July 2021

Last week, two CEO candidates packed a bag, kissed their dogs goodbye, and boarded airplanes. Both visited a company’s headquarters, met the management team, and had dinner with the board. (One dinner was so fun, they closed the restaurant down.) Despite several competing opportunities, both candidates were smitten. The board favored one candidate going into the trip, and in an interesting about-face, the underdog emerged as the victor. “Great on Zoom” didn’t translate in person, and factors like active listening, ability to lead with influence (rather than muscle), and ability to inspire and engender trust won the day.

I love this story. While we’ve worked remotely, we’ve hired remotely, and we’ve been pretty good at it, the circumstances have led to some new (and sometimes undesirable) dynamics. Last week, my colleague Bizzy Balaraman and I got together IRL (look that up… you’ll need it) to talk through this and found some common threads. As we continue to flex and hybrid and all the other words we use now, we wanted to share what we’re seeing in the market these days:

• Left-at-the-altar heartbreaks – It’s so painful to lose a favorite candidate, but the sting is especially acute after a prolonged negotiation and verbal acceptance. We experienced these last-minute rejections more over the past 15 months than ever before. (My theory on this relates to the opening story. Chemistry, humanity, loyalty… these are critical factors when important decisions are at stake.)

• Intense negotiations – Candidates are sharing offer details, choosing their favorite comparables, and ratcheting up equity demands. (Caution: The smartest companies have a balanced view of compensation. Beware the ‘kitchen-sink’ offers… there’s probably a reason.)

• Stepping WAY up – ‘Rising stars’ are not a new thing, but we’ve seen some significant stretch hires into the C-suite over the past 15 months, which we chalk up to the talent supply/demand issue.

• Key-(wo)man risk – Six weeks into a search, we’re down to two candidates… and one takes another job. Brutal. The biotech market is moving at light speed. We need to be decisive and efficient to land the best talent. Lengthy processes and 15-person interview panels will leave us in the dust.

• In-person “rebound” – Most CEOs and boards still prefer local candidates and/or those who will relocate. This depends on the role and the CEO, but C-suite leaders are expected to be accessible and ‘in the mix.’ First-time CEOs are especially keen to have the management team close.

Do these resonate with you? What trends have you observed? [And hi gang! I can’t wait to see you again!]

Be well,

Jackie