The nation”™s CEOs are staying put.
According to a report by global outplacement firm Challenger, Gray & Christmas Inc., there were only 95 CEO departures in the U.S. during the third quarter of 2012, the lowest total since the fourth quarter of 2011.
Overall, the pace of CEO exits has slowed slightly from 2011. This year, 891 CEO departures have been announced so far, including 282 in the third quarter. The third-quarter total is 12 percent lower from the 316 CEO departures in the 2011’s third quarter.
Health care has had the heaviest CEO turnover in 2012, with 182 departures ”“ a 23 percent increase from last year.
“Health care has always been a top sector for CEO turnover, due in large part to the sheer number of hospitals and health-related services in this country. However, we are seeing a greater number of leadership changes than in previous years,” said John A. Challenger, CEO of Challenger, Gray & Christmas, in a press release.
There are several contributing factors to the heavy CEO turnover in health care, Challenger said, “including the economic impact on the financial health of hospitals and the inevitable changes necessary through impending legislation.”
Resignation is the most-often cited reason for CEO departures, with 263 this year, including 35 in September. Additionally, 148 CEOs have “stepped down” this year, which means they no longer hold the CEO title, but remain with the company in some other capacity, typically as a board member or chairman of the board.
