CEO Turnover Down in October; Health Care Shows Most Departures

   By Everdeen Mason 
 

Turnover among the nation's chief executives dropped in October as the health-care landscape continues to change under government policy, according to Challenger Gray and Christmas Inc.

The outplacement and executive-coaching firm reported 104 CEOs planned to depart in October, down from 107 CEOs in September and 108 CEO departures a year ago.

Once again, the health-care sector led in CEO turnover, with 29 CEOs leaving their posts. Year-to-date, health care institutions announced 225 CEO departures this year, the highest turnover of all the sectors.

The second-highest turnover occurred in the government and non-profit sector and included the departure of Laura Santucci of the National Democratic Committee.

The government and non-profit sector saw 18 departures this month, followed by financial firms with 15 CEO departures.

These three sectors "are struggling the most in the current environment," said John Challenger, the firm's CEO, in a statement. "Health care systems are dealing with cuts in Medicare and Medicaid funding. Government agencies and non-profits that depend on government funding are in cost-cutting mode, as federal and state lawmakers seek ways to cut massive deficits. The financial sector still has not fully recovered from the recession."

Retirement was the most common reason for departure with 30 CEOs retiring in October. Resignations, the leading reason year-to-date, was cited by 28 CEOs, while 17 CEOs found new positions with other companies and 13 stepped down into other chief-level or board positions.

Write to Everdeen Mason at [e-mail]

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