STARTING A NEW JOB CAN RESULT IN A FEW SURPRISES,but some new executives at electric utilities may be getting more than their share.
According to the Global Energy Utilities Practice, a Spencer Stuart study, electric utilities have been hiring droves of executives from outside industries (see Figure 1) to fill vice-presidential positions and above - only to lose their new recruits, often within a year.
By turning to other industries for new hires, utilities seek a shortcut on the road to competition, according to the study. In fact, many of these idealistic executives are attracted by the idea of pioneering restructuring of the electric industry. Nearly one-third of these newcomers hail from retail, a fourth come from financial institutions, and another fourth specialize in technology, telecommunications, or healthcare.