please share with others because this taboo needs to be broken and improve people's wellbeing.
Gareth Helm
Marketing Leadership Churn & Settlement Agreements Survey Results
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