Blue-chip chiefs hold on to their jobs for longer

It may still be a jungle for those leading Britain's largest companies, but the struggle appears to be getting easier. FTSE 100 chief executives are managing to hold on to their jobs - and their hefty pay packages - for significantly longer than before, according to a survey published yesterday.

The average life of FTSE 100 chief executives has risen to five years, compared with just over four and a half years in 2003 and less than four and a half years in 2002, Cantos, an online business media organisation, said.

The longest serving chief is Sir Ken Morrison, the eponymous head of the supermarket chain Wm Morrison. Sir Ken, 72, who pulled off a transformational takeover of its rival Safeway earlier this year, has been in charge of Morrison since it listed in 1967.

Close on his tail is John Ritblat, the chairman and chief executive of British Land, who has held his position for nearly 35 years. Sir Martin Sorrell, the chief executive of the international advertising group WPP, is in third place, having notched up just over 18 years in his job.

Last year, the top job changed hands at 11 members of the FTSE 100. That was down from 19 in the previous year.

The trend towards longer tenures at the top goes some way to challenge the argument often used by companies that they need to pay their senior executives bumper salaries to reflect the precariousness of the positions.

The findings also show that those whose stints in the driving seat are longest tend not to adhere to what is perceived to be best practice in corporate governance in a number of areas. Until recently, Sir Ken had no non-executive directors on the board of Morrison and he has indicated he wants his son to succeed him at the helm of the company. Mr Ritblat held out against splitting the roles of chairman and chief executive of British Land, in contravention of most major corporate governance codes. Sir Martin has come under fire over his pay package at WPP.

Andrew Tusa, the head of corporate governance at Deutsche Asset Management, said the increased stability in chief executives' jobs reflected the recovery of the stock market conditions they operated in.

"The shake-out with over-valuations and investor disquiet has happened. Those companies which were most exposed have made the necessary changes at the top level and we are looking at a more business-as-usual situation when executives can get on to fulfil strategy," Mr Tusa said.