Challenger CEO Turnover Jumps in October 2012

November 8th, 2012
in econ_news, syndication

 

Follow up:

CEO Departures Jumps To Over 100

108 OCTOBER CEO CHANGES MOST SINCE JANUARY

 

CHICAGO, November 7, 2012 – The abrupt resignation announced by Citigroup’s CEO Vikram Pandit was one of 108 departures tracked by Challenger last month. October saw the most CEO departures since 123 were recorded in January of this year, according to the report released Wednesday by global outplacement firm Challenger, Gray & Christmas, Inc.

October CEO turnover was up 13.7 percent from the 95 CEO changes recorded in September.  Last month’s total was 18.7 percent higher than the corresponding month a year ago, when 91 CEO changes were recorded.

Overall, the pace of CEO departures is down slightly from 2011.  So far this year, 999 CEO departures have been announced, 1.3 percent fewer than the 1,013 CEO changes tracked by this point last year.

The government/non-profit sector experienced the heaviest CEO turnover activity last month with 19 announced departures, including an announcement by the Africa-America Institute in New York, whose new CEO Ms. Amini Kajunju, a native of the Democratic Republic of Congo, “is the first African ever to serve at the helm of the oldest nonprofit organization of its kind in the United States,” according to the non-profit’s press release.

The financial sector had the second most departures in October with 17, including Pandit’s resignation from Citigroup at the hands of a board newly headed by Michael O’Neill. Through October, financial institutions have seen 100 CEO changes.  The health care sector, usually recording the highest number of departures each month, had 12 changes in October. For the year, health care has seen the most CEO departures with 194.

Resignation is the most-often cited reason for CEO departures, with 300 this year, including 37 in October.  Companies cited retirement 22 times in October as their leaders’ reasons for leaving.

“Resignations and retirements are the most commonly cited reason for CEO departures.  However, as the Pandit situation demonstrates, the large majority of these exits are, in reality, outright terminations masked as personal choices for the CEOs to step down, resign or retire,” said Challenger.  “Companies and outgoing CEOs tend to throw a veil over the real reasons for departures, as they may impact one or both parties’ reputation, earnings potential, or stature within their respective communities.”

Additionally, 14 CEOs “stepped down” last month, 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 12 found new positions in other companies.

# # #


 

CHIEF EXECUTIVE DEPARTURES

 

 

 

 

 

 

 

 

 

 

 

2012

2011

2010

2009

2008

2007

2006

January

123

96

89

113

134

114

139

February

104

92

132

82

114

127

112

March

94

99

119

114

123

103

87

April

90

103

101

78

112

126

115

May

99

103

125

115

115

144

148

June

99

113

107

105

126

105

127

July

83

104

88

126

124

88

118

August

104

104

95

101

144

124

114

September

95

108

111

105

140

112

152

October

108

91

81

89

125

96

122

November

 

82

79

94

104

132

113

December

 

83

107

105

123

85

131

TOTAL

999

1,178

1,234

1,227

1,484

1,356

1,478

Challenger, Gray & Christmas, Inc.©

 

 

 

 

 

 

CHIEF EXECUTIVE DEPARTURES

Public vs. Private

 

October 2012

2012 YTD

2011 Year-End Total

Private

87

782

882

Public

21

217

296

 

 

 

 

Copyright 2012 Challenger, Gray & Christmas, Inc.


CEO DEPARTURES

By Industry

 

12-Oct

Y-T-D 2012

11-Oct

Y-T-D 2011

Aerospace/Defense

1

10

 

15

Apparel

 

1

1

9

Automotive

2

16

1

19

Chemical

1

8

1

7

Commodities

 

2

 

4

Computer

9

102

13

101

Construction

2

13

2

10

Consumer Products

2

22

1

27

Electronics

3

26

2

38

Energy

4

45

5

50

Entertainment/Leisure

7

40

1

40

Financial

17

100

13

109

Food

1

20

 

11

Government/Non-Profit

19

139

11

127

Health Care/Products

12

194

8

156

Industrial Goods

5

29

3

30

Insurance

4

22

1

16

Legal

1

1

 

3

Media

4

28

4

40

Pharmaceutical

2

37

5

48

Real Estate

2

13

3

19

Retail

4

34

1

25

Services

3

50

7

49

Telecommunications

 

10

3

24

Transportation

3

25

2

16

Utility

 

12

3

20

TOTAL

108

999

91

1,013

 

 

 

Copyright 2012 Challenger, Gray & Christmas, Inc.


CEO DEPARTURES

By Reason

 

12-Oct

Y-T-D

Resigned

37

300

Retired

22

210

Step Down

14

162

New position in another company

12

118

Interim Period Ended

8

67

Removed

2

32

Another position within company

1

30

Acquisition/Merger

3

27

Scandal

1

10

Died

1

10

Ousted

1

7

Bankruptcy

 

4

Contract Dispute/Expiration

2

7

Health

4

9

Economic Conditions

 

2

Liquidation

 

1

Family

 

1

Financial Losses

 

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

68.5

61.8

8.5

9.8

November

 

58.4

 

7.0

December

 

66.7

 

7.7

 

Copyright 2012 Challenger, Gray & Christmas, Inc.

source: Challenger

 

 









Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.















 navigate econintersect.com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2016 Econintersect LLC - all rights reserved