Challenger, Gray & Christmas says CEO departures are the lowest since December 2004.Î¾ So far this year, 387 CEO exits were recorded — nearly 100 fewer than the 483 announced during the same period last year.Î¾ John Challenger says companies are hanging on to leadership to maintain stability in the volatile economy.
"Certainly one of the reasons is the economy's in rough shape.Î¾ Looks like organizations just don't want to take the risk of letting their leader go when there's not much hope yet of recovery, and leaving their company in the lurch.Î¾ Another reason seems to be that merger and acquisition activity has really slowed down, and that was a real driver of CEO turnover over the past few years."
Many CEOs are staying at their posts, knowing that opportunities might be limited.Î¾ There's a lot less risk-taking, according to the monthly survey.
"It may not be until the economy starts to recover that we really see companies moving out the risk-adverse careful CEOs that are in place now for more pro-active, perhaps business development-oriented CEOs that'll come and be needed in the next wave of growth."
Many resigning CEOs stepped down into other positions, such as chairman or executive chairman, or simply retired.Î¾
Ed Mayberry, KUHF Houston Public Radio News.