CEO Turnover Down 9% in January Versus Year Ago
The new year began with 96 chief executive officer changes, a CEO turnover report released Wednesday revealed. The changes, announced in January by U.S.-based companies, are down 9% from the 107 turnovers in December.
The report, from global outplacement consultancy Challenger, Gray & Christmas, mentioned that several prominent firms were among those announcing leadership changes, including Advanced Micro Devices (NYSE:AMD), Google (NASDAQ:GOOG) and eHarmony. January’s total was 8% higher than the same month one year ago, when 89 CEO changes were reported by the consultancy.
Of the turnovers, 31 were resignations and 25 CEOs stepped down, but will remain with their respective companies in some capacity.
“We could see more changes like this as the economy continues to pull out of recession," said John Challenger, CEO of Challenger, Gray & Christmas. "Despite evidence that stability at the top is a key element to long-term success, many companies feel that certain CEOs are better suited for holding the ship steady through rough waters, while others are better for expansion.”
Challenger’s press release comes shortly after Apple (NASDAQ:AAPL) chief executive and co-founder Steve Jobs took a medical leave of absence, appointing chief operating officer Timothy Cook to handle day-to-day tasks at the company. Although this move was not included in the findings, it is cited as notable for the technology sector.
Other notable CEO changes last month included the resignation of Julian Day of RadioShack (NYSE:RSH) and the retirement of Harry Buckley at Jackson Hewitt (NYSE:JTX).