Less tolerance for failure in Australian boardrooms means chief executives are more likely to be shown the door here than in other countries, according to a global study.

And that harsh attitude might also be creating boards of directors, and CEOs, with risk-averse mind-sets, the latest Booz Allen Hamilton global survey of chief executive turnover has found.

Business Council of Australia president Hugh Morgan called for a debate on the findings, which he said showed 'Australia is running down its executive management resources faster than is desirable'.

'We are in an age of debate about short-termism and this research adds to the database,' he said. However, Mr Morgan added that debate had to be within the context of Australia's recent corporate success.

The survey of the world's 2500 biggest companies shows that CEO turnover in Australia remains higher than in other parts of the world: one in seven Australian chiefs changed or lost their jobs last year, compared with fewer than one in 10 elsewhere.

With shareholders showing little tolerance for failure and the companies coming under massive scrutiny in a relatively tiny market, Booz Allen Hamilton director Marion Skulley said boards needed to manage growth carefully to avoid becoming risk-averse.

She said this encouraged boards and chief executives to take a more short-term focus. 'We suffer from short-termism and that means keeping on managing on a cost-reduction basis rather than looking at avenues for growth through strategies that are more risky,' Ms Skulley said. [...]

[clb: Canadian CEOs and board directors do little better, also easily suffering the dangers of short-termism.]