CEO Turnover Unchanged In June

Chicago — July 11

The number of chief executive departures reached 99 in June, unchanged from May’s total and a 12 percent decrease from the 113 CEO changes recorded in June of 2011, according to a report on CEO turnover released by global outplacement consultancy Challenger, Gray & Christmas Inc.

June marked the end of a slightly less active quarter for CEO turnover. For the three-month period ending June 30, a total of 288 CEO departures were announced, a 10 percent decrease from the 321 departures announced in the first quarter. The second quarter total was down 9.7 percent from the same period a year ago when 319 CEO changes were announced.

Challenger has now tracked 609 CEO changes so far this year, which is virtually equal to the 606 departures recorded in the first six months of 2011.

For the year, health care continues to see the heaviest turnover. It leads all other sectors with 127 in 2012, including an industry-leading 28 in June. The year-to-date total is a whopping 42.6 percent higher than the 89 health care CEO changes recorded in the first half of 2011.

Computer companies announced 10 CEO changes last month, bringing the six-month total to 61. The computer sector is the third highest industry in turnover so far this year, preceded by the government/nonprofit sector, which has seen 83 CEO departures this year. Firms in the financial sector have seen 48 CEO changes in the first half of the year, with six in June.

Resignation continues to be the most cited reason for departures with 32 in June and 175 for the year. Retirement follows with 137, 27 of which in June. CEOs who have stepped down — usually into the chairman or as some other C-Level executive or board position — number 99 so far this year, with 13 in June.

Source: Challenger, Gray & Christmas Inc.