The revolving door for the nation’s chief executive officers was the slowest in five years in 2009, with companies announcing 1,227 CEO departures during the year, global outplacement consultant Challenger, Gray & Christmas Inc.
The 2009 year-end total is 17 percent lower than the record 1,482 CEO departures in 2008, Chicago-based Challenger Gray said. It is the lowest annual total since 2004, when just 663 were recorded.
Interestingly, while the health care industry remains one of the more stable sectors of the economy, it leads all other industries in CEO turnover. For the fifth consecutive year it led all departures with 203. That was down from the 285 CEO changes the industry announced in 2008.Â
The second-ranked government/non-profit industry announced 163 in 2009, Challenger Gray said in its annual CEO Turnover Report. It was followed by the financial industry, which saw 123 departures by CEOs. The technology industry, which includes computer, e-commerce, electronics and telecommunications firms, had 209 chief executive changes.
Among the more notable CEO exits in 2009, was General Motors’ Rick Wagoner, who was ousted in March. The struggling automaker then saw its second CEO exit of the year in December when the government-appointed Fritz Henderson took his leave.
Meanwhile, one-time Home Depot CEO Robert Nardelli lost the top spot at Chrysler in April, when it descended into bankruptcy.
Kenneth Lewis retired as CEO of Bank of America after overseeing a tumultuous merger with Merrill Lynch & Co. Morgan Stanley’s John Mack relinquished his title, becoming chairman of the board.
The 78 CEO departures recorded in May was the lowest monthly total since 56 CEO changes were announced in December 2004.
The year ended with 105 chief executive exits in December, a slight increase over the 94 announced in November. The December total was 15 percent lower than the same period last year, when 123 CEOs left their posts.
