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School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies

Cornell University

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Challenger, Gray & Christmas, Inc.

 

Press Release 12 November 2014

CEO Changes Drop Slightly

122 CEO LEAVE THEIR POSTS IN OCTOBER
http://www.challengergray.com/press/press-releases

 

CHICAGO, November 12, 2014 – Turnover among the nation’s chief executive officers remained virtually unchanged in October as 122 planned CEO departures were reported, 1.6 percent fewer than 124 September, according to a report released Wednesday by global outplacement consultancy Challenger, Gray & Christmas, Inc.

The October total was up 17.3 percent from the same month a year ago when 104 were recorded.  This marks the seventh month in which CEO changes outpaced the same month last year. 

Challenger has now tracked 1,131 CEO changes so far this year, 7.4 percent more than the 1,053 departures announced in the first ten months of 2013.

The health care industry continues to lead all sectors with 258 CEO departures in the third quarter, 26 of which occurred in October.  The financial sector announced 20 CEO changes, bringing the year-to-date total to 127. Meanwhile, twenty CEOs left their posts from government/non-profit entities, 169 for the year.

Industry	OCTOBER	Y-T-D
Health Care/Products	26	258
Financial	20	127
Government/Non-Profit	15	169
Media	8	34
Computer	7	102

 

Retailers, while not among the top industries in terms of announced CEO departures, rank 7^th in terms of year-over-year increase in CEO turnover.  The 41 CEO changes in the industry, to date, are up 37 percent from 30 announced departures at this point in 2013.  Retailers have also seem some of the most notable changes, including last month’s announcement that JC Penney will bring in outsider Marvin Ellison to revamp the struggling department store chain.  Ellison comes from Home Depot, where he served as president of North American stores and was credited with a much improved in-store experience that led to stronger financial results.

 

Meanwhile, Lisa Su becomes the latest woman to head up a Silicon Valley tech firm, as she takes the helm of Advanced Micro Devices from Rory Read, who departs amid financial troubles for the semiconductor manufacturer.  Earlier this year, Susan Wojcicki took over as CEO of Mountain View-based YouTube.

 

“Since Marissa Meyer’s ascension to CEO of Yahoo in 2012, there were perhaps higher expectations for more women to break into the executive suite within the tech sector.  Unfortunately, the industry, which has long been criticized for its male dominance, has been slow to meet those expectations.  Of the 137 CEO changes we have tracked within the computer, electronics and telecommunications sectors, only 10 of the outgoing CEOs were replaced by women,” noted John A. Challenger, chief executive officer of Challenger, Gray & Christmas.

 

The heaviest CEO turnover has occurred in California, where 142 exits have been recorded so far this year, including 12 last month.  Texas ranks second with 92, and Pennsylvania has seen 65 CEO exits to date.

 

Retirement was the most oft-cited reason for departure in October, with 38 CEOs, bringing retirement to 282.  Another 29 CEOs resigned, while 24 stepped down into another chief-level or board position last month. Eleven CEOs found new positions in other companies, and two were ousted.

 

# # #

 

 

CHIEF EXECUTIVE DEPARTURES
	2014	2013	2012	2011	2010	2009	2008
January	131	113	123	96	89	113	134
February	112	110	104	92	132	82	114
March	123	86	94	99	119	114	123
April	94	94	90	103	101	78	112
May	98	104	99	103	125	115	115
June	103	94	99	113	107	105	126
July	105	128	83	104	88	126	124
August	119	113	104	104	95	101	144
September	124	107	95	108	111	105	140
October	122	104	108	91	81	89	125
November		94	112	82	79	94	104
December		99	103	83	107	105	123
TOTAL	1,131	1,246	1,214	1,178	1,234	1,227	1,484

 

 

Copyright 2014 Challenger, Gray & Christmas, Inc.

 

CEO DEPARTURES

By Industry

 

	13-Oct	14-Sep	14-Oct	Jan-Oct 2014	Jan-Oct 2013
Aerospace/Defense			1	17	9
Apparel		1		8	6
Automotive		2	1	9	9
Chemical	1	2	1	5	5
Commodities	1		1	2	6
Computer	6	13	7	102	106
Construction	2	1	1	13	10
Consumer Products	3	5	2	27	19
Electronics	6	1	1	18	22
Energy	1	2	6	29	37
Entertainment/Leisure	3	6	5	54	39
Financial	15	11	20	127	129
Food		3	2	20	31
Government/Non-Profit	18	19	15	169	151
Health Care/Products	29	27	26	258	224
Industrial Goods	4	2	3	38	32
Insurance	2	4	2	17	14
Legal		1		3	4
Media	2	4	8	34	29
Pharmaceutical	1	4	5	39	35
Real Estate	4	1	1	11	24
Retail	1	2	3	41	30
Services	1	6	4	40	29
Telecommunications	1	2	5	18	23
Transportation	3	3	1	17	20
Utility		2	1	15	10
TOTAL	104	124	122	1,131	1,053

 

 

 

 

Copyright 2014 Challenger, Gray & Christmas, Inc.

CEO DEPARTURES

By State

 

 

CEO DEPARTURES

By State

 

 

Copyright 2014 Challenger, Gray & Christmas, Inc.

 

 

CEO DEPARTURES

By Reason

	14-Oct	Y-T-D
Resigned	29	329
Retired	38	282
Step Down	24	207
New position in another company	11	131
Interim Period Ended	8	65
Ousted	2	30
Acquisition/Merger	3	23
Another position within company	1	15
Health		8
Scandal		8
Financial Losses	1	7
Bankruptcy		6
Died	2	5
Legal Trouble	2	5
Restructuring		3
Contract Dispute/Expiration		3
Cost-Cutting	1	2
Differences with Board		1
Federal Regulation		1

 

CEO DEPARTURES

Average Age, Tenure

	Age		Tenure
	2014	2013	2014	2013
January	64.0	52	14.8	7.9
February	63.9	56.6	10.0	8.3
March	61.7	54.2	11.4	6.9
April	57.5	57.4	9.1	10.3
May	61.1	62.2	8.2	10.1
June	62.4	65.1	8.6	13.9
July	63.8	57.8	8.3	10.1
August	61.7	59.1	9.7	8.9
September	61.2	57.8	8.4	7.9
October	62.5	65	10.1	12.4
November		71.7		11.2
December		60.7		10.0

Copyright 2014 Challenger, Gray & Christmas, Inc.

 

 

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