104 CEOs Leave Their Posts Including Jobs, Kelly

CEO Changes Stay Over 100; Remain Unchanged From July

104 CEOs LEAVE THEIR POSTS IN AUGUST

Download the report here.

The most notable chief executive officer departure of 2011, if not the last several years, occurred last month, as Steve Jobs, the iconic CEO of Apple, Inc., announced his resignation.  He was one of 104 chief executive officer departures announced by U.S.-based companies in August, according to the latest report on CEO turnover released Wednesday by global outplacement consultancy Challenger, Gray & Christmas, Inc.

The number of CEO exits recorded in August was unchanged from the 104 in July.  Last month’s total was up 9.4 percent from August 2010, when 95 CEO changes were announced.

Challenger has now tracked 814 CEO departures in 2011, which is 4.9 percent fewer than the 856 CEO changes announced from January through August last year.

“We are seeing an average of just over 100 CEO changes per month, which is about the same as last year and the year before that,” noted John Challenger, chief executive officer of Challenger, Gray & Christmas. “The steady pace of CEO turnover over the last two-and-a-half years could indicate that companies are waiting to see how the recovery plays out before making any dramatic changes in leadership.”

The recession year of 2008 saw a record number of CEO changes, with departures averaging 124 per month and reaching a year-end total of 1,487.  The previous record of 1,478 annual CEO departures came in 2006.

The government and non-profit sector saw the heaviest CEO turnover activity last month with 20 announced departures.  It was followed by the health care sector, which had 19 changes in leadership.  These two sectors also lead all others in year-to-date CEO departures, with health care organizations announcing 128 changes and government/non-profits announcing 108.

Financial services firms have seen 83 CEO changes this year, including 11 in August.  The computer industry follows with 77 CEO departures this year, up from 60 at the same point a year ago. Thirteen of those departures, including Apple’s Jobs, occurred in August.

Other notable departures in August include Robert Kelly of Bank of New York Mellon, who left his post shortly after the company announced 1,500 layoffs.  Kelly cited, “differences in approach to managing the company.” Also, sporting goods retailer Sports Authority replaced CEO David Campisi with Darrell Webb, former Jo-Ann Stores CEO, on an interim basis.

Resignation is the most-often cited reason for CEO departures with 245 this year.  That is down from 264 resignations at the same point in 2010.  Companies have cited retirement 159 times as their leaders’ reasons for leaving.  Additionally, a total of 159 CEOs have “stepped down” this year, which means they no longer hold the CEO title, but remain with the company in some other capacity; typically as a board member or chairman of the board.

“We do not anticipate a sudden surge in CEO changes as the year comes to a close.  Resignations, retirements and other departures are expected to remain steady, as companies attempt to maintain stability through the uncertainty of this recovery.  We could see increased volatility among the ranks of CEOs as the recovery begins to gain momentum and companies opt for leadership that is more growth oriented,” said Challenger.

 

# # #

 

CHIEF EXECUTIVE DEPARTURES    
               
 

2011

2010

2009

2008

2007

2006

2005

January

96

89

113

134

114

139

92

February

92

132

82

114

127

112

103

March

99

119

114

123

103

87

129

April

103

101

78

112

126

115

117

May

103

125

115

115

144

148

120

June

113

107

105

126

105

127

120

July

104

88

126

124

88

118

96

August

104

95

101

144

124

114

116

September  

111

105

140

112

152

121

October  

81

89

125

96

122

96

November  

79

94

104

132

113

118

December  

107

105

123

85

131

94

TOTAL

814

1,234

1,227

1,484

1,356

1,478

1,322

Challenger, Gray & Christmas, Inc.©      

 

 

 

CHIEF EXECUTIVE DEPARTURES

Public vs. Private

  August

2011 Y-T-D

2010 Year-End Total

Private

85

624

956

Public

19

190

278

 

 

 

 

 

 

Copyright 2011 Challenger, Gray & Christmas, Inc.


 

 

CEO DEPARTURES

By Industry

 

INDUSTRY

10-Aug

YTD 2010

11-Aug

YTD 2011

Health Care/Products

19

142

19

128

Government/Non-Profit

11

119

20

108

Financial

8

81

11

83

Computer

10

60

13

77

Services

2

47

4

40

Energy

3

41

6

36

Pharmaceutical

3

37

6

36

Entertainment/Leisure

5

40

4

34

Electronics

6

36

3

33

Legal  

0

3

33

Industrial Goods

7

16

3

26

Consumer Products  

9

2

24

Retail

2

24

2

21

Telecommunications

4

22

1

19

Automotive

2

15

2

18

Insurance  

17

2

14

Utility  

10

2

14

Aerospace/Defense  

3

 

13

Real Estate

1

20

 

13

Transportation

2

28

 

11

Food

3

19

 

10

Apparel

1

4

 

6

Construction

1

15

1

6

Chemical  

6

 

5

Commodities  

6

 

3

Media

5

39

 

3

 

95

856

104

814

 

 

 

Copyright 2011 Challenger, Gray & Christmas, Inc.


CEO DEPARTURES

By Reason

 

August

Year-To-Date

Resigned

31

245

Step Down

24

159

Retired

16

159

New position in another company

15

86

Interim Period Ended

5

60

Another position within company

5

25

Removed

3

15

Acquisition/Merger

1

25

Health

1

7

Fired

1

4

Pressure From Board

1

4

Position Eliminated

1

1

Died

10

Scandal

8

Economic Conditions

3

Bankruptcy

2

Government Regulation

1

 

CEO DEPARTURES

Average Age, Tenure

 

 

Age

Tenure

 

2011

2010

2011

2010

January

 60.8

59

 7.6

8.9

February

 61.7

61.5

 9.6

8.8

March

 60.0

59.2

 7.4

8

April

 63.2

62.1

 8.1

9.5

May

 55.7

63.9

  7.1

8.5

June

 62.4

63.1

 8.1

 9.6

July

 56.0

55.8

 11.9

8.6

August

 59.4

61.8

 7.3

8.3

September

 51.5

 8.0

October

 58.0

9.4

November

62.3

7

December

58.7

 7.2

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s