Wednesday, November 12, 2014

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[IWS] Challenger: 122 CEOs LEAVE THEIR POSTS IN OCTOBER [12 November 2014]

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

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This service is supported, in part, by donations. Please consider making a donation by following the instructions at http://www.ilr.cornell.edu/iws/news-bureau/support.html

 

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 7th 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

 

EAST

OCTOBER

Y-T-D

Pennsylvania

8

65

New York

8

64

Massachusetts

6

35

Maryland

1

20

New Jersey

2

19

Dist. of Columbia

2

17

Connecticut

1

16

Maine

2

11

Rhode Island

 

5

Delaware

1

4

Vermont

1

3

New Hampshire

 

0

TOTAL

32

259

MIDWEST

OCTOBER

Y-T-D

Illinois

4

38

Minnesota

1

35

Missouri

6

34

Ohio

2

29

Wisconsin

1

21

Kansas

 

19

Michigan

3

16

Indiana

2

15

Iowa

2

15

Nebraska

1

9

TOTAL

22

231

 


CEO DEPARTURES

By State

 

OCTOBER

Y-T-D

California

12

142

Texas

9

92

Washington

3

31

Colorado

3

30

Oregon

1

19

Nevada

 

13

Utah

 

9

New Mexico

3

7

Oklahoma

1

7

Arizona

1

6

Alaska

 

5

South Dakota

1

5

Montana

3

4

Hawaii

 

4

Wyoming

 

3

Idaho

 

2

North Dakota

 

1

TOTAL

37

380

SOUTH

OCTOBER

Y-T-D

Florida

6

57

Tennessee

9

50

Virginia

2

37

N. Carolina

8

34

Kentucky

2

17

Georgia

3

16

S. Carolina

1

12

Arkansas

 

10

Alabama

 

9

Louisiana

 

8

Mississippi

 

8

West Virginia

 

3

TOTAL

31

261

 

 

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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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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