Turnover among CEOs was up more than 20% in August from July. John Challenger is CEO of global outplacement consultancy Challenger, Gray & Christmas.
“The economy is growing at under 2%. Many companies are not meeting their numbers. As you get closer to year end, you start to see more boards step up and push out their CEOs, because performance has not met the objectives that these companies started the year with.”
For the year, health care continues to see the heaviest turnover, with 21 departures in August. The government/nonprofit sector saw 15 CEOs leave last month, including Nancy Brinker of Susan G. Komen for the Cure. Brinker stepped down amid a string of resignations following Komen’s rift with Planned Parenthood.
Challenger has tracked just under 800 CEO changes for the year, down 2.5% compared to the same period in 2011.