50 Facts About Chief Operating Officers (COOs) [2025]
The Chief Operating Officer (COO) has emerged as one of the most dynamic and strategically vital roles in today’s corporate landscape. Once seen primarily as the CEO’s second-in-command, focused on operational efficiency, the COO is now at the forefront of transformation—driving digital adoption, strengthening resilience, advancing sustainability, and leading workforce strategy. The scope of the role reaches across every corner of the enterprise. From stabilizing global supply chains and mitigating cyber threats to spearheading generative AI initiatives and upskilling talent, COOs have become the architects of agility and growth. Their influence extends well beyond internal operations, elevating their visibility with boards, investors, and employees, and making operational leadership one of the most sought-after executive competencies worldwide.
The data highlights just how critical this role has become. Turnover among COOs has fallen to multi-year lows, reflecting boards’ preference for continuity in operational leadership. Internal promotions dominate, signaling strong investments in grooming talent from within. Women are regaining ground in COO appointments, though representation gaps persist. Compensation packages are rising sharply, with top COOs often earning well into seven figures. Whether through automation at scale, ESG accountability, or AI-enabled transformation, COOs are shaping the competitive future of global business. As you scroll, you’ll find 50 research-backed facts and trends that capture how COOs are redefining leadership today.
50 Facts About Chief Operating Officers (COOs) [2025]
1. COO Turnover Hits a Low in 2025 (36 vs 62 Departures)
Chief Operating Officer turnover is stabilizing. In the first half of 2025, only 36 COOs at major public companies left their roles, down sharply from 62 departures in H1 2024. This marks the lowest mid-year turnover since tracking began in 2019. Executive search firm Russell Reynolds Associates notes that boards are placing a premium on continuity in the COO position, especially as COOs take on larger transformation mandates (e.g., AI initiatives). Fewer sudden exits suggest companies are retaining their operations chiefs to steer long-term projects. By keeping COO departures in check, organizations aim to maintain operational stability and avoid disruptions. The trend in 2025 indicates that the rapid churn seen in prior years has begun to slow, reflecting a more steady state for COO tenure.
2. COOs Staying Longer: Average Exit Tenure Up to 3.9 Years
Chief Operating Officers are holding their roles for longer durations. When COOs departed in early 2025, they had served an average of 3.9 years in the position. This is a noticeable rise from the 3.3-year average tenure for exiting COOs observed in 2024. The increase suggests that companies are benefiting from more stable operational leadership. Longer tenures can be attributed to COOs seeing major transformation projects through to completion and being rewarded with extended trust by CEOs and boards. Russell Reynolds Associates links this stability to COOs’ expanding role in overseeing complex initiatives like AI-driven change, which encourages companies to keep proven leaders in place. In short, COOs are no longer just short-term fixers – they are increasingly staying on to provide sustained operational continuity.
3. 81% of New COOs in 2025 Were Internal Promotions
Companies overwhelmingly promote COOs from within their ranks. In the first half of 2025, a striking 81% of newly appointed COOs were internal hires (existing employees) rather than external recruits. This internal promotion rate – the highest in several years – reflects a strong focus on succession planning. Organizations appear to favor candidates who already possess deep institutional knowledge of company processes and culture. According to executive recruiters, CEOs value insider COOs who can hit the ground running and lead transformations with minimal learning curve. Spencer Stuart’s research likewise finds that about 79% of Fortune 500 COOs are insiders promoted from within. By grooming internal talent for the COO role, companies ensure their operations leaders understand the business intimately. This trend underscores the importance of leadership development pipelines for operational roles.
4. Women COOs Bounce Back to 17% of New Appointments
Female representation in the COO ranks is recovering after a dip. Women comprised 17% of new COO appointments in the first half of 2025 – a rebound to the average level seen in recent years. This is a sharp improvement from H1 2024, when female appointments had plunged to only 7% of new COOs. The latest data (from Russell Reynolds Associates) indicates that companies have renewed efforts to tap into female leadership talent for the COO role. However, even at 17%, women remain a small minority of incoming COOs, highlighting the continued gender gap in operations leadership. The upswing in 2025 suggests progress, possibly driven by diversity and inclusion initiatives and a broader talent pool. Boards are being encouraged to challenge traditional profiles and consider more women for COO positions to unlock a wider spectrum of leadership talent.
5. Only 13% of 2024’s Global COO Appointments Were Women
Women remain underrepresented in COO roles worldwide. Across major public companies globally, females accounted for just 13% of all new COO appointments in 2024. Out of 130 COO hires tracked that year, only 17 were women. This imbalance shows that despite some high-profile female COOs, the role is still largely dominated by men. Regionally, the share of women varied: in 2024, women were 15% of new COOs in the US S&P 500, ~14–16% in Europe and Australia indices, but only one woman was appointed in the UK’s FTSE 100. Executive firms note that the pipeline of women in operations and general management roles needs to grow for this percentage to rise. While initiatives are underway to mentor and sponsor female leaders in operations, the COO gender gap persists. Companies that broaden their search for COO candidates could tap an underutilized pool of female talent.
Related: How to Become a Chief Operating Officer?
6. Global COO Hiring Near Record High – 130 Hires in 2024
The demand for COOs remains elevated worldwide. In 2024, companies tracked in a global index made 130 COO appointments, approaching the record level of 136 seen in 2022. This sustained high volume of hiring suggests that firms across industries continue to create or refill the COO position to strengthen execution. In the US, 39 COOs were appointed in the S&P 500 alone during 2024. Other markets also saw numerous new COOs (e.g., Australia’s ASX 200 had 25, the UK’s FTSE 100 had 7). The elevated hiring aligns with a post-pandemic “COO resurgence” noted by McKinsey, as companies facing operational complexity increasingly find value in a dedicated COO role. High turnover in 2022 and 2023 meant many open positions to fill, but by 2024, the churn remained high. The near-record appointments indicate the COO role is still considered crucial by many large enterprises, even after some past declines.
7. Only 17% of Fortune 500 COOs Have Held the COO Title Before
Experience as a COO is not a prerequisite to becoming one. In the Fortune 500, just 17% of sitting COOs previously served as a COO elsewhere; most arrive from P&L, operations, finance, or transformation roles. This helps explain the short average tenure and the surge in first-time appointees—boards increasingly value adjacent experience (GM, supply chain, or transformation leadership) over repeated title cycles. For succession planning, this means two things: invest in rotational pathways that give high-potential operators exposure to end-to-end value chains, and ensure structured coaching on board reporting, enterprise risk, and cross-functional governance for first-time COOs. The data also suggests recruitment markets for “experienced COOs” are thin, reinforcing why internal pipelines are winning.
8. 74% of New COOs Have Never Held a COO Role Before
Most companies choose first-timers for the COO job. Nearly three out of four COOs appointed in 2024 were “first-time” COOs, meaning they had never before held the COO title at a prior company. An analysis by Russell Reynolds showed 74% of the year’s new COOs were stepping into the position for the first time. Similarly, a Spencer Stuart study finds only 17% of sitting Fortune 500 COOs have prior experience as a COO elsewhere (83% are in their first COO post). This trend suggests that organizations often promote high-performing executives from other roles (like division presidents, general managers, or CFOs) into the COO seat rather than hiring veteran COOs. Companies may value fresh perspectives and company-specific knowledge over prior title experience. It also reflects that the COO role is not a fixed career track – leaders from various backgrounds can step into it. The implication for aspiring COOs is that broad operational experience and leadership skills can matter more than having been a COO before.
9. OT Cyber is Now an Operations Risk: 55% Faced Productivity-Hitting Outages; 52% Revenue Impact; Only 3% of Firms Make the COO the Ultimate OT Security Owner
COOs increasingly shoulder frontline responsibility for cyber resilience because intrusions are directly disrupting plants and logistics. Fortinet’s 2024 global OT survey reports 55% of organizations suffered operational outages affecting productivity, 52% reported revenue-impacting outages, and 48% saw physical-safety risk after OT intrusions. Ransomware/wiper incidents jumped from 32% (2023) to 56% (2024)—yet only 3% say the COO is ultimately accountable for OT cybersecurity (ownership is consolidating under CISOs and network engineering leaders). Dragos’ 2025 review similarly logged 1,693 ransomware attacks on industrial organizations in 2024 (+87% YoY), with 75% causing partial and 25% full OT shutdowns. Translation for COOs in manufacturing, energy, and transport: embed joint COO–CISO governance, segment OT networks, and rehearse plant-level incident command to protect OEE, throughput, and safety, according to Fortinet and Dragos.
10. Rapid COO Turnover: 12% Changed Within 6 Months
A notable share of COO seats sees very quick turnover. A Spencer Stuart analysis found that 12% of Fortune 500 COOs had been in the role for six months or less as of mid-2024. In other words, roughly one in eight large-company COOs were brand new, having replaced a predecessor within the past half-year. This indicates a fairly high churn rate for the position in a short time frame. Such rapid turnover can occur due to sudden departures, firings due to performance issues, or reshuffling when a CEO leaves and the COO either succeeds them or exits. The COO role’s evolving nature – often lacking a fixed scope – might contribute to these short stints. A 2024 survey by NovoExec similarly reported a 27% annual turnover rate for COOs, higher than for most other executive roles. Together, these figures highlight that stability is not guaranteed in the COO office. Companies may need contingency plans given how frequently a COO might change in a year.
Related: COO Interview Questions & Answers
11. 53% of Fortune 500 Companies Have No COO Position
Many large companies operate without a COO altogether. More than half of Fortune 500 firms – about 53% – do not have a Chief Operating Officer on their organizational chart. This striking statistic, cited from Spencer Stuart research, shows that the COO role is far from universal. In companies without a COO, other executives (like the CEO, CFO, or division presidents) often absorb the traditional duties of a COO. For example, the CEO might directly oversee operations, or a Chief Financial Officer might also handle operational logistics. This paradox – the COO role being simultaneously crucial yet sometimes vacant – reflects differing management philosophies. Some CEOs feel they don’t need a COO or prefer not to have a second-in-command, potentially overlapping their role. Notably, the prevalence of COOs has declined from past decades; McKinsey notes that back in 2000, nearly 48% of Fortune 500 companies had COOs, dropping to around 32% by 2018. While the role is experiencing a resurgence now, it’s clear that many companies can and do run without a COO, especially in certain industries or smaller firms.
12. COO Role Rebounding: 32% in 2018 to 40% by 2022
After a decline, more companies are again adopting the COO role. At the turn of the millennium, almost half of large companies had COOs, but by 2018, only 32% of Fortune 500/S&P 500 companies still maintained a COO position. This drop led some analysts to talk about a “decline of the COO.” However, recent data shows a rebound – about 40% of leading companies had a COO by 2022. The post-pandemic business climate has driven this comeback. According to McKinsey, as CEOs became more externally focused (managing investors, media, and stakeholders), the need grew for a strong internal operations counterpart. Companies realized that turbulent times (such as supply chain disruptions and rapid digital change) require a dedicated executive to ensure resilience and execution. Sectors that cut COOs in the 2010s have begun bringing them back to navigate complexity. In short, the COO role is rising in prominence again after a period of falling out of favor, underscoring its enduring value in executing strategy.
13. Finance & Energy Lead in COOs: 48% of Firms Have One
Certain industries are far more likely to employ a COO. In 2022, the financial services and energy sectors had the highest prevalence of COOs, with about 48% of companies in those industries having a Chief Operating Officer. This is above the ~40% average across leading companies. Banks, insurers, and energy companies often face complex operations spread across geographies or regulatory environments, making a COO role important for coordination. By contrast, some sectors (like technology or media) historically have fewer COOs, especially in founder-led firms where the CEO often also acts as operations chief. But even in tech, fast-scaling companies eventually add COOs as they mature. A Heidrick & Struggles study noted that fintech startups frequently bring in COOs once they reach a certain growth stage. The high 48% in finance and energy suggests that industries with heavy operational or regulatory demands rely on COOs the most. They serve as the CEO’s right hand to keep day-to-day processes running smoothly in these complex businesses.
14. Nearly Half of New CEOs in 2023 Were Former COOs or Presidents
The COO role is a prime stepping stone to the CEO position. In 2023, 45.3% of CEO vacancies in large companies were filled by executives who were COOs or Presidents immediately prior. This finding comes from the Crist Kolder Volatility Report, which tracks executive moves. It underscores that the most common path to the corner office runs through the COO (or equivalent operations leadership) role. Companies often groom their chief operating officers as heirs apparent if they prove capable. Notable examples abound of COOs who later became CEOs of their organizations. McKinsey also observes that in 2021, about 27% of Fortune 500 CEOs had been promoted from the COO role – more than from any other internal role. The logic is straightforward: a successful COO has intimate knowledge of the business operations and has shown they can execute strategy, making them well-suited to take the top job. For ambitious leaders, excelling as a COO or divisional president significantly boosts one’s chances of becoming CEO.
15. High COO Turnover Rate at ~27% Annually (Exceeds Other Execs)
COO positions experience higher churn than most C-suite roles. According to a 2024 leadership study by NovoExec, the annual turnover rate among Chief Operating Officers is about 27%. This means over a quarter of companies change their COO in a given year – a figure notably above average turnover for other executive positions. Several factors contribute to this high rate: the COO’s performance is highly visible and tied to operational results, so any major execution issue can lead to a swift exit. Additionally, as discussed, many COOs leave to take CEO roles elsewhere or internally (creating vacancies). There’s also the possibility of role confusion and conflict – the COO’s responsibilities sometimes overlap with those of the CEO or other executives, leading to strategic clashes that precipitate departures. Harvard Business Review has noted that a mismatch in vision or trust between a CEO and COO often ends with the COO moving on. The 27% churn underlines that the COO role, while critical, can be volatile and short-lived compared to, say, CFOs or CIOs, which tend to have slightly more stability.
Related: How Can COO Excel in Negotiation and Conflict Resolution?
16. 60% of COOs Want a Title Change Reflecting Expanded Role
A majority of COOs feel their traditional title doesn’t capture their evolving duties. A global survey by BNP Paribas in 2020 revealed that 60% of Chief Operating Officers would prefer a different job title to better reflect their expanding remit. Many COOs reported that their role had grown beyond “back-office” operations into strategic change and innovation, and thus titles like “Chief Transformation Officer” or “Chief Change Officer” might be more fitting. In fact, 24% of COOs surveyed said they would choose to be called ‘Chief Change Officer’ if possible. This sentiment is telling – modern COOs are not just overseeing day-to-day operations; they are driving major initiatives, technology adoption, and organizational change. The traditional COO title (often seen as second fiddle to the CEO) may undersell these contributions. Some companies have responded by giving COOs additional titles (e.g., COO & Head of Strategy). The survey highlights an identity shift: today’s COOs see themselves as agents of change and growth, not merely operations managers.
17. COOs Pivot to Growth: 52% Now Drive New Products/Services
The COO role is no longer confined to cost and efficiency – it’s about growth and innovation. According to the BNP Paribas Securities Services “COO Survey,” 52% of COOs say that driving growth via new products and services is now an essential part of their job. In the same survey, COOs acknowledged that while risk management and efficiency remain important, the role has expanded to include delivering transformational change projects and revenue initiatives. This reflects how businesses have evolved: operations leaders are increasingly expected to be growth catalysts, partnering with R&D, product development, and sales to launch new offerings. The COO, once focused on “keeping the lights on,” is now often tasked with implementing strategic innovations. For example, a COO might oversee the rollout of a new digital product line or spearhead entry into a new market operationally. The statistic shows a majority recognizing this shift to a broader mandate. In practice, many COOs collaborate closely with Chief Marketing Officers or Chief Innovation Officers as they take on a customer-facing, growth-oriented mindset in addition to running efficient operations.
18. APAC COOs Prioritize Transformation – 56% vs 26% in North America
COOs in Asia-Pacific are the most transformation-focused in the world. A regional breakdown of the global COO survey (2020) showed that 56% of COOs in Asia-Pacific ranked delivering transformation as their top priority, compared to only 26% in North America. European COOs were between these extremes. This indicates that APAC operations leaders are particularly oriented toward driving major changes – whether it’s digitalization, process overhauls, or new business models – perhaps because many Asian markets are rapidly developing or because companies there face fast-changing competitive landscapes. By contrast, North American COOs had relatively lower emphasis on transformation, possibly focusing more on stability or incremental improvements. The data suggests cultural and market differences: in Asia-Pacific, COOs often act as change agents spearheading modernization, while in the US and Canada, some COOs may defer transformation initiatives to other C-suite roles. Nonetheless, across the globe, the trend is upward, even though 26% in NA was growing. It highlights that in dynamic markets, a COO’s success is measured by transformative impact as much as by operational efficiency.
19. 67% of COOs Cite Workforce Upskilling as Key to Transformation
COOs see talent development as crucial for successful transformation. In the BNP Paribas COO survey, 67% of COOs agreed that upskilling the workforce is vital to drive transformation projects and business growth. This was one of the top strategies COOs identified – even more than relying solely on technology. Essentially, two-thirds of operations chiefs believe that investing in employees’ skills (e.g., training staff in new digital tools, process improvement methods, etc.) will enable the organization to achieve its transformation goals. Moreover, 60% of COOs in the survey said that spending more time with clients (to understand needs) would also assist in transformation – indicating a people-centric approach both internally and externally. The upskilling focus aligns with broader trends: as automation and AI change processes, COOs are ensuring their teams can work with these new technologies. PwC’s 2023 Pulse data likewise showed 78% of COOs find upskilling existing talent a challenge. COOs are thus heavily involved in talent strategy, not just technical operations. They recognize that an agile, skilled workforce is a foundation for any major operational change.
20. 61% of Asset Management COOs Want Closer IT Partnership (vs ~38% Overall)
COOs in certain sectors are pushing for deeper collaboration with technology teams. The BNP Paribas survey highlighted that 61% of COOs in asset management firms were seeking closer collaboration with their IT/technology departments, far higher than the 38% average among COOs across all industries. This outlier suggests that in the asset management and financial services realm, operations leaders are especially aware of the need to integrate technology with operations. Asset management COOs often come from tech backgrounds themselves, and they see partnerships with CIOs and CTOs as key to gaining a competitive edge (for example, leveraging fintech, automation in trading operations, etc.). By contrast, many COOs in the general industry (38%) also value IT collaboration, but perhaps their focus is split between other areas. The finding implies that industry context matters – where tech and data are critical to operations (like in finance), COOs are much more tech-driven. In fact, asset management COOs were most likely to hail from IT roles originally, whereas COOs in broader financial services tend to come from finance backgrounds. Overall, the trend is that modern COOs, especially in info-intensive industries, prioritize a tight alignment between operations and IT to drive efficiency and innovation.
Related: Can Artificial Intelligence Replace COOs?
21. 86% of COOs Increasing Tech Investments in Operations
Virtually all COOs are betting on technology to improve performance. A PwC Pulse Survey of COOs in August 2023 found 86% of Chief Operating Officers are ramping up investments in new technology to enhance their operational functions. This includes spending on automation, advanced analytics, AI, cloud systems, and other digital tools to streamline processes from supply chain to manufacturing to service delivery. COOs view tech modernization as critical for boosting productivity, agility, and cost efficiency. In the same survey, nearly half (49%) of COOs said they’re “very confident” in their ability to reinvent the business through technology – indicating strong optimism that these investments will pay off. Popular areas of focus include supply chain visibility systems, robotics in production, and data analytics platforms for operations. Additionally, 43% of COOs are heavily investing in technologies they already use, and 40% are investing in brand new technologies, per the survey. The overwhelming 86% figure signals that COOs across industries are firmly in a tech-driven transformation mode, allocating budget to digital initiatives as a top priority.
22. 49% of COOs Confident in Tech-Driven Business Reinvention
About half of COOs express strong confidence in transforming their business via technology. According to PwC’s 2023 COO survey, 49% of COOs “strongly agree” that they are confident in their ability to reinvent the business through new technology. Similarly, 48% strongly agreed they have the right leadership in place to drive transformation. These numbers reflect a cohort of operations leaders who are bullish on digital transformation efforts. They believe that by leveraging emerging tech (such as automation, AI, and advanced manufacturing tools), they can fundamentally improve or even reinvent their companies’ operating models. That said, the survey also hinted at some short-term anxiety: fewer COOs (only ~38%) were as confident about executing plans in the next 18 months, indicating concerns about immediate challenges. Nonetheless, the medium-term outlook is upbeat. Roughly half of COOs feel they have set the stage for success with tech – the task ahead is execution. This confidence aligns with COOs taking a bigger strategic role. No longer confined to maintenance mode, they are increasingly the champions of innovation and reinvention within their organizations.
23. 42% of COOs Report Frontline Labor Shortages as a Major Challenge
Labor shortages on the front lines are keeping COOs up at night. In mid-2023, 42% of COOs said that shortages of frontline workers were posing a significant challenge to their business. Frontline workers include roles like manufacturing operators, warehouse staff, service employees – the people who execute day-to-day operations. This concern outranked shortages of knowledge workers (which only 23% of COOs saw as a serious issue). Industries from hospitality to healthcare to logistics have experienced difficulties in hiring and retaining enough frontline personnel, especially after the pandemic. For COOs, understaffed production lines or retail stores directly impact the ability to meet customer demand and efficiency targets. Additionally, 35% of COOs noted that an aging frontline workforce is a significant challenge, meaning many experienced workers are retiring. To tackle these shortages, COOs are adopting measures such as higher automation (to reduce dependency on labor), improving wages and working conditions, and recruiting from non-traditional labor pools. The 42% figure highlights that workforce constraints are as much an operational risk as supply chain issues. As the ones responsible for output, COOs are focusing on talent strategies to ensure they have enough hands on deck to keep things running.
24. 78% of COOs Find Upskilling Talent a Significant Challenge
A vast majority of COOs struggle with the skills gap in their workforce. PwC’s 2023 survey data reveals that 78% of COOs feel that upskilling their existing employees is a somewhat or very significant challenge. In fact, only 40% of COOs strongly agree that their company currently has the talent needed to transform the business model – implying that 60% see capability gaps. These statistics underscore how critical and difficult workforce development has become. Operations are rapidly digitizing, and COOs need their teams to learn new tools (data analytics, AI, advanced machinery) and new ways of working (agile, cross-functional collaboration). However, implementing effective training at scale and keeping employee skillsets evolving is easier said than done. Many COOs cite constraints such as limited training resources, resistance to change, or high turnover, undermining skill retention. Additionally, 60% of COOs view talent acquisition as a moderate or serious risk, meaning hiring new skilled workers is also tough. This places even more emphasis on upskilling the current workforce. The 78% figure highlights that COOs are keenly aware that without continual learning and development, their operational teams may fall behind, jeopardizing transformation initiatives.
25. 71% of COOs Plan to Deploy Generative AI in Next 18 Months
COOs are eagerly embracing generative AI to revolutionize operations. A mid-2023 PwC pulse poll found that 71% of Chief Operating Officers agree (or strongly agree) that they will use generative AI to support new business models in the next 12 to 18 months. This indicates widespread intent among operations leaders to pilot or implement AI tools like large language models, AI assistants, and advanced machine learning in their processes. COOs see GenAI’s potential in areas such as predictive maintenance, supply chain optimization, customer service chatbots, and automating routine administrative tasks. Many companies are already experimenting – the survey also noted that 38% of COOs have trained employees on new technologies, including AI, to prepare the ground. The high 71% intention suggests that COOs view AI not as hype but as a practical lever to increase efficiency and create value. They are likely working closely with CTOs/CIOs and data science teams to integrate these AI solutions safely and effectively. The coming 1–2 years could see a surge of AI-driven operational innovation, with COOs at the helm. However, this also means COOs must manage the risks and change management associated with AI adoption – ensuring quality, ethics, and employee acceptance as they deploy these cutting-edge AI tools.
Related: Roles & Responsibilities of Chief Operating Officer
26. 38% of COOs Have Trained Staff in AI & New Tech (Another 35% Planning To)
A significant share of COOs are already upskilling their teams in new technologies. As of August 2023, 38% of operations leaders said they have trained their existing employees on new technologies, including artificial intelligence (AI) and generative AI. An additional 35% of COOs have a plan in place to do so, even if they haven’t started yet. This means in total, around three-quarters of COOs are addressing tech training – either actively or in the pipeline. These training initiatives range from workshops on data analytics tools for operations managers to frontline worker training on advanced machinery or AI-driven software. It reflects an understanding that adopting new tech is not just about buying systems – employees need to know how to use and leverage them. COOs are taking concrete steps: for instance, scheduling regular training sessions, partnering with HR on digital academies, or implementing on-the-job learning through pilot programs. This investment in human capital ensures that as COOs introduce cutting-edge tools, their workforce can keep pace. It’s a proactive response to the rapid technological changes in operations.
27. 60% of COOs See Hiring Talent as a Serious Risk Factor
The ability to acquire new talent is a major concern for today’s COOs. Around 60% of COOs cited talent acquisition as a moderate or significant risk to their company’s outlook in PwC’s pulse survey. In other words, six in ten operations leaders worry that not being able to hire the right people could impede their business plans. This risk perception likely stems from tight labor markets in many industries and the specialized skill requirements of modern operations. COOs are seeking workers versed in areas like robotics maintenance, data science, supply chain analytics, and other new-age skills – and such talent is in high demand and short supply. Additionally, with unemployment low in some regions, even recruiting for traditional operations roles (plant managers, project managers, etc.) has become competitive. The 60% figure parallels other executive surveys where talent attraction/retention ranks high among risks. For COOs, who must scale teams for growth or transformation, an inability to staff up can delay or derail strategic initiatives. This is pushing COOs to work on improving employer branding, compensation, and even considering automation to reduce labor needs.
28. Median US COO Salary Nears $490,000 in 2024
COO compensation is very high and still rising, reflecting demand for skilled operators. Recent salary surveys project that the median annual salary for a Chief Operating Officer in the United States is approaching $490,000 by 2024. This is the total cash salary and represents a significant increase over previous years. (By comparison, some data showed the median COO base salary was around $273,000 in 2023, indicating a sharp jump alongside bonuses and other cash incentives.) The source SalaryCube notes that this strong compensation outlook “suggests demand for experienced COOs remains strong”. Indeed, companies are willing to pay top dollar for proven operations leaders who can drive efficiency and navigate crises. The median of ~$490K means half of COOs earn more than that – especially in larger corporations. It’s also worth noting that beyond base pay, many COOs receive lucrative bonuses, stock awards, and other incentives that significantly increase their total earnings. The upward trend in COO pay mirrors what’s happening with CEOs and CFOs, and underscores that the COO is seen as critical to company success, especially in complex global businesses.
29. Big-Company COOs Often Earn $500K–$1M+ in Total Compensation
Total compensation packages for COOs at large firms frequently reach seven figures. According to executive pay benchmarks, a Chief Operating Officer’s total cash compensation (including base salary and bonuses) typically ranges from around $485,000 up to $1,000,000 or more at sizeable companies. Salary data aggregators report that base salaries for COOs can go as high as the mid-six-figures, and when you add performance-based bonuses, profit sharing, and other incentives, many COOs cross the $1 million mark annually. Equity (stock options or grants) is another key component: COOs of public companies often receive stock awards, aligning their rewards with company success. These equity grants can sometimes far exceed the cash portion, especially if the company performs well. For example, a COO might have a $600K salary, a 50% annual bonus, and stock options potentially worth several million over time. The broad range in pay ($500K to $1M+) also reflects differences in company size and industry – COOs at Fortune 100 giants tend to be at the upper end or above it, while a mid-market company COO might be toward the lower end. The takeaway is that the COO role is one of the best-compensated positions in management, second only to the CEO in many organizations.
30. Scope 3 is the Bulk of Emissions (Avg. 75%); Yet Only 52% of Disclosers Report All Scopes 1–3
Most decarbonization levers sit in operations and supply chains that the COO controls. Sphera’s 2024 global Scope 3 survey finds value-chain (Scope 3) emissions average 75% of a company’s footprint (and 90–95% in some sectors). Disclosure still lags: 43% of companies disclose GHG emissions; among those, only 52% report across Scopes 1–3. Even among large enterprises, many rely on spend-based estimates rather than supplier-specific life-cycle data, blunting actionability. For US, UK, and EU COOs, the implication is clear: achieving targets and complying with tightening rules will depend on supply-base data quality and redesign choices—materials switches, logistics modes, network design, and product carbon footprints embedded into S&OP and sourcing gates. Prioritize supplier PCFs in heavy-emitting categories and codify decarbonization in operational tollgates to move from reporting to engineered abatement.
Related: How Can COO Become a CEO of Company?
31. Factory Automation at Record Scale: 4.28M Robots in Service (+10% YoY); Robot Density Hits 162 Per 10k Workers; 70% of 2023 Installs Were in Asia
Automation’s center of gravity is shifting fast—and COOs must pace it. The International Federation of Robotics (IFR) reports 4.28 million industrial robots operating in factories worldwide (+10%), with annual installs >500,000 for the third straight year. Global robot density reached a record 162 per 10,000 employees in 2023—more than double 2017 levels—while Asia took 70% of new 2023 installations (Europe 17%, Americas 10%). For COOs in the US, UK, and continental Europe, this means automation roadmaps, retooling cycles, and workforce upskilling (robotics techs, AI-enabled quality, maintenance analytics) are now core to cost, capacity, and resilience. Without a step up in deployment and skills, unit economics and lead times will diverge from Asian competitors.
32. Startup COOs: ~$122K Salary Plus 1–5% Equity Stakes
In startups, COOs earn lower cash salaries but often receive significant equity. Data on startup compensation shows that the average COO salary at a startup is around $122,000 in the US.. This is notably less cash than that of COOs at large corporations, reflecting the resource constraints of younger companies. However, what startups lack in big salaries they often make up for in stock ownership: non-founder COOs typically get between 1% and 5% equity in the business as part of their package. That equity can become extremely valuable if the startup grows and either gets acquired or goes public. For instance, a 2% stake in a startup that becomes a $500 million company is worth $10 million. Founders Network reported that in UK seed-stage startups, COOs averaged around £94.5k (≈$128k) and at more mature Series B startups about £135k salary, aligning with these figures. The equity range might vary by stage: earlier-stage COOs often get a higher percentage (to offset risk and lower pay), whereas later-stage COOs might be closer to 1%. Additionally, startup COOs sometimes have titles like “VP of Operations” and wear multiple hats, but their compensation structure follows the same idea – cash lean, equity heavy. This model attracts entrepreneurial operations leaders who are willing to bet on the company’s future value and take an active ownership mindset in growing the business.
33. COO Pay Gap by Region: UK ~£120K vs India ~₹2.5M (≈$33K)
COO salaries vary widely across global markets, reflecting local economies. In the United Kingdom, a Chief Operating Officer earns an average base salary of roughly £120,000 per year, which is about $150,000 USD. Meanwhile, in a major emerging market like India, the average COO base salary is around ₹2,500,000 (2.5 million rupees) annually. At current exchange rates, that’s only about $30–35,000 USD per year – a fraction of US or European levels. These figures (sourced from Indeed and PayScale reports in 2023) underscore the impact of cost of living and market pay norms. UK COOs command high pay comparable to their US counterparts due to the mature economy and high corporate revenues there. In India, salaries are growing but still lower on a dollar basis, in line with lower living costs and different salary structures. For further perspective, in other regions, Luxembourg’s average COO pay is about €234,000 (over $250k) – one of the highest globally, while Hong Kong COOs average HK$1.65M (~$210k). These examples illustrate that a COO of a multinational in London or Luxembourg will earn far more than a COO of a domestic company in New Delhi. Companies adjust compensation to local market standards. However, senior executive pay in places like India has been rising rapidly in recent years as those economies expand. Regional pay disparities are narrowing somewhat in percentage terms, but as of now, COOs in Western economies still take home the largest paychecks overall.
34. CFOs Outearn COOs: $145K vs $133K vs CEOs $129K (Avg Base, USA)
Among the top three C-suite roles, CFOs have a slightly higher average base salary than COOs or even CEOs – at least in mid-sized firms. According to an analysis by Indeed (2023), the average base salary for a Chief Financial Officer in the US is about $145,000 per year, while the average for a Chief Operating Officer is around $132,500, and for a Chief Executive Officer, about $128,700. This ordering (CFO > COO > CEO) might surprise, but it often holds true in small-to-medium enterprises where a founder-CEO may take a modest salary initially, and the hired professional executives (COO, CFO) command market-rate pay. CFO roles can be particularly well-compensated because they require specialized financial expertise and bear heavy fiduciary responsibility. It’s worth noting that at the largest corporations, CEOs typically outearn everyone by far due to stock grants – but at “average” company scale, base salaries alone paint a different picture. Another factor: there’s a broader talent market setting pay for CFOs and COOs, whereas a CEO’s pay may include non-salary elements or be influenced by ownership (for example, founders often pay themselves less in salary).
35. US Manufacturing Needs 3.8M Hires by 2033; 1.9M Could Go Unfilled; 65% Say Talent is the #1 Challenge
Even as industrial investment accelerates, staffing remains a binding constraint. Deloitte and The Manufacturing Institute (MI) estimate 3.8 million net manufacturing hires will be needed in the US (2024–2033), and 1.9 million roles could remain unfilled if the skills/applicant gaps persist. In their 2024 study, 65% of manufacturers cited talent attraction/retention as the primary challenge, with sharp growth in demand for digital skills (automation, simulation, data). For COOs leading US operations—and for European peers facing parallel shortages—the operating agenda now must include scaled apprenticeships, faster cross-skilling in robotics/industrial software, and redesigned frontline roles that integrate tech and safety. Otherwise, capacity additions will under-deliver, and cycle times and quality will suffer, according to Deloitte & The Manufacturing Institute.
36. Only 16% of Fortune 500 COOs Were Hired from outside the Industry
Sector-specific experience is highly valued when choosing a COO. Spencer Stuart’s analysis reveals that a mere 16% of Fortune 500 COOs were external hires brought in from a different industry. In other words, 84% of COOs either grew up in the same industry or were at least hired from a company in a similar sector. COOs, CEOs, and CFOs showed the lowest propensity for cross-industry hiring, highlighting how important industry know-how is for these roles. For a COO, understanding the particular operational challenges, regulatory environment, and competitive dynamics of the industry can be critical. For example, a hospital network would rarely hire a COO straight from, say, a tech company – and vice versa – because the operational context differs drastically (healthcare vs software). Instead, companies seek COOs who are fluent in their industry’s supply chain quirks, customer expectations, and common pitfalls. This stat also pairs with the high internal promotion rate: many COOs not only come from the same industry but even the same company. By limiting to known industry talent, firms aim to reduce ramp-up time and execution risk. The message is that if you want to become a COO in, say, manufacturing, it greatly helps to have a career’s worth of manufacturing ops experience. The COO role is often the culmination of deep industry-specific operational expertise.
37. 60% of Top Fintech Startups Have a COO Role
High-growth fintech companies are notably likely to employ COOs early on. A Heidrick & Struggles study examining 100 leading fintech start-ups worldwide found that 60% of these companies had a Chief Operating Officer (or equivalent) on their executive team. This is interesting because fintechs are often relatively young firms (many in rapid growth phases), yet a majority choose to install a COO to help scale operations. In contrast, some tech startups in other domains delay hiring a COO until later. The fintech sector’s regulatory complexity and need for operational excellence (in areas like compliance, customer onboarding, transaction processing, etc.) likely drives the early appointment of COOs. These COOs in fintech often play hybrid roles – part traditional operations, part strategy – to complement the typically product- or technology-focused CEOs. The 60% prevalence also suggests that venture capital investors and boards see value in having an execution-oriented partner to the CEO to build out the company structure, especially as fintech startups interface with banks, handle sensitive financial data, and must scale securely. It’s noted that at whatever stage a fintech identifies a specific scaling issue beyond the founder’s expertise, they bring in a COO. This could be at Series A for some or post-Series C for others. The takeaway is that in fintech (and likely other fast-growing tech segments), the COO role is alive and well – a key hire to enable growth and operational maturity.
38. Fintech COOs: ~21 Years’ Experience, ~3 Years in Current Role
Fintech COOs are seasoned professionals, though relatively new in their positions. The Heidrick & Struggles analysis of global fintech companies revealed that the average fintech COO has about 21 years of work experience in their career, but only about 3 years of tenure in their current COO job. This profile suggests that fintech firms are bringing in veteran operators – people who likely have two decades of experience in banks, tech firms, or other relevant companies – to serve as COO. However, because many of these startups are themselves not that old or because COOs were hired recently to address scaling needs, their time with the present company is relatively short (three years on average). It implies that many fintech COOs joined during the industry’s recent growth surge (fintech boom of late 2010s/early 2020s) and are still in the thick of executing growth strategies. The experience level (21 years) might include backgrounds in areas like operations leadership at big financial institutions or running divisions in established firms, before jumping into fintech. This blend of long experience but short tenure aligns with fintech COOs often being brought in as “adults in the room” to support younger founding teams. It also reflects rapid movement – some might cycle out if the company’s needs change (or if they succeed and the company is acquired). In summary, fintech COOs come with deep experience but are relatively fresh to their companies, highlighting the infusion of seasoned talent into the startup scene.
39. 75% of Fintech COOs Are First-Timers in the COO Role
Most fintech COOs haven’t been COOs before – it’s a first-time role for them. The Heidrick & Struggles research noted a “startlingly low” 25% of fintech COOs had prior experience as a COO at another company. That means 75% had never held the COO title before joining their current fintech firm. This mirrors the broader trend (Fact 8) that many COOs are first-timers, but it is perhaps even more pronounced in the fintech startup space. It suggests fintechs are open to hiring operations leaders based on functional experience (e.g., someone who was a head of operations, or a GM, or a VP at a bank) even if they haven’t formally been “COO” elsewhere. In some cases, these individuals might have been one level below COO at a larger firm or leading a major department. The steep learning curves and innovative nature of fintech might also mean that prior traditional COO experience isn’t a strict requirement – what matters is adaptability, strategic thinking, and relevant domain knowledge. Interestingly, this stat also points out that experience in other areas (sales, strategy, business development) was common among fintech COOs, with many coming from those routes rather than previous COO stints. Essentially, fintech companies often promote or hire promising executives into the COO role for the first time, trusting their skills will transfer.
40. Fintech COOs Are 32% Female (vs 8% Female Fintech CEOs)
Fintech companies have relatively high female representation in the COO role, especially compared to CEOs. The Heidrick & Struggles study found that 32% of fintech COOs were women, which is about one-third of those positions. In contrast, among fintech founders/CEOs in the sample, only around 8% were women. This indicates that while fintech leadership is overall male-dominated, the COO position has attracted a significantly greater proportion of female executives. In fact, that 32% is roughly on par with the share of female COOs in the broader tech industry in the US, suggesting fintech isn’t far off general tech in this regard. A possible reason is that many fintech CEOs are product/technology male founders, and when they hire a COO to complement them, they may seek diverse skill sets – opening the door for women with strong operational backgrounds to join the C-suite. Additionally, there are many prominent female COOs in finance and tech historically, which could be a talent pool feeding fintech. This stat is a bright spot in an otherwise stark gender gap in startups. It shows that women can and do reach high operational leadership roles in fintech, even if the top job (CEO) is less common. As fintech firms mature, some of these women COOs might themselves become CEOs (either of the same company or elsewhere), potentially boosting female CEO counts in the future.
41. Half of Fintech COOs Were Hired from Big Firms, Half from Startups
Fintech companies draw their COO talent equally from large corporations and other startups. Heidrick & Struggles observed that among fintech COOs, approximately 51% came from large, established companies and 49% were hired from other start-ups or smaller firms. This 50/50 split illustrates two main pipelines for COO talent in the fintech space: (1) seasoned executives from big banks or tech giants are brought in to provide experience and credibility, and (2) nimble operators who have startup experience (perhaps from other fintechs or related ventures) jump over to a new venture. Each path has its advantages – big-firm veterans bring process discipline and scaling know-how, while startup veterans understand the agile, resource-constrained environment and may fit the culture easily. However, the mix also implies a potential cultural adjustment: those coming from large corporates must adapt to the startup world’s volatility, and indeed cultural compatibility is cited as a critical factor for success (many big-company transplants struggle with the unstructured startup setting). Conversely, startup-bred COOs must scale their skills up as the company grows. The equal split suggests fintech founders and boards are open-minded and will source a COO from wherever makes sense, given the company’s current challenges. For example, a startup dealing with regulatory hurdles might hire a COO from a major bank (for that expertise), whereas one focusing on hyper-growth scaling might poach a COO from another high-growth startup. The key is that fintech COOs come from diverse backgrounds, and there’s no single feeder – it depends on the needs of the business.
42. 50% of Fortune 500 C-Suite Executives Are Women or Minorities
Corporate leadership teams are gradually becoming more diverse in terms of gender and ethnicity. According to Spencer Stuart’s 2024 Fortune 500 C-Suite Snapshot, 50% of executives in C-suite roles are now women or from historically underrepresented racial/ethnic groups. This combined diversity figure shows significant progress compared to years past – it implies half of the top functional leaders (CEO, COO, CFO, etc., as a group) are not white men. The breakdown wasn’t given by role in that stat, but other data indicates roles like Chief Diversity Officer, Chief HR Officer, etc., have high female and minority representation, which boosts the overall average. For COOs specifically, diversity has lagged (as noted, only ~13–17% of new COOs are women globally, and presumably minority representation is similarly low). Nonetheless, that 50% across the C-suite suggests the talent pool at the top is broadening. Many Fortune 500 companies have made public commitments to diversity and have recruited or promoted more women and people of color into executive positions. We’ve seen milestones like the first Black female COO of a Fortune 500 recently, and rising numbers of minority CFOs and CIOs. The presence of diverse voices in executive teams can improve decision-making and better reflect customer and employee demographics. While the COO role itself still needs catching up, the broader context shows that the C-suite as a whole in 2024 is much more diverse than it was a decade ago, when the figure would have been significantly lower.
43. Many Small Businesses Operate Without a COO Role
In smaller companies and startups, a separate COO is often considered optional or is merged into other roles. It’s common in SMEs (small and medium enterprises) and early-stage startups to have no dedicated Chief Operating Officer, with operational duties handled directly by the CEO or another executive. For instance, in many young companies, the founder/CEO manages both strategy and day-to-day operations, effectively acting as their own COO. An example noted in a 2022 McKinsey study: the Hungarian SME sector often sees owners or managing directors doubling as operations manager, rather than hiring a formal COO. The rationale is usually cost and size – below a certain company size (say <100 employees), a COO might be unnecessary bureaucracy. Instead, companies might distribute operations tasks among a VP of Operations, a General Manager, or have the CFO or CTO take on operational coordination. On the flip side, once a business grows and the CEO can’t feasibly oversee everything, they often introduce a COO role to scale execution. Interim management firms note that a COO is typically brought in when the CEO becomes overloaded with day-to-day issues at the expense of strategy. If an SME can’t afford a full-time COO, they might even use a part-time or interim COO to stabilize operations. So, while Fortune 500s roughly split 47% with vs 53% without COOs, in the broader universe of small businesses, the percentage without a COO is far higher. It underscores that the COO role is largely a function of scale and complexity – the smaller the organization, the less likely a formal COO is to exist.
44. Major Firms Sometimes Abolish the COO (e.g., CFO/COO Combined)
Some high-profile companies have eliminated the standalone COO role, consolidating duties elsewhere. In certain cases, firms opt to merge the COO role with another position or distribute its functions rather than have a separate COO. A notable example is PayPal, which in 2023 decided to combine its Chief Operating Officer and Chief Financial Officer roles into one executive position. This move meant the responsibilities traditionally held by the COO were absorbed by the CFO (along with finance duties). PayPal isn’t alone – over the years, companies like IBM, Tesla, and others have at times gone without a COO or dropped the title during reorganizations. The reasons vary: a CEO might feel a COO layer is redundant, or a strong CFO/other executive can take on operations oversight. Sometimes it’s driven by specific leaders – if a highly trusted COO leaves, a CEO might choose not to refill the role and instead directly oversee operations or delegate to a few senior VPs. Eliminating the COO can also be part of cost-cutting or flattening management layers. However, these decisions can be controversial, as a lack of clear operational leadership could cause execution issues. In PayPal’s case, they believed combining the COO and CFO would streamline decision-making. Industry analysts caution that when COOs are cut, companies must ensure accountability for operations is clearly reassigned; otherwise, performance can slip. This trend reflects that the COO role is not always considered indispensable – its necessity can depend on the company’s context and the CEO’s management style.
45. Internal Succession Dominates: 78% of New CEOs Hired Internally (Often COOs)
Companies heavily favor internal candidates (often COOs) when appointing a new CEO. In 2023, 78% of departing CEOs in Fortune 500/S&P 500 companies were replaced by internal candidates from within the organization. This statistic from Crist Kolder’s report highlights that boards overwhelmingly choose someone already at the company – frequently the COO, president, or another key executive – to take the helm when the CEO leaves. It ties back to the COO-to-CEO pipeline (Fact 14), showing that planning and grooming internal successors is the norm in large enterprises. Promoting from within has advantages: the new CEO knows the business culture and strategy, providing continuity that external hires lack. And indeed, many of those successors have been serving as second-in-command (COO or equivalent). The high 78% internal rate in 2023 was actually one of the highest on record, indicating a strong focus on succession planning in recent years. It’s also worth noting that CFOs and other roles sometimes succeed CEOs, but COOs historically have been the top source. Companies that don’t have a COO might use the “President” title for the heir apparent. Overall, this trend reinforces the value of the COO role as a proving ground – if you’re an internal COO or similar, you stand a very good chance of being the next CEO when the opportunity arises.
46. Top Executive Jobs Projected to Grow 4% by 2034 (US)
The demand for top executives, including COOs, will keep growing steadily over the next decade. The US Bureau of Labor Statistics projects that employment of top executives will increase by about 4% from 2024 to 2034. This “as fast as average” growth rate means opportunities at the executive level should expand roughly in line with overall job market growth. While 4% may not sound high, in absolute terms, it’s significant – BLS expects around 331,000 openings for top executives each year on average (including replacements as current executives retire or leave). For COO roles specifically, the outlook is tied to organizational needs: as companies form and expand, many will eventually seek a COO to manage operations. Certain industries might grow executive ranks faster (e.g., tech and healthcare are expanding, thus creating more C-suite roles), whereas some might contract. The 4% projection assumes stable economic growth; if the economy booms, exec demand could be higher. Additionally, globalization and the complexity of operations could spur more companies to add COO roles to handle intricate supply chains and digital transformation. The steady outlook also implies that the competition for these roles will remain intense, as the number of qualified professionals grows as well. In essence, for aspiring COOs or other C-suite executives, the next decade will offer new positions but not a dramatic surge – it’s slow and steady growth, requiring continuous skill development to seize those top spots.
47. COOs Devote Only ~1/3 of Their Time to Strategic Planning
One of the COOs’ biggest challenges is balancing long-term strategy with urgent operational issues. A McKinsey interview-based study in 2022 found that on average, COOs spent only about one-third of their time on long-term strategic planning, with the rest consumed by overseeing people and handling current operational fires. Many COOs reported struggling to allocate more time to forward-looking work because day-to-day issues demand so much attention. They often get pulled into immediate priorities – managing supply chain disruptions, meeting with department heads to solve problems, or addressing customer and workforce needs – leaving limited bandwidth for strategic initiatives. Ideally, a COO would like to plan 1-3 years (network expansion, new systems implementation, etc.), but urgent matters tend to crowd out the calendar. This time split highlights why some organizations add roles like a Chief Strategy Officer or deputize others to handle routine tasks, freeing the COO to think big-picture. The one-third strategic vs two-thirds tactical ratio suggests COOs must be master prioritizers. Post-pandemic, some COOs have gained breathing room as operations stabilize, but new disruptions (geopolitical, supply issues) always loom. The best COOs deliberately schedule time for strategy, such as off-site planning sessions or delegating daily tasks for a day each week. McKinsey’s advice to COOs included learning to say no to certain meetings and empowering direct reports more.
48. COOs Increasingly Seen as Key to Organizational Resilience
The COO has emerged as a pivotal leader for building resilience and agility in companies. In recent years, especially after the lessons of the COVID-19 pandemic and supply chain crises, boards and CEOs have come to view the COO as crucial for navigating disruptions and ensuring business continuity. McKinsey notes that as CEOs focus externally, COOs act as the internal “counterweight,” bolstering operational resilience by fortifying supply chains, implementing agile processes, and empowering employees. A PwC report in 2025 likewise emphasizes COOs seizing growth opportunities from lessons learned, making operations more flexible and robust against shocks. We saw during the pandemic that companies with strong COOs could pivot faster to remote work setups, adjust production, or re-route logistics. Now, COOs are often sponsors of enterprise risk management and crisis response planning. They work closely with risk officers and technology officers to embed resilience – for example, building redundancy in suppliers, adopting automation to handle labor fluctuations, and cross-training employees. The COO’s operational command puts them in charge of “hardening” the organization without sacrificing adaptability. As disruptions (from pandemics to cyber-attacks) become more frequent, COOs are the ones orchestrating the response and future-proofing operations. Their influence in strategic planning has grown accordingly, with many COOs driving scenario planning and “what-if” simulations for their companies. In essence, modern COOs are guardians of resilience, ensuring the company can withstand and quickly rebound from adversity.
49. COO Role Often Overlaps with Other Executives, Requiring Clear Definition
One challenge with the COO position is its fuzzy boundaries, which can lead to role overlap and conflict. Studies and expert observations (e.g., Harvard Business Review) have long pointed out that the COO’s responsibilities frequently overlap with those of the CEO or other C-suite roles, sometimes making it unclear “who does what”. For instance, a COO might handle some strategic initiatives that could also fall under a CEO’s purview, or might oversee areas like IT or HR, which have their own chiefs. Without a clear definition, a COO could step on toes. A 2022 McKinsey report described the COO role as “crucial yet contradictory” – indispensable for driving execution, yet companies often struggle to delineate its scope. This overlap is one reason 53% of Fortune 500 companies opt not to have a COO (Fact 11); instead, they split the duties among others to avoid confusion. When a COO is in place, success requires a strong partnership and trust between the COO and CEO. The CEO must delegate authority to the COO, but also stay aligned to prevent mixed messages. Likewise, the division of labor between a COO and, say, a CFO or a division president must be negotiated (e.g., does the COO directly manage business unit heads or do they merely coordinate?). Companies that succeed with the COO model often give the COO specific focus areas – e.g., internal operations vs. external affairs for the CEO – and communicate this company-wide. As operations grow more complex, some overlap is inevitable, but smart organizations mitigate it by clearly defining the COO’s charter and ensuring complementarity with other leaders rather than competition.
50. Data & Tech Savvy Become Essential Skills for COOs
The skillset required of COOs has shifted toward technology and analytical expertise. Modern Chief Operating Officers are expected not just to have general management acumen, but to be fluent in data analytics, digital tools, and even emerging technologies like AI. According to an Operations Council study in late 2024, digitalization has fundamentally transformed the knowledge base for operational leaders – capabilities in data analysis, understanding technological trends, and agile methodologies are now indispensable. In fact, familiarity with generative AI and other advanced tech is rapidly becoming part of the job description for COOs. This reflects the reality that operations today are deeply intertwined with technology: whether it’s automating workflows, implementing ERP systems, or leveraging big data for decision-making. COOs need to interpret data dashboards, identify process bottlenecks through analytics, and champion tech-driven improvements. Additionally, as operations span global digital supply chains and remote workforces, COOs must be comfortable with tools for virtual collaboration and cybersecurity basics.
Conclusion
The COO role is no longer a behind-the-scenes function—it is now a pivotal engine of strategy, transformation, and resilience. From compensation trends to emerging responsibilities in AI, sustainability, and workforce development, the data shows COOs shaping the competitive edge of global enterprises. For current and aspiring leaders, mastering the COO mandate requires both operational excellence and strategic foresight. To help you prepare for this evolving role, we’ve also curated a selection of the best COO courses designed to build cutting-edge skills in operations, leadership, and transformation. Explore our recommended learning paths and take the next step toward becoming an impactful operations leader.
