IWS Documented News DAILY POSTINGS

IWS Documented News Service
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Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor---------------------- Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau
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Challenger, Gray & Christmas, Inc.

 

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Office: 312-422-5078

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colleenmadden@challengergray.com

 

 

FOR IMMEDIATE RELEASE

 

May CEO Exits Surge 24 Percent

125 CEO CHANGES, MOST SINCE LAST JULY

 

CHICAGO, June 9, 2010 – Turnover among the nation’s top executives jumped 23.7 percent in May, as 125 CEOs announced their departures, up from 101 in April.  It was the highest number of monthly departures since July 2009, when 126 CEOs left their posts. 

 

The May total was 8.6 percent higher than the 115 CEOs who announced their departures in the same month last year.  This marks the fourth consecutive month in which CEO departures increased from a year ago, according to the latest report on chief executive officer turnover released Wednesday by global outplacement and executive coaching firm Challenger, Gray & Christmas, Inc.

 

Overall, the pace of CEO turnover is 12.7 percent ahead of last year, with 566 departures announce to date.  Through May 2009, a total of 506 CEO changes had been recorded.  At the current average of approximately 113 CEO exits per month, 2010 is on track to exceed 1,300 annual departures.

 

Of the 125 CEOs who announced their departures last month, 42 resigned, while 31 cited retirement as the reason for their exit.  Nine found new positions in other companies.  Boards removed four chief executives and economic turmoil was blamed for 3 chief executive changes.

 

“Companies appear to have throttled back significantly on job-cut activity, but this does not mean that the situation is stabilizing at the top of organizations.  We may continue to see heavy CEO turnover throughout the summer, as companies continue to shift into growth mode,” said John A. Challenger, chief executive officer of Challenger, Gray & Christmas.

 

The government/non-profit sector led all industries last month with 19 CEO departures.  It has now seen 76 CEOs leave their posts this year, making it the second largest CEO turnover sector behind health care. 

 

“The second-ranked sector for CEO turnover is the leading industry when it comes to planned layoffs.  The volatility from top to bottom demonstrates just how much the sector continues to struggle with budget shortfalls, even as other areas of the economy start to see the fruits of recovery,” said Challenger.

 

Meanwhile, the leading sector for CEO turnover – health care – saw 17 of its top executives announce their departures in May, bringing the year-to-date total to 98.  Financial firms have seen 51 CEO departures this year, including 11 in May.  Six CEOs left their posts in the computer sector last month for a year-to-date total of 42.

 

The telecommunication industry, which has just 13 CEO departures this year, saw two notable exits in May.  John Rooney of Chicago-based U.S. Cellular announced his retirement and Robert Dotson of Washington-based T-Mobile USA resigned after 15 years with the company.

 

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This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.

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Stuart Basefsky                   
Director, IWS News Bureau                
Institute for Workplace Studies 
Cornell/ILR School                        
16 E. 34th Street, 4th Floor             
New York, NY 10016                        
                                   
Telephone: (607) 255-2703                
Fax: (607) 255-9641                       
E-mail: smb6@cornell.edu                  
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