2012 begins with CEO turnover surge
The new year brought a surge in turnover among the nation’s chief executive officers, according to a January report on CEO turnover by outplacement firm Challenger, Gray & Christmas Inc.
Challenger recorded 123 CEO departures in January, a 48 percent increase from the 83 exits recorded in December. Last month’s total was 28 percent higher than January 2011, when 96 CEO departures were announced.
“2011 saw relatively mild CEO turnover as companies tried to determine how best to maneuver the economic climate,” said John Challenger, the firm’s CEO. “Companies were focused on cutting costs and doing more with less. Now, as jobs begin to trickle back and other factors signal economic growth, companies may try to find leaders who are able to drive expansion,”
Health care had the highest CEO turnover last month, with 25 CEO departures, up from nine a year ago. Health care organizations saw the heaviest CEO turnover among all sectors in 2011, as 187 CEOs left their posts; an average of nearly 16 per month.