July 2013 CEO Turnover Surges to 128

Turnover among the nation’s chief executive officers surged to the highest level in more than three years last month as 128 announced their departures.  The July total was up 36 percent from the 94 CEO exits recorded in June, according to the latest report on CEO turnover released Wednesday by global outplacement consultancy Challenger, Gray & Christmas, Inc.

July departures increased 54.2 percent from a year ago, when 83 CEO changes were recorded.  It was the highest monthly total since February 2010, when 132 CEOs left their posts.

Challenger has now tracked 729 CEO changes so far this year, 5.3 percent more than the 692 recorded in the first seven months of 2012.  It is the first time in 2013 that the year-to-date total exceeds the number of departures from the comparable period in 2012.

Health companies, which include medical diagnostic manufacturers, imaging software developers, and hospitals, produced the bulk of July’s total with 34 CEO changes, 17 of which came from hospitals and hospital systems. Health care continues to lead all sectors in CEO turnover with 151, 7.8 percent more than the 140 recorded through July 2012.

Government and non-profit organizations announced 20 CEO changes in July and 98 for the year, virtually equal to the 94 departures recorded through the first seven month of 2012. Financial firms follow with 19 chief executive changes in July and 92 for the year, a whopping 61.4 percent increase from the 57 financial CEO changes tracked through July of 2012.

 

Companies in the computer industry announced 15 CEO departures in July bringing the year-to-date total to 77, 10 percent more than the 70 announced through July of last year. One of the most notable CEO changes last month came from struggling game developer Zynga, who replaced founder Mark Pincus with former Xbox head Don Mattrick.

 

“Some companies saw their fiscal year come to an end on June 30.  So, it is not unusual to see some volatility as organizations reassess leadership and make changes, based on financial performance over the previous year.  Chief executives are particularly vulnerable when the fiscal year-end results are not very positive.  There were at least three CEO changes last month amid poor financial performance, including Zynga,” said John Challenger, chief executive officer of Challenger, Gray & Christmas.

 

Retirement was the most oft-cited reason for leaving in July, as 41 CEOs announced they would retire bringing the year-to-date total to 162.  Resignation followed with 30, but is the most used reason so far in 2013 with 202. The number of chief executives stepping down, usually staying with the organization as chairman of the board, a director, or in some executive capacity, totals 130 so far this year, including 19 in July.  Another 102 CEOs found new positions in other companies this year, 14 of whom occurred in July.

 

# # #

 

 

CHIEF EXECUTIVE DEPARTURES

 

 

 

 

 

 

 

 

 

 

2013

2012

2011

2010

2009

2008

2007

January

113

123

96

89

113

134

114

February

110

104

92

132

82

114

127

March

86

94

99

119

114

123

103

April

94

90

103

101

78

112

126

May

104

99

103

125

115

115

144

June

94

99

113

107

105

126

105

July

128

83

104

88

126

124

88

August

 

104

104

95

101

144

124

September

 

95

108

111

105

140

112

October

 

108

91

81

89

125

96

November

 

112

82

79

94

104

132

December

 

103

83

107

105

123

85

TOTAL

729

1,214

1,178

1,234

1,227

1,484

1,356

Challenger, Gray & Christmas, Inc.©

 

 

 

 

 

CHIEF EXECUTIVE DEPARTURES

Public vs. Private

 

13-July

2013 YTD

2012 YTD

Private

101

584

477

Public

27

145

132

 

 

 

 

 

Copyright 2013 Challenger, Gray & Christmas, Inc.


 

CEO DEPARTURES

By Industry

 

 

12-Jul

13-Jun

13-Jul

12-YTD

13-YTD

Aerospace/Defense

 

1

 

8

7

Apparel

1

 

1

1

4

Automotive

1

2

1

6

9

Chemical

 

1

 

4

2

Commodities

 

 

3

2

3

Computer

9

3

15

70

77

Construction

2

1

1

10

7

Consumer Products

3

1

2

18

14

Electronics

1

2

 

16

12

Energy

3

4

2

31

25

Entertainment/Leisure

4

2

5

27

29

Financial

9

8

19

57

92

Food

3

2

1

16

24

Government/Non-Profit

11

21

20

94

98

Health Care/Products

13

22

34

140

151

Industrial Goods

2

4

1

17

19

Insurance

3

2

 

17

10

Legal

 

1

 

 

4

Media

2

3

3

20

18

Pharmaceutical

4

 

6

29

23

Real Estate

1

1

 

9

14

Retail

3

2

2

23

23

Services

5

5

3

40

24

Telecommunications

1

1

5

9

17

Transportation

1

3

2

18

15

Utility

1

2

2

10

8

TOTAL

83

94

128

692

729

 

 

Copyright 2013 Challenger, Gray & Christmas, Inc.


 

CEO DEPARTURES

By Reason

 

13-Jul

Y-T-D

Resigned

30

202

Retired

41

162

Step Down

19

130

New position in another company

14

102

Interim Period Ended

11

56

Acquisition/Merger

4

17

Another position within company

2

15

Ousted

2

14

Contract Dispute/Expiration

1

8

Scandal

 

4

Bankruptcy

1

4

Financial Losses

3

4

Health

 

3

Died

 

3

Legal Trouble

 

2

Family

 

1

Differences with Board

 

1

Liquidation

 

1

 

CEO DEPARTURES

Average Age, Tenure

 

Age

Tenure

 

2013

2012

2013

2012

January

52

61.3

7.9

6.9

February

 56.6 

 57.9 

 8.3

 9.8 

March

54.2

62.1

 6.9

8.3

April

57.4

58

 10.3

8

May

62.2

62.2

 10.1

7.9

June

65.1

57.8

 13.9

8.4

July

57.8 

52.3

 10.1

 6.8 

August

 

65.7

 

8.9

September

 

60.1

 

8.2

October

 

68.5

 

8.5

November

 

62.4

 

7.3

December

 

66.5

 

  11.9

 

Download the report here.

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