Wednesday, September 11, 2013

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[IWS] Challenger: 113 CEO CHANGES IN AUGUST INCLUDING MICROSOFT, US STEEL [11 September 2013]

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 11 September 2013

CEO Turnover Remains High As Summer Closes

113 CEO CHANGES IN AUGUST INCLUDING MICROSOFT, US STEEL
http://www.challengergray.com/press/press.aspx

 

CHICAGO, September 11, 2013 Turnover among the nation’s chief executive officers remained elevated in August as 113 planned CEO departures were reported, including notable retirement announcements from Steve Ballmer at Microsoft and John Surma at U.S. Steel Corp.

While the 113 departures recorded in August is above the year-to-date average (105), the monthly total was 11.7 percent lower than July, when CEO changes reached a three-year high of 128,  according to the latest report on CEO turnover released Wednesday by global outplacement consultancy Challenger, Gray & Christmas, Inc.

The August total was up 8.7 percent from the 104 CEO exits recorded in August of last year.  This marks the fifth month this year that CEO changes were higher than the corresponding period from a year ago.

Challenger has now tracked 842 CEO changes so far this year, 5.8 percent more than the 796 recorded in the first eight months of 2012.

Last month saw a major announcements from tech-giant Microsoft, whose CEO Steve Ballmer announced he would leave amid falling sales and charges that the company is slow to adapt to mobile markets and tablet PCs. Investors reacted positively to the news, as it increased share prices.  Meanwhile, Chicago start-up-turned-public-offering Groupon announced that Eric Leftkofsky would continue at the helm after taking over as interim CEO for Andrew Mason in February. Co-CEO Ted Leonsis will remain Chairman.

“Neither Microsoft nor Groupon had a firm succession plan for replacing Ballmer and Mason.  This is not uncommon, but it could prove costly in the long run, as companies must first struggle to fill the void in leadership and then traverse a volatile period of adjustment that typically occurs following such a significant change,” said John Challenger, chief executive officer of Challenger, Gray & Christmas. 

“Microsoft has an opportunity to go outside to find a replacement for Ballmer, which could give the company the shake-up it needs.  However, as was demonstrated with Groupon, the best approach may be to stick with talent who already know the ropes.  It will be interesting to see how these companies fair going forward.”

Microsoft and Groupon were among the 11 computer firms announcing CEO changes last month.  These firms have announced 88 departures for the year, 8.6 percent more than the 81 computer sector CEOs who left their posts through August last year. 

Meanwhile, the government/non-profit sector led all industries in August with 24 announced changes, bringing the year-to-date total to 122, 12 percent more than the 109 through August 2012.  Health care followed with 18 August departures. Financial firms also announced 11 chief executive changes in August, bringing the sector’s year-to-date total to 103, a 45 percent increase from the 71 financial CEO changes tracked through August of 2012.

Resignation was the most oft-cited reason for departure in August, with 37 CEOs resigning.  This  brings the year-to-date total for resignations to 239.  Another 23 CEOs retired last month. Three CEOs were ousted by their boards in August, while 3 others left amid scandal.

 

# # #


CHIEF EXECUTIVE DEPARTURES

 

 

 

 

 

 

 

 

 

 

2013

2012

2011

2010

2009

2008

2007

January

113

123

96

89

113

134

114

February

110

104

92

132

82

114

127

March

86

94

99

119

114

123

103

April

94

90

103

101

78

112

126

May

104

99

103

125

115

115

144

June

94

99

113

107

105

126

105

July

128

83

104

88

126

124

88

August

113

104

104

95

101

144

124

September

 

95

108

111

105

140

112

October

 

108

91

81

89

125

96

November

 

112

82

79

94

104

132

December

 

103

83

107

105

123

85

TOTAL

842

1,214

1,178

1,234

1,227

1,484

1,356

Challenger, Gray & Christmas, Inc.©

 

 

 

 

 

CHIEF EXECUTIVE DEPARTURES

Public vs. Private

 

13-August

2013 YTD

2012 YTD

Private

85

669

477

Public

28

173

132

 

 

 

Copyright 2013 Challenger, Gray & Christmas, Inc.


 

CEO DEPARTURES

By Industry

 

 

12-Aug

13-Jul

13-Aug

12-YTD

13-YTD

Aerospace/Defense

1

 

1

9

8

Apparel

 

1

1

1

5

Automotive

7

1

 

13

9

Chemical

2

 

 

6

2

Commodities

 

3

1

2

4

Computer

11

15

11

81

88

Construction

1

1

 

11

7

Consumer Products

1

2

1

19

15

Electronics

4

 

2

20

14

Energy

5

2

6

36

31

Entertainment/Leisure

3

5

4

30

33

Financial

14

19

11

71

103

Food

2

1

5

18

29

Government/Non-Profit

15

20

24

109

122

Health Care/Products

21

34

18

161

169

Industrial Goods

3

1

5

20

24

Insurance

 

 

1

17

11

Legal

 

 

 

 

4

Media

2

3

2

22

20

Pharmaceutical

2

6

9

31

32

Real Estate

1

 

4

10

18

Retail

2

2

 

25

23

Services

5

3

3

45

27

Telecommunications

 

5

2

9

19

Transportation

2

2

2

20

17

Utility

 

2

 

10

8

TOTAL

104

128

113

796

842

 

 

Copyright 2013 Challenger, Gray & Christmas, Inc.


CEO DEPARTURES

By Reason

 

13-Aug

Y-T-D

Resigned

37

239

Retired

23

185

Step Down

17

147

New position in another company

17

119

Interim Period Ended

1

57

Acquisition/Merger

1

18

Another position within company

2

17

Ousted

3

17

Contract Dispute/Expiration

1

9

Scandal

3

7

Bankruptcy

 

4

Financial Losses

2

6

Health

3

6

Died

2

5

Legal Trouble

 

2

Family

 

1

Differences with Board

 

1

Leave of Absence

1

1

Liquidation

 

1

 

CEO DEPARTURES

Average Age, Tenure

 

Age

Tenure

 

2013

2012

2013

2012

January

52

61.3

7.9

6.9

February

56.6 

57.9 

 8.3

9.8 

March

54.2

62.1

 6.9

8.3

April

57.4

58

 10.3

8

May

62.2

62.2

 10.1

7.9

June

65.1

57.8

 13.9

8.4

July

57.8 

52.3

 10.1

6.8 

August

59.1

65.7

 8.9

8.9

September

 

60.1

 

8.2

October

 

68.5

 

8.5

November

 

62.4

 

7.3

December

 

66.5

 

  11.9

 

Copyright 2013 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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