January 04, 2008

Near Record CEO and CFO Turnover in ‘07

Corporate management turnover in 2007 was slightly below the record levels registered for 2006 but remained very high, Liberum reports.

CEO, CFO and C-level turnover totals last year registered an overall decline of 5 percent, 2 percent and 2 percent respectively from that of 2006. The actual CEO and CFO changes for 2007 overall, however, were far more "significant" and in many cases were far more high-profile for the companies involved than were those registered in 2006, the research company reports.

Turnover data in 2007 began to trend upwards after the first quarter of 2007 concluded. The first quarter of 2007 recorded dramatic declines from the same quarter in 2006. CEO turnover declined 17 percent, CFO turnover declined 22% and overall C-level management declined 15 percent in the first quarter of 2007 as compared with the same categories in 2006.

The last three quarters of 2007, however, trended upward and are expected to continue at a high level into 2008. Each of the last three quarters showed a similar pattern in overall management changes with the record level of turnover recorded during 2006. Turnover totals for the last three quarters of 2007 were nearly the same as those in 2006 (see the data below).

Liberum attributed the continued high level of management turnover to a number of factors, including increasing shareholder activism, the subprime credit crisis, and increasing independence of many corporate boards.

2007 C-LEVEL MANAGEMENT CHANGE STATISTICS

GRAND TOTAL - 27,357

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