CEO Departures Stay High

August 6th, 2014
in econ_news, syndication

US-BASED COMPANIES ANNOUNCE 105 CEO CHANGES IN JULY

by Challenger Gray and Christmas

The pace of turnover among the nation’s chief executive officers was virtually unchanged in July, as 105 CEOs announced their departures during the month, according to a report issued Wednesday by global outplacement consultancy Challenger, Gray & Christmas, Inc.

Follow up:

The July total was up 1.9 percent from the 103 CEO departures recorded in June. It was 17.9 percent lower than the 128 CEO changes announced the same month a year ago.

Through the first seven months of the year, US-based companies have announced 766 CEO changes, 5.1 percent more than the 729 CEO exits tracked through July 2013.

Health organizations lead July with 26 announced changes, totaling 180 so far in 2014. That is nearly 19.2 percent more than the 151 departures health care organizations announced during the same period last year.

Industry

JULY

Y-T-D

Health Care/Products

26

180

Government/Non-Profit

16

118

Financial

16

84

Computer

7

75

Entertainment/Leisure

4

35

 

Government and non-profit agencies announced 16 CEO departures, as did firms in the financial industry. Computer firms announced 7 CEO changes in July.

California leads all states in CEO departures this year with 102, 14 of which occurred in July. Texas follows with 62 CEO departures this year. Pennsylvania and Florida each have 40 departures, while New York has seen 39.

Thirty-one CEOs resigned last month, while 30 retired. Thirteen found new positions in other companies, and seven saw their interim periods end.

Perhaps, the most notable CEO announcement in July came from Target, which grabbed headlines by bringing in an outsider as its CEO for the first time in the company’s history. Brian Cornell leaves his post as the top executive PepsiCo Americas Foods to fill the office vacated by Gregg Steinhafel in May in the wake of the now infamous credit card security breach. John Mulligan, CFO for Target, has been interim CEO since Steinhafel’s departure.

Jarden Brands replaced Yankee Candle’s CEO Harlen Kent with former merchandising manager Hope Margala after purchasing the consumer brand last year for $1.75 billion. Margala also served as CMO for Longaberger Co. and worked on brands for Bath & Body Works and Victoria Secret. Said John A. Challenger, chief executive officer of Challenger, Gray & Christmas:

Meanwhile, as these CEO positions get filled in the retail and consumer products arenas, struggling retailer JC Penney is still seeking a successor to Myron Ullman, who was brought back to the company to reverse the damage done by his first successor, Ron Johnson. JC Penney reportedly offered the job to Cornell, who accepted the Target offer instead. These recent hires could narrow the field of potential candidates to eventually take the reins from Ullman.

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

 

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

766

1,246

1,214

1,178

1,234

1,227

1,484

 

Copyright 2014 Challenger, Gray & Christmas, Inc.

CEO DEPARTURES

By Industry

 

13-Jul

14-Jun

14-Jul

Jan-Jul 2014

Jan-Jul 2013

Aerospace/Defense

 

1

1

11

7

Apparel

1

2

1

6

4

Automotive

1

 

1

5

9

Chemical

 

 

 

2

2

Commodities

3

 

 

1

3

Computer

15

1

7

75

77

Construction

1

1

 

9

7

Consumer Products

2

3

4

17

14

Electronics

 

1

4

16

12

Energy

2

1

1

17

25

Entertainment/Leisure

5

5

4

35

29

Financial

19

11

16

84

92

Food

1

3

 

13

24

Government/Non-Profit

20

19

16

118

98

Health Care/Products

34

29

26

180

151

Industrial Goods

1

2

4

30

19

Insurance

 

3

1

9

10

Legal

 

 

 

1

4

Media

3

5

2

17

18

Pharmaceutical

6

4

5

26

23

Real Estate

 

 

1

8

14

Retail

2

7

4

30

23

Services

3

4

2

26

24

Telecommunications

5

1

2

7

17

Transportation

2

 

2

11

15

Utility

2

 

1

12

8

128

103

105

766

729

 

Copyright 2014 Challenger, Gray & Christmas, Inc.

CEO DEPARTURES

By State

EAST

JULY

Y-T-D

Pennsylvania

7

40

New York

3

39

Massachusetts

5

24

Maryland

 

15

Dist. of Columbia

1

13

New Jersey

2

13

Connecticut

 

11

Maine

1

8

Rhode Island

1

4

Delaware

1

3

Vermont

 

2

New Hampshire

 

0

TOTAL

21

172

MIDWEST

JULY

Y-T-D

Minnesota

5

27

Illinois

5

25

Missouri

1

24

Ohio

2

19

Wisconsin

2

16

Kansas

 

15

Indiana

1

10

Iowa

1

10

Michigan

1

6

Nebraska

 

6

TOTAL

18

158

CEO DEPARTURES

By State

WEST

JULY

Y-T-D

California

14

102

Texas

7

62

Washington

7

21

Colorado

1

18

Nevada

3

11

Oregon

1

11

Utah

2

7

Arizona

1

5

Oklahoma

 

5

Alaska

1

5

New Mexico

 

4

Wyoming

1

3

Hawaii

1

2

South Dakota

 

2

Idaho

 

1

North Dakota

 

1

Montana

 

0

TOTAL

39

260

SOUTH

JULY

Y-T-D

Florida

7

40

Virginia

6

27

Tennessee

4

26

N. Carolina

2

20

Kentucky

2

13

Arkansas

2

10

Georgia

1

9

Alabama

1

8

Louisiana

1

8

Mississippi

1

7

S. Carolina

 

6

West Virginia

 

2

TOTAL

27

176

Copyright 2014 Challenger, Gray & Christmas, Inc.

 

CEO DEPARTURES

By Reason

 

14-Jul

Y-T-D

Resigned

31

216

Retired

30

193

Step Down

13

138

New position in another company

13

85

Interim Period Ended

7

50

Ousted

3

22

Acquisition/Merger

3

17

Another position within company

1

12

Health

2

6

Bankruptcy

1

6

Scandal

 

5

Died

 

3

Restructuring

 

3

Financial Losses

1

3

Contract Dispute/Expiration

 

2

Legal Trouble

 

2

Differences with Board

 

1

Federal Regulation

 

1

Cost-Cutting

 

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

 

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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