Wednesday, October 10, 2012

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[IWS] Challenger: CEO Departures decline to 95 in September [10 October 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.

Press Release 10 October 2012
CEO Turnover Hits 95 In September
SLOWEST QUARTER SINCE Q4 2011 WITH 282
http://challengergray.com/press/PressRelease.aspx?PressUid=242

CHICAGO, October 10, 2012 – Turnover among the nation’s chief executive officers declined slightly in September as 95 CEOs announced their departures during the month.  The quarter ending with September saw the fewest CEO exits since the fourth quarter of last year, according to the report released Wednesday by global outplacement firm Challenger, Gray & Christmas, Inc.

September CEO departures were down 8.7 percent from 104 in August.  Last month’s total was 12 percent lower than the corresponding month a year ago, when 108 CEO changes were recorded. 

Overall, the pace of CEO departures has slowed slightly from 2011.  So far this year, 891 CEO departures have been announced, including 282 in the third quarter.  The nine-month total is down 3.3 percent from the 922 CEO changes tracked by this point last year.  The third-quarter total is 2.1 percent lower than the previous quarter and down 12 percent from 316 CEO departures in the third quarter of 2011.  The third quarter total is the lowest since 256 CEO changes were recorded in the final quarter of 2011.

The health care sector experienced the heaviest CEO turnover activity last month with 21 announced departures.  This sector has the most CEO departures for the year with 182, which is up 23 percent from the 148 CEO changes within health care organizations announced by this point last year.

“Health care has always been a top sector for CEO turnover, due in large part to the sheer number of hospitals and health-related services in this country.  However, we are seeing a greater number of leadership changes than in previous years.  Several factors could be contributing to this, including the economic impact on the financial health of hospitals and the inevitable changes necessary through impending legislation,” said John A. Challenger, chief executive officer of Challenger, Gray & Christmas, Inc.

The government and non-profit sector had the second largest number of CEO departures this year with 120 recorded to date, including 11 in September.  Both the financial and the computer sectors had 13 changes in leadership last month, bringing the year-to-date totals for those industries to 83 and 93, respectively.

Resignation is the most-often cited reason for CEO departures, with 263 this year, including 35 in September.  Companies have cited retirement 188 times as their leaders’ reasons for leaving.  Additionally, a total of 148 CEOs have “stepped down” this year, which means they no longer hold the CEO title, but remain with the company in some other capacity; typically as a board member or chairman of the board. Another 106 have found new positions in other companies.

One of the most notable CEO changes last month came from struggling electronics retailer Radioshack Inc. whose head Jim Gooch left amid a $21 million second quarter financial loss.

# # #

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

95

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

891

1,178

1,234

1,227

1,484

1,356

1,478

1,322

Challenger, Gray & Christmas, Inc.©

 

 

 

 

 

CHIEF EXECUTIVE DEPARTURES

Public vs. Private

 

September 2012

2012 YTD

2011 Year-End Total

Private

78

695

882

Public

17

196

296

  

Copyright 2012 Challenger, Gray & Christmas, Inc.


CEO DEPARTURES

By Industry

 

12-Sep

Y-T-D 2012

11-Sep

Y-T-D 2011

Aerospace/Defense

 

9

2

15

Apparel

 

1

2

8

Automotive

1

14

 

18

Chemical

1

7

1

6

Commodities

 

2

1

4

Computer

12

93

11

88

Construction

 

11

2

8

Consumer Products

1

20

2

26

Electronics

3

23

3

36

Energy

5

41

9

45

Entertainment/Leisure

3

33

5

39

Financial

12

83

13

96

Food

1

19

1

11

Government/Non-Profit

11

120

8

116

Health Care/Products

21

182

20

148

Industrial Goods

4

24

1

27

Insurance

1

18

1

15

Legal

 

 

 

3

Media

2

24

3

36

Pharmaceutical

4

35

7

43

Real Estate

1

11

3

16

Retail

5

30

3

24

Services

2

47

2

42

Telecommunications

1

10

2

21

Transportation

2

22

3

14

Utility

2

12

3

17

TOTAL

95

891

108

922

 

 

Copyright 2012 Challenger, Gray & Christmas, Inc.


CEO DEPARTURES

By Reason

 

12-Sep

Y-T-D

Resigned

35

263

Retired

20

188

Step Down

13

148

New position in another company

7

106

Interim Period Ended

8

59

Removed

3

30

Another position within company

3

29

Acquisition/Merger

1

24

Scandal

 

9

Died

1

9

Ousted

 

6

Bankruptcy

 

4

Contract Dispute/Expiration

1

5

Health

1

5

Economic Conditions

 

2

Liquidation

 

1

Family

 

1

Financial Losses

2

2

 

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

60.1

64.7

8.2

 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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