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Challenger: January CEO Turnover Highest Since May 2010
2012 Begins With CEO Turnover Surge – 123 Changes in January Highest Since May 2010
Chicago – February 8th, 2012 — The new year brought a surge in turnover among the nation’s chief executive officers, as 123 left their posts in January. That is the highest monthly total since May 2010 when 125 changes were recorded, according to the monthly report on CEO turnover released Wednesday by global outplacement and executive coaching firm Challenger, Gray & Christmas, Inc.
The 123 January CEO departures was a 48 percent increase from the 83 exits recorded in December. Last month’s total was 28 percent higher than January 2011, when 96 chief executive departures were announced.
“2011 saw relatively mild CEO turnover as companies tried to determine how best to maneuver the economic climate. Companies were focused on cutting costs and doing more with less. Now, as jobs begin to trickle back and other factors signal economic growth, companies may try to find leaders who are able to drive expansion,” said John A. Challenger, chief executive officer of Challenger, Gray & Christmas.
Health care had the highest CEO turnover last month with 25 CEO departures, up from nine a year ago. Health care organizations saw the heaviest CEO turnover among all sectors in 2011, as 187CEOs left their posts; an average of nearly 16 per month.
Last month, health care was followed by financial services firms which had 13 CEOs announce their departures, including Michael Williams of embattled lender Fannie Mae who announced he would resign after a successor was named. Williams’ announcement comes on the heels of outcry over huge taxpayer-funded compensation packages. Freddie Mac’s CEO Charles Haldeman Jr. announced last October he would resign some time this year.
Meanwhile, the government/non-profit sector experienced 11 chief executive changes while the computer industry saw 10.
Of the 123 departures announced last month, 39 were resignations, according to Challenger tracking. The relatively vague reason for departure is typically the most commonly cited. It was followed last month by retirement, which was cited by 32 exiting CEOs. Another 25 stepped down into other roles within the leadership structure, usually as the Chairman.
Besides Williams at Fannie Mae, other notable departures include Tom Curley of the Associated Press who retired after 9 years at the helm. Wayne Gattinella of WebMD resigned amid falling revenue and an abandoned sale of the company. Glen Senk resigned from retailer Urban Outfitters, replaced by chairman of the board Richard Hayne.
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| CHIEF EXECUTIVE DEPARTURES | ||||||
| 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | |
| January | 123 | 96 | 89 | 113 | 134 | 114 |
| February | 92 | 132 | 82 | 114 | 127 | |
| March | 99 | 119 | 114 | 123 | 103 | |
| April | 103 | 101 | 78 | 112 | 126 | |
| May | 103 | 125 | 115 | 115 | 144 | |
| June | 113 | 107 | 105 | 126 | 105 | |
| July | 104 | 88 | 126 | 124 | 88 | |
| August | 104 | 95 | 101 | 144 | 124 | |
| September | 108 | 111 | 105 | 140 | 112 | |
| October | 91 | 81 | 89 | 125 | 96 | |
| November | 82 | 79 | 94 | 104 | 132 | |
| December | 83 | 107 | 105 | 123 | 85 | |
| TOTAL | 123 | 1,178 | 1,234 | 1,227 | 1,484 | 1,356 |
| Challenger, Gray & Christmas, Inc.© | ||||||
CHIEF EXECUTIVE DEPARTURES
Public vs. Private
| January 2012 | January 2011 | 2011 Year-End Total | |
| Private | 93 | 71 | 882 |
| Public | 30 | 25 | 296 |
CEO DEPARTURES
By Industry
| Jan-12 | Jan-11 | |
| Health Care/Products | 25 | 9 |
| Financial | 13 | 9 |
| Government/Non-Profit | 11 | 12 |
| Computer | 10 | 7 |
| Pharmaceutical | 9 | 4 |
| Services | 8 | 9 |
| Retail | 6 | 5 |
| Electronics | 5 | 8 |
| Energy | 5 | 3 |
| Entertainment/Leisure | 5 | 3 |
| Media | 4 | 2 |
| Construction | 3 | 1 |
| Consumer Products | 3 | 2 |
| Insurance | 3 | 1 |
| Utility | 3 | 1 |
| Food | 2 | 1 |
| Industrial Goods | 2 | 4 |
| Transportation | 2 | 1 |
| Aerospace/Defense | 1 | 3 |
| Chemical | 1 | 1 |
| Commodities | 1 | |
| Telecommunications | 1 | 2 |
| Apparel | 3 | |
| Automotive | 3 | |
| Legal | ||
| Real Estate | 2 | |
| TOTAL | 123 | 96 |
CEO DEPARTURES
By Reason
| Jan-12 | Jan-11 | |
| Resigned | 39 | 31 |
| Retired | 32 | 15 |
| Step Down | 25 | 25 |
| New position in another company | 11 | 6 |
| Interim Period Ended | 7 | 7 |
| Acquisition/Merger | 3 | 2 |
| Another position within company | 3 | 4 |
| Died | 2 | 2 |
| Removed | 1 | 2 |
| Health | 1 | |
| Scandal | ||
| Ousted | ||
| Bankruptcy | ||
| Pressure From Board | 1 |
CEO DEPARTURES
Average Age, Tenure
| Age | Tenure | |||
| 2012 | 2011 | 2012 | 2011 | |
| January | 61.3 | 60.8 | 6.9 | 7.6 |
| February | 61.7 | 9.6 | ||
| March | 60 | 7.4 | ||
| April | 63.2 | 8.1 | ||
| May | 55.7 | 7.1 | ||
| June | 62.4 | 8.1 | ||
| July | 56 | 11.9 | ||
| August | 59.4 | 7.3 | ||
| September | 64.7 | 5.1 | ||
| October | 61.8 | 9.8 | ||
| November | 58.4 | 7.0 | ||
| December | 66.7 | 7.7 | ||
Copyright 2012 Challenger, Gray & Christmas, Inc.
Posted by RecruitingTrends.com
on February 8, 2012. Filed under News.
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