Wednesday, August 12, 2009

[IWS] Challenger: 126 CEOs LEAVE IN JULY; RECESSION MAY BE GETTING TO SOME [12 August 2009]

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
________________________________________________________________________

Challenger, Gray & Christmas


For Release At 10:00 A.M. EDT, August 12, 2009

CEO Departures Surge 20% to 126
733 CEO EXIT SO FAR IN 2009; PRESSURE OF RECESSION MAY BE GETTING TO SOME
http://challengergray.com/press/press.aspx
[Link will allow one to request a copy of this release]

CHICAGO, August 12, 2009 ­ Turnover among chief executives soared to its highest level since June 2008, as 126 CEO departures were announced in July, according to the latest report released Wednesday by global outplacement firm Challenger, Gray & Christmas, Inc.  Despite the surge, CEO departures remain well below 2008 totals.

The 126 July departures marked a 20 percent increase from the 105 CEO changes recorded in June.  Last month's total was virtually unchanged from July 2008, when 124 CEOs announced they were leaving their companies.

A total of 733 chief executives have left their posts this year, down 14 percent from 848 CEO changes announced during the same period a year ago.
Health care continues to lead all sectors with 121 departures.  The government/ non-profit sector followed with 89, as funding for public services dries up.  The technology industry ­ computer, telecommunications, electronics and e-commerce combined ­ has seen 129 CEO changes this year.

Resignation was the leading cause of July CEO departures, as 35 left their posts for this reason.  Another 30 retired and 28 stepped down from their posts, usually staying on as the chairman or board member.
While many companies and/or exiting CEOs seem reluctant to provide detailed explanations for leadership changes, there is some evidence that the pressure of navigating a company through the tumultuous economy may be taking a toll.  The chief executive and founder of b5media Jeremy Wright cited exhaustion as his main reason for stepping down.
Wright described the circumstances of his exit in his personal blog:

I did it because I was tired, burnt out and recognized that my life wasn't what I wanted it to be. I was working too much, unhappy at home, unhappy at work and just felt completely blah. Basically I did it because a friend asked me what I wanted my life to be… It was then that I realized not only was I unhappy, but that I had no idea what I wanted my life to be.

He remains with the company as a board member.
          "Many chief executives are undoubtedly feeling the heat as the economy continues to struggle.  C-suite executives, like many workers today, are feeling the brunt of the economy, impacting their drive and morale.  While most chief executives cite 'personal reasons' for their departures, many may just decide that they've had enough, that the exhaustion is too much," said John A. Challenger, chief executive officer of Challenger, Gray & Christmas.

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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.

****************************************
Stuart Basefsky                   
Director, IWS News Bureau                
Institute for Workplace Studies 
Cornell/ILR School                        
16 E. 34th Street, 4th Floor             
New York, NY 10016                        
                                   
Telephone: (607) 255-2703                
Fax: (607) 255-9641                       
E-mail: smb6@cornell.edu                  
****************************************

****************************************
Stuart Basefsky                   
Director, IWS News Bureau                
Institute for Workplace Studies 
Cornell/ILR School                        
16 E. 34th Street, 4th Floor             
New York, NY 10016                        
                                            
Telephone: (607) 255-2703                
Fax: (607) 255-9641                       
E-mail: smb6@cornell.edu                  
****************************************





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