Wednesday, September 09, 2009

[IWS] CEO DEPARTURES FALL 20% from 9-MONTH HIGH in JULY [9 September 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, Inc.

James K. Pedderson, Director of Public Relations
Office: 312-422-5078
Mobile: 847-567-1463

Colleen Madden, Media Relations Manager
Office: 312-422-5074

CEO Departures Fall 20% >From 9-Month High in July

CHICAGO, September 9, 2009 ­ It has been a volatile year for chief executive officer turnover.  The trend was further demonstrated in August as 101 CEO changes were recorded during the month, marking a 20 percent decline from a nine-month high of 126 in July.  The August total is the second lowest of the year, according to the latest report on CEO turnover released Wednesday by global outplacement firm Challenger, Gray & Christmas, Inc.

The 101 CEO changes announced in August were 30 percent lower than the 144 announced in the same month a year ago.   This is the sixth time this year that monthly CEO turnover decreased from the same period in 2008.

For the year, CEO departures total 834, down 16 percent from 2008, when 992 CEO changes were announced between January and August.

          "While we are still seeing more than 100 CEO exits per month, the pace of turnover has slowed significantly from last year's record pace.  This downward trend is likely to continue for the remainder of the year, as companies try to maintain their footing and stabilize operations after a stormy economic climate," said John Challenger, CEO of global outplacement and executive coaching firm Challenger, Gray & Christmas, Inc.

"However, it is possible that turnover among CEOs will increase in 2010, as some companies respond to the recovery by installing more growth-oriented leadership."

          Energy led all industries last month with 15 followed by 14 in the computer industry and 13 in health care.  For the year, health care CEOs lead all sectors in turnover with 134, followed by the government/non-profit sector with 100.  The computer sector has 88, while the technology sector as a whole ­ computer, telecommunication, electronics and e-commerce combined ­ has seen 153 CEO changes this year.

The aerospace/defense sector saw a high-profile retirement last month in Boeing Commercial Airplanes president and CEO Scott Carson whose 787 Dreamliner program has taken considerable heat since pushing back the original 2007 flight date.  He will be replaced by Jim Albaugh, president and CEO of Boeing Integrated Defense Systems.

The most common reason for August CEO departures was resignation, accounting for 25 of the 101 exits.  Meanwhile, 22 retired, including Boeing's Carson.  Nineteen stepped down into other positions within the company, primarily as Chairman or board member.  Ten found new positions in other companies, while 5 found another position within the company, usually heading another unit or division.

# # #
                 2009    2008    2007    2006    2005
January         113     134     114     139     92
February        82      114     127     112     103
March   114     123     103     87      129
April            78      112     126     115     117
May              115     115     144     148     120
June             105     126     105     127     120
July             126     124     88      118     96
August  101     144     124     114     116
September                140     112     152     121
October                  125     96      122     96
November                 104     132     113     118
December                 123     85      131     94
TOTAL   834     1,484   1,356   1,478   1,322

Challenger, Gray & Christmas, Inc.©
Copyright 2009 Challenger, Gray & Christmas, Inc.

AND MORE TABLES...from CHALLENGER...including the following:

Average Age, Tenure of Departing CEOs

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                
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