June 2013 CEO Turnover Report: Departures On Pace With Last Year

The number of chief executive officer departures totaled 94 in June, down 9.6 percent from 104 in May and 5.0 percent lower than the 99 departures recorded in the same month last year, according to the latest report on CEO turnover released Wednesday by global outplacement consultancy Challenger, Gray & Christmas, Inc.

June marked the end of a slightly less active quarter for CEO turnover.  For the three-month period ending June 30, a total of 292 CEO departures were announced, a 10 percent decline from the 309 departures announced in the first quarter.  The second quarter total was virtually unchanged from the same period a year ago when 288 CEO changes were announced, a 1.3 percent reduction.

Challenger has now tracked 601 CEO changes so far this year, which is virtually equal to the 609 departures recorded in the first six months of 2012.

For the year, health care continues to see the heaviest turnover.  It leads all other sectors with 117 in 2013, including an industry-leading 24 in June. Of those 117 health care and medical device companies, 74 CEO changes came from hospitals and hospital systems.

“Changes resulting from health care reform law, coupled with sequestration, which are resulting in funding cuts and lower Medicare reimbursements, could be the catalyst for leadership changes,” said John Challenger, chief executive officer of global outplacement and executive consulting firm Challenger, Gray & Christmas.

Get the full report here.

Survey Results: Are Employers Prepared For The Affordable Care Act?

Despite the potential for increased costs and more regulatory red tape, 82 percent of companies recently surveyed by global outplacement consultancy Challenger, Gray & Christmas, Inc. plan to continue providing health care coverage to their workers when the employee mandate provision of the Affordable Care Act goes into effect on January 1, 2014.

Surprisingly, none of the 100 human resources executives surveyed by Challenger said that their companies plan to drop health coverage when the mandate begins.  Only 2 percent of respondents indicated that their companies do not currently offer health coverage and have no plans to add coverage beginning in 2104.

While the employer mandate is just six months away from kicking in, about one in ten (11.1 percent) said their companies have not reached a decision on health care coverage under the Affordable Care Act.

“It appears that concerns about companies’ nationwide dropping health plans may have been premature.  Certainly, some companies will decide it is more economical to pay the penalties than provide healthcare, but for those that have been offering coverage voluntarily for many years, it is unlikely that the new law will prompt them to suddenly stop, ” said John A. Challenger, chief executive officer of Challenger, Gray & Christmas. Continue reading

104 CEO Changes In February, Health Care Leads

Turnover among the nation’s top executives fell slightly in February as 104 chief executive officers announced their departures, down 15 percent from 123 in January, according to the monthly report on CEO turnover released Tuesday by global outplacement firm Challenger, Gray & Christmas, Inc.

While February departures declined from the previous month, they were up13 percent from the same month a year ago, when 92 CEO exits were recorded.  Chief executive officer departures are now up 17 percent from a year ago, with a total of 227 departures tracked through the first two months of the year compared to187 at the same point in 2011.

The health care sector experienced the highest CEO turnover in February with 19 departures, which brings the year-to-date total for the sector to 44.  The two-month departure total is double the 22 health care CEO departures recorded in the January and February 2011.

**Our Job Cut Report for February will be released Thursday, March 8 at 7:30AM EDT**

Download the CEO report here.