On the heels of the fewest annual CEO departures in six years, turnover among the nation’s chief executive officers remained subdued in January, with just 89 departures announced, according to outplacement experts Challenger, Gray & Christmas.
It was the lowest monthly turnover since October 2009, when 89 CEO departures were also announced, Chicago-based Challenger Gray said Wednesday in its monthly report.
January CEO turnover was down 15 percent from December 2009, when 105 chief executives left their posts. It was 23 percent lower than the 115 CEO departures recorded the same month a year ago.
“In 2008, we saw a record high of 1,484 chief executive officers leave their posts, as companies initiated significant leadership changes in response to worsening economic conditions,” said Challenger Gray CEO John A. Challenger.
“We may be seeing a continuation of this trend or this simply may be the calm before the turnover storm, which could occur as companies seek leaders who are better suited for expansion,” he added.
In January, 24 CEOs retired from their posts, including long-time top executive Howard Lester of retailer Williams-Sonoma. Another 20 resigned, generally for “personal reasons” or to “pursue other opportunities.” Eighteen stepped down into other roles with the company, usually as a board chairman or other high-level executive, while 10 found new positions in other companies
The health care sector led all sectors in chief executive turnover in January with 13. The financial industry followed with nine CEO departures, while government/non-profit organizations announced eight chief executive departures. The retail sector, which continues to struggle amid weak consumer spending, saw CEOs leave their posts.
Among the retail chiefs to exit was Ron Marshall, the former CEO of Borders Group who resigned after being on the job a little over 12 months. Â
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