Corporatemanagement turnover in 2007 was slightly below the record levels registered for2006 but remained very high, Liberum reports.
CEO, CFO and C-level turnover totals last year registered anoverall decline of 5 percent, 2 percent and 2 percent respectively from that of 2006. The actual CEOand CFO changes for 2007 overall, however, were far more”significant” and in many cases were far more high-profile for thecompanies involved than were those registered in 2006, the research companyreports.
Turnoverdata 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 in2006. CEO turnover declined 17 percent, CFOturnover declined 22% and overall C-level management declined 15 percent in the firstquarter of 2007 as compared with the same categories in 2006.
The last threequarters of 2007, however, trended upward and are expected to continue at ahigh level into 2008. Each of the lastthree quarters showed a similar pattern in overall management changes with therecord level of turnover recorded during 2006. Turnover totals for the lastthree quarters of 2007 were nearly the same as those in 2006 (see the databelow).
Liberumattributed the continued high level of management turnover to a number offactors, including increasing shareholder activism, the subprime credit crisis,and increasing independence of many corporate boards.
2007C-LEVEL MANAGEMENT CHANGE STATISTICS
GRANDTOTAL – 27,357
TOPINDUSTRY SECTORS
- Drugs/Biotech – 2,520
- Banking – 2,376
- Manufacturers – 1,382
TOPINDUSTRY SECTORS FOR NEW HIRES ONLY
GRANDTOTAL – 12,545 or 44% of grand total
- Drugs/Biotech – 1,383
- Banking – 1,185
- Energy – 769
2007C-LEVEL TOTAL BREAKDOWNS BY STATUS
- 17% or 4,596 were internal moves
- 46% or 12,545 were new hires from outside the firm
- 0% or 123 left firms without clear explanation
- 24% or 6,432 were promoted within the firm
- 13% or 3,626 resigned or retired from the firm
- 0% or 35 were terminated