The number of CEOs leaving companies has slowed dramatically says outplacement firm Challenger, Gray & Christmas…
Departures by chief executive officers, which have slowed significantly from 2008 levels, totaled 78 in April. That represents the lowest monthly figure since December 2004, according to a report by global outplacement consultancy Challenger, Gray & Christmas, Inc.
April departures were down 32 percent from March, when 114 CEOs left their posts. Last month’s total was 30 percent lower than the 112 departures announced in April 2008.
So far this year, 387 CEO exits have been recorded, nearly 100 fewer than the 483 announced during the same period last year.
“The numbers suggest companies are making efforts to maintain some stability at the top of the corporate ladder in this volatile economy. At the same time, many CEOs are content to stay at their posts, knowing that opportunities might be limited,” said John A. Challenger, chief executive officer of Challenger, Gray & Christmas.
“In general, we are seeing a lot less risk-taking right now, because the recession and uncertainty on Wall Street will only magnify any missteps.”
Many of the CEOs leaving their posts in April will stay with their companies in some capacity. Of the 22 CEOs who stepped down into other positions last month, 10 retained their position as chairman or executive chairman, including William Lauder of Estee Lauder who announced he would remain chairman after stepping down at the end of the year.
Twenty CEOs resigned from their posts and another 15 retired. Only seven CEOs left for new positions in other companies, offering evidence of how few opportunities exist for lateral movement. A year ago, 18 of the 112 CEO departures were executives leaving for other companies.
Health care and the technology sector – computer, electronics, telecommunication and e-commerce – led all industries with 14 departures each. The service sector and government/non-profit sector each saw eight CEO departures.
Meanwhile, the financial industry has seen only 35 CEO departures so far this year, compared with 54 through the same period last year.
“The fact that we are seeing increased stability in the financial markets – not only in terms of CEO turnover, but with job-cutting activity, as well – is a sign that we may have reached the bottom. We may continue to experience low CEO turnover for the remainder of this recession. However, a recovery could bring more volatility in the C-suite, as companies move from a defensive stance to a more aggressive, risk-taking stance,” said Challenger.
