George David retired last April from Hartford-based United Technologies Corp. Paul Kuhn retired from Bloomfield-based Kaman Corp. in January a year ago.
They were among America’s 1,484 corporate chief executives who made their way toward the exits in 2008, a record high for CEO turnover, according to Chicago outplacement and executive coaching firm Challenger, Gray & Christmas Inc.
That was an average of nearly 124 CEO departures each month or roughly six every business day. The 2008 total just barely surpassed the previous high mark set in 2006, when 1,478 CEO departures were recorded, according to Challenger Gray’s CEO Turnover Report. Last year’s total was 9.4 percent higher than the 1,356 chief executive changes in 2007.
The pace of CEO turnover did not slow in December, with 123 departures announced. That was 18 percent higher than the 104 departures in November and 45 percent higher than the 85 CEO changes announced a year ago. With December’s 123 departures, no month in 2008 saw fewer than 100 departures, which is unprecedented in Challenger tracking, which began in August 1999.
While 2008 will be remembered for the credit crisis, which resulted in more than 260,000 financial sector job cuts during the year; this industry surprisingly was not the area with the highest CEO turnover.
Health care led all CEO departures for the fourth year in a row with 285, the highest one-year industry total since Challenger began tracking.
The technology sector – computer, electronics, telecommunications and electronic commerce combined – followed with 221 exits. The financial industry saw the third highest turnover with 169, followed closely by 166 CEO departures in the government/non-profit sector.
