Wednesday, September 12, 2012

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[IWS] Challenger: 104 CEO TURNOVERS in AUGUST: 20% JUMP [12 September 2012]

IWS Documented News Service

_______________________________

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

________________________________________________________________________

 

Challenger, Gray & Christmas, Inc.

 

 

CEO Turnover Jumps 20 Percent In August

AFTER 5-MONTH LULL, CEO CHANGES TOP 100

http://challengergray.com/press/PressRelease.aspx?PressUid=238

 

CHICAGO, September 12, 2012 The number of chief executive officers announcing departures jumped in August to 104, the highest one-month total since February, when 104 CEO changes were also recorded, according to the latest report on CEO turnover released Wednesday by global outplacement consultancy Challenger, Gray & Christmas, Inc.

August turnover was up 20.2 percent from July, when 83 CEOs announced their departures.  Last month’s total was unchanged from the 104 CEO exits announced in August 2011.  Challenger has now tracked 796 CEO changes in 2012, which is 2.5 percent lower than the 814 CEO departures recorded during the same period a year ago. 

For the year, health care continues to see the heaviest turnover.  It leads all other sectors with 161 CEO changes in 2012, including an industry-leading 21 in August.  The government/non-profit sector saw 15 CEO changes last month, including Nancy Brinker of Komen, who left her post amid a string of resignations following the Planned Parenthood rift.


The financial sector saw its heaviest CEO turnover for the year in August, as 14 chief executives vacated their offices, including the announced departure of E-Trade Financial CEO Steven Freiberg, who was removed from his position amid underperforming financials.

“As the economy continues its slow recovery, chief executive officers are under increasing pressure to show financial gains.  Freiberg’s departure is the latest example, but we have seen numerous examples this year across several industries.  Health care giant Wellpoint Inc. pressured CEO Angela Braly to leave due to weak earnings.  At Symantec, former CEO Enrique Salem was replaced with the company’s chairman amid languishing stock prices. There has been a revolving door of CEOs at struggling Internet company Yahoo, which recently named its fifth CEO in as many years, as it seems to be constantly searching for a leader who will make it competitive with rival Google,” said John A. Challenger, chief executive officer of Challenger, Gray & Christmas.

The computer sector is saw 11 CEO changes in August, and has the third highest total of CEO departures for the year with 81. Automotive companies saw the fifth highest total in August with 7, more than in any month previous. Announced CEO changes recorded in August from the auto sector include Fisker, Navistar, American Axle, and Visteon.

Twenty-five CEOs retired from their posts in August, which is the second highest reason cited for CEO departures for the year with 168.  Resignation is the most cited reason with 228, with 23 occurring in August. To date, 135 chief executives, including 21 in August, stepped down, usually staying with the company as a board member or other C-level executive.

 

# # #


 

CHIEF EXECUTIVE DEPARTURES

 

 

 

 

 

 

 

 

 

 

 

 

 

2012

2011

2010

2009

2008

2007

2006

2005

January

123

96

89

113

134

114

139

92

February

104

92

132

82

114

127

112

103

March

94

99

119

114

123

103

87

129

April

90

103

101

78

112

126

115

117

May

99

103

125

115

115

144

148

120

June

99

113

107

105

126

105

127

120

July

83

104

88

126

124

88

118

96

August

104

104

95

101

144

124

114

116

September

 

108

111

105

140

112

152

121

October

 

91

81

89

125

96

122

96

November

 

82

79

94

104

132

113

118

December

 

83

107

105

123

85

131

94

TOTAL

796

1,178

1,234

1,227

1,484

1,356

1,478

1,322

Challenger, Gray & Christmas, Inc.©

 

 

 

 

 

 

 

CHIEF EXECUTIVE DEPARTURES

Public vs. Private

 

August 2012

2012 YTD

2011 Year-End Total

Private

77

617

882

Public

27

179

296

 

 

 

 

Copyright 2012 Challenger, Gray & Christmas, Inc.


 

CEO DEPARTURES

By Industry

 

 

12-Aug

Y-T-D 2012

11-Aug

Y-T-D 2011

Aerospace/Defense

1

9

 

13

Apparel

 

1

 

6

Automotive

7

13

2

18

Chemical

2

6

 

5

Commodities

 

2

 

3

Computer

11

81

13

77

Construction

1

11

1

6

Consumer Products

1

19

2

24

Electronics

4

20

3

33

Energy

5

36

6

36

Entertainment/Leisure

3

30

4

34

Financial

14

71

11

83

Food

2

18

 

10

Government/Non-Profit

15

109

20

108

Health Care/Products

21

161

19

128

Industrial Goods

3

20

3

26

Insurance

 

17

2

14

Legal

 

 

 

3

Media

2

22

3

33

Pharmaceutical

2

31

6

36

Real Estate

1

10

 

13

Retail

2

25

2

21

Services

5

45

4

40

Telecommunications

 

9

1

19

Transportation

2

20

 

11

Utility

 

10

2

14

TOTAL

104

796

104

814

 

 

Copyright 2012 Challenger, Gray & Christmas, Inc.


CEO DEPARTURES

By Reason

 

12-Aug

Y-T-D

Resigned

23

228

Retired

25

168

Step Down

21

135

New position in another company

13

99

Interim Period Ended

4

51

Removed

7

27

Another position within company

3

26

Acquisition/Merger

1

23

Scandal

1

9

Died

1

8

Ousted

 

6

Bankruptcy

 

4

Contract Dispute/Expiration

2

4

Health

2

4

Economic Conditions

 

2

Liquidation

 

1

Family

1

1

 

CEO DEPARTURES

Average Age, Tenure

 

Age

Tenure

 

2012

2011

2012

2011

January

61.3

60.8

6.9

 7.6

February

 57.9 

61.7

 9.8 

 9.6

March

62.1

60

8.3

 7.4

April

58.0

63.2

8.0

 8.1

May

62.2

55.7

7.9

  7.1 

June

57.8

62.4

8.4

 8.1

July

52.3

56

 6.8 

 11.9

August

65.7

59.4

8.9

 7.3

September

 

64.7

 

 5.1

October

 

61.8

 

 9.8

November

 

58.4

 

 7.0

December

 

66.7

 

 7.7

 

Copyright 2012 Challenger, Gray & Christmas, Inc.

 

 

 

 

________________________________________________________________________

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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