Slight Increase In CEO Turnover in May 2014

June 11th, 2014
in econ_news, syndication

98 CEO CHANGES IN MAY; 558 CEO EXITS THIS YEAR UP 10%

from Challenger Gray and Christmas

The pace of turnover among the nation’s chief executive officers was virtually unchanged in May, as 98 CEOs announced their departures during the month. The May total was up 4.3 percent from the 94 CEO departures recorded in April. It was down 5.8 percent from the 104 CEO changes announced the same month a year ago.

Follow up:

Through the first five months of the year, US-based companies have announced 558 CEO changes, 10.1 percent more than the 507 CEO exits tracked in the first five months of 2013.

Government/non-profit entities, which include universities, foundations, and chambers of commerce, led last month in CEO departures with 21. The NAACP announced a new leader in Cornell William Brooks, and the AARP appointed COO Jo Ann Jenkins.

Health organizations came in second for number of CEO departures with 20. So far this year, 125 health care CEOs have vacated their offices. That is nearly 32 percent more than the number health care organizations announced through May 2013.

TOP 5 INDUSTRIES FOR CEO DEPARTURES – YTD

Industry

2014

2013

Health Care/Products

125

95

Government/Non-Profit

83

57

Computer

67

59

Financial

57

65

Entertainment/Leisure

26

22

California-based organizations saw the heaviest CEO turnover in May with 13 top executives announcing their departures. Texas and New York, meanwhile, announced 8 CEO changes a piece. Pennsylvania-based companies announced 6 exits, while Massachusetts recorded 5.

Retirements were the leading cause for departures in May with 24, while another 22 cited “resignation” as the reason for their exits. Twenty-one CEOs stepped down into other positions in the company, usually as chairman or other chief-level executive. Three CEOs were ousted from their positions.

Perhaps the most notable CEO departure last month was that of former Target CEO Gregg Steinhafel, who stepped down in the wake of the data breach that compromised millions of credit card and debit card accounts of holiday shoppers. Says John A. Challenger, chief executive officer of Challenger, Gray & Christmas.

While the data breach occurred nearly five months before Steinhafel’s departure, his exit was somewhat sudden and, according to reports, left the company without a clear succession plan. Steinhafel had been in the top spot since 2008, guiding the company through the aftermath of the Great Recession. It could be difficult to fill the post, particularly in light of the fact that several other major retailers are in the hunt for new chief executives.

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

 

94

99

113

107

105

126

July

 

128

83

104

88

126

124

August

 

113

104

104

95

101

144

September

 

107

95

108

111

105

140

October

 

104

108

91

81

89

125

November

 

94

112

82

79

94

104

December

 

99

103

83

107

105

123

TOTAL

558

1,246

1,214

1,178

1,234

1,227

1,484


Copyright 2014 Challenger, Gray & Christmas, Inc.

 

CEO DEPARTURES

By Industry

 

13-May

14-Apr

14-May

Jan-May 2014

Jan-May 2013

Aerospace/Defense

1

1

 

9

6

Apparel

1

 

1

3

3

Automotive

2

2

 

4

6

Chemical

1

1

 

2

1

Commodities

 

 

1

1

0

Computer

9

16

11

67

59

Construction

1

 

 

8

5

Consumer Products

4

 

3

10

11

Electronics

2

2

2

11

10

Energy

5

4

2

15

19

Entertainment/Leisure

3

3

6

26

22

Financial

10

9

9

57

65

Food

5

 

2

10

21

Government/Non-Profit

13

12

21

83

57

Health Care/Products

24

19

20

125

95

Industrial Goods

4

8

2

24

14

Insurance

1

 

1

5

8

Legal

1

1

 

1

3

Media

3

2

3

10

12

Pharmaceutical

4

4

 

17

17

Real Estate

1

2

 

7

13

Retail

 

3

4

19

19

Services

3

3

6

20

16

Telecommunications

3

1

2

4

11

Transportation

2

1

 

9

10

Utility

1

 

2

11

4

104

94

98

558

507


Copyright 2014 Challenger, Gray & Christmas, Inc.


CEO DEPARTURES

By State

EAST

MAY

Y-T-D

New York

8

31

Pennsylvania

6

28

Massachusetts

3

15

Maryland

1

13

Dist. of Columbia

5

10

New Jersey

 

9

Connecticut

1

8

Maine

 

7

Rhode Island

 

2

Delaware

1

2

Vermont

1

2

New Hampshire

 

0

TOTAL

26

127

MIDWEST

MAY

Y-T-D

Missouri

3

21

Illinois

1

19

Ohio

2

16

Kansas

4

15

Minnesota

4

15

Wisconsin

1

10

Indiana

2

8

Iowa

 

7

Nebraska

1

4

Michigan

 

3

TOTAL

17

117

 

CEO DEPARTURES

By State

WEST

MAY

Y-T-D

California

13

75

Texas

8

49

Colorado

1

14

Washington

3

12

Oregon

 

8

Nevada

2

7

Utah

1

5

Arizona

1

4

Alaska

1

4

Oklahoma

 

3

New Mexico

 

2

Wyoming

1

2

South Dakota

 

2

Hawaii

1

1

Idaho

 

1

North Dakota

 

1

Montana

 

0

TOTAL

32

190

SOUTH

MAY

Y-T-D

Florida

4

28

Tennessee

4

20

N. Carolina

2

15

Virginia

3

15

Kentucky

2

10

Arkansas

1

7

Alabama

3

6

Georgia

 

5

S. Carolina

1

5

Louisiana

 

5

Mississippi

 

5

West Virginia

2

2

TOTAL

22

123

Copyright 2014 Challenger, Gray & Christmas, Inc.

 

CEO DEPARTURES

By Reason

 

14-May

Y-T-D

Resigned

22

154

Retired

24

142

Step Down

21

113

New position in another company

10

57

Interim Period Ended

6

35

Acquisition/Merger

2

14

Ousted

3

13

Another position within company

3

10

Died

 

3

Restructuring

 

3

Scandal

2

3

Health

 

2

Contract Dispute/Expiration

1

2

Legal Trouble

1

2

Bankruptcy

2

2

Differences with Board

 

1

Federal Regulation

 

1

Financial Losses

1

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

 

65.1

 

13.9

July

 

57.8

 

10.1

August

 

59.1

 

8.9

September

 

57.8

 

7.9

October

 

65

 

12.4

November

 

71.7

 

11.2

December

 

60.7

 

10.0

Copyright 2014 Challenger, Gray & Christmas, Inc.









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