Turnover among the nation’s chief executives rose in November, as 106 CEO departures were announced during the month, according to a report released Wednesday by global outplacement consultancy Challenger, Gray & Christmas, Inc.
The November total was 7 percent higher than the 99 departures recorded in October, and 23 percent higher than November 2015, when 86 CEO changes were tracked. Last month marks the eighth time this year that CEO changes were higher than the corresponding month a year ago.
Challenger has tracked 1,149 CEO changes so far this year, 3.8 percent more than the 1,107 departures announced through 11 months in 2015.
“It is too soon to say whether this rise in CEO departures is in any way related to the recent election results. Certainly, companies will be reviewing and may very well alter business strategies based on the new administration but, at the moment, it is difficult to say how a Trump White House will impact business,” said John A. Challenger, chief executive officer of Challenger, Gray & Christmas.
November CEO departures were led by government/non-profit entities which announced 17 CEO departures last month. Government/non-profit institutions are leading all industries in CEO changes so far this year with 195. This industry has announced 21 percent more CEO changes in 2016 than through the same period last year when 161 were recorded.
Computer companies announced the second highest number of CEOs last month with 15. Companies in this industry have announced 120 chief executive changes this year, 21 percent more than the 99 announced through November last year. Financial firms have announced the second highest number of CEO departures this year with 144, 13 in November.
California leads the country in announced CEO departures in 2016 with 108, including 10 last month, followed by Texas with 105. Both New York and Florida have recorded 74 CEO changes this year. Companies in Illinois have announced 55 changes this year, including 7 in November.
Retirement was the most oft-cited reason for departure so far this year as 312 chief executives used this reason, 20 in November. Another 253 resigned, while 246 stepped into other positions, usually at the C-level or as board chair. Forty-three CEOs were ousted, while 124 found new positions in other companies.Download Resource