Through the end of November, 1,122 CEOs have moved on, a decline of 17.6% year-over-year. Last year, 1,361 departures were seen by this point. If the trend continues, CEO turnover could reach its lowest level since 2004, when only 663 occurred.

The health care industry experienced the most changes, with 22 CEOs leaving their posts, bringing the total to 181 for the sector this year, topping all industries. The government and non-profit sector comes next with 148 this year, 18 in November. The financial services industry lost 116 CEOs, with only 10 happening last month.

Continue reading CEO departures slow down, temporarily at least

CEO departures slow down, temporarily at least originally appeared on BloggingStocks on Thu, 10 Dec 2009 08:40:00 EST. Please see our terms for use of feeds.

The latest study that Challenger, Gray & Christmas revealed to BloggingStocks reports that October was the eighth month this year in which CEO turnover was down year-over-year. Through the end of last month, 1,028 CEO positions changed hands -- down 18% from the 1,257 by the same point in 2008. In fact, the tally for the first 10 months of 2009 is the lowest since 2004, when the big office found only 561 new inhabitants.

The financial industry remains the toughest place for CEOs, with 19 leaving the job last month. Even though the situation has gotten easier, this industry still has the highest turnover. For the year, approximately 10% of all CEO departures (106) have been in the financial sector. "The financial industry is still incredibly volatile, as both October and September saw major announcements from leading companies including JP Morgan Chase (JPM), Bank of America (BAC) and last month's bankruptcy of CIT Group, which led to the exit of CEO Jeffrey Peek," John A. Challenger, chief executive officer of Challenger, Gray & Christmas, says.

Continue reading CEO turnover down, not out

CEO turnover down, not out originally appeared on BloggingStocks on Fri, 13 Nov 2009 16:40:00 EST. Please see our terms for use of feeds.

	'Cash for clunkers' programs institutionalizing planned obsolescence
	February wholesale inventory drop may be another 'green shoot'
	Toyota trounces Chrysler in test of consumer 'iQ'
	Should we fire CEOs and liquidate their banks?

DailyFinance today: should we fire CEOs and liquidate their banks, Toyota trounces Chrysler in consumer IQ, February wholesale inventory drop another green shoot, and cash for clunkers institutionalizing planned obsolescence originally appeared on BloggingStocks on Wed, 08 Apr 2009 18:30:00 EST. Please see our terms for use of feeds.

DailyFinance today: Pay for failure with CEOs losing billions, an innovative way to stimulate the economy, home loan modifications not helping, and protestors arrested at Wall Street originally appeared on BloggingStocks on Fri, 03 Apr 2009 17:59:00 EST. Please see our terms for use of feeds.

In the rush to and sheer scope of stabilizing first the financial system, and then key institutions in the financial system, and now jump-starting the U.S. economy, is the United States in danger of not correcting one other possible operational flaw?

One wise and successful CEO told yours truly that the nation might very well be doing just that. Full disclosure: the CEO is a friend of mine.

It starts at the top

The source problem: CEOs, the CEO said. In less than a decade, for reasons which are probably complex, the United States has produced a stunning array of CEOs whose actions have been, at minimum, selfish and unethical, and even fraudulent and illegal.

Now, in the context of a post-September 11 geopolitical world, the senior management flaws would appear to be minor. But from an American standpoint, certainly from a Protestant work ethic standpoint -- the genesis of the American system -- the errors/lapses have been gargantuan.

Continue reading It's been a decade filled with CEOs with eyes wide shut

It's been a decade filled with CEOs with eyes wide shut originally appeared on BloggingStocks on Sun, 11 Jan 2009 16:10:00 EST. Please see our terms for use of feeds.

No one would be shocked that more CEOs travel on commercial flights. Shareholders and workers don't understand why big companies should put management on nice private aircrafts while they suffer.

But in a downturn, stupidity often rules. According to The Wall Street Journal, more and more CEOs are taking public flights and companies are trying to sell company aircraft.

Flying a business jet from coast-to-coast can cost tens of thousands of dollars. What does it cost if senior management misses one critical meeting though? What is the value of time if four executives at one company, each of whom makes over a million dollars a year, spend an extra 100 hours per person in the air each year instead of doing their jobs?

Another aspect to the math of private aircraft is that selling used planes is nearly impossible. As The Journal points out, there is such a flood of these planes hitting the market that resale value has gone through the floor.

Shareholders may want to see every last dime taken out of costs as the recession deepens and share prices fall, but as the old saying goes, "cheap gets expensive." Putting CEOs on long and often delayed airline flights hurts management efficiency even if its appears to help the bottom line.

Douglas A. McIntyre is an editor at 24/7 Wall St.

CEOs fly commercial, hurt productivity originally appeared on BloggingStocks on Tue, 30 Dec 2008 03:51:00 EST. Please see our terms for use of feeds.

Here is a roster of some of the fallen ones.

Jimmy Cayne Former CEO Bear Stearns - latest compensation $32.1 million. He led Bear Stearns for 15 years. He resigned last January. Bear Stearns was acquired by JPMorgan Chase (NYSE: JPM) for $10.00 a share. He and his wife purchased two luxury apartments at the Plaza.

Richard Fuld Former CEO Lehman Brothers - Latest compensation $34.4 million. Subpoenaed by federal investigators to determine if he misled investors at Lehman. Executives at Barclays Capital (NYSE: BCS) bought Lehman's US assets.

Kerry Killinger Former CEO WaMu - latest compensation $4.5 million. He became CEO in 1990 and built WaMU into one of the largest US mortgage writers. He offered sub prime mortgages which led to WaMU's rapid growth. He was ousted in September when WaMU was sold to JPMorgan.

Continue reading In 2008 they all fell down. Who are they?

In 2008 they all fell down. Who are they? originally appeared on BloggingStocks on Fri, 26 Dec 2008 14:00:00 EST. Please see our terms for use of feeds.

Continue reading 100 CEOs call for about $500 billion in fiscal stimulus

100 CEOs call for about $500 billion in fiscal stimulus originally appeared on BloggingStocks on Wed, 19 Nov 2008 17:53:00 EST. Please see our terms for use of feeds.

Many analysts have suggested stocks that could benefit from President Obama's policies. But would it be better to find CEOs who lead people in a manner that's similar to his approach? If you believe that the president sets the tone for the rest of the country, the answer may be yes. Under a CEO who thinks of himself as the decider, investing in companies whose CEOs who lead by command-and-control might make sense.

But Obama's approach is different -- he inspires people, surrounds himself with the best, and listens to them before forming his opinions. And rather than trying to divide the world between those who agree and oppose him, Obama tries to find the center of an issue to bring along as many people as he can. I wonder whether this more self-effacing approach to leadership comes from the Midwest where patting yourself on the back is considered poor form.

Are there any CEOs who follow this approach to leadership? I can think of one -- but there may be others. James McNerney, Boeing (NYSE: BA) CEO, seems to follow the Obama approach to leadership in many respects. While McNerney may not have Obama's eloquence (and very few do), he does have an ability to put people at ease and encourages them to debate issues and find solutions to their problems instead of waiting for him to give them the answer.

Continue reading Should you invest in CEOs who lead like President Obama?

Should you invest in CEOs who lead like President Obama? originally appeared on BloggingStocks on Sun, 09 Nov 2008 13:40:00 EST. Please see our terms for use of feeds.

The SEC is trying to stop Wall Street players from spreading rumors that sink stocks, as I posted yesterday. The reason such rumors matter is because there are many companies that are unable to defend themselves from rumors. Bear Stearns comes to mind as an example. I think if someone tried to spread a rumor that Goldman Sachs Group (NYSE: GS) or Berkshire Hathaway Inc. (NYSE: BRK.A) were heading for bankruptcy, the rumor would not get foo far.

But if a company lacks such a strong reputation, its CEO needs to be prepared to respond effectively to such rumors. And I really don't think it should be difficult to mount an effective defense. In my mind, the CEO should be able to provide credible answers to two questions:

• Cash flow. How large are the company's short- and medium-term liabilities and how many times do the market value of its short- and medium-term assets cover these liabilities?
• Debt default. What are the company's key loan terms and what specific assurance can the company provide that it is in compliance with these terms?

Continue reading How public company CEOs can squash false rumors

How public company CEOs can squash false rumors originally appeared on BloggingStocks on Tue, 15 Jul 2008 16:29:00 EST. Please see our terms for use of feeds.

Real estate slump didn't hit ex-Citigroup CEO Chuck Prince originally appeared on BloggingStocks on Mon, 21 Jan 2008 13:50:00 EST. Please see our terms for use of feeds.

• John Thompson of Symantec (NASDAQ: SYMC): This was a tough one, because I like him personally as a CEO and thought the diversification strategy was not as far out as Wall Street did. But Wall Street talks, here's the full piece on it.
• Hector Ruiz of Advanced Micro Devices (NYSE: AMD): This was simple, and we think even though he wants to stay that he won't be allowed to. Intel Corp. (NASDAQ:INTC) isn't just winning, it's running away with the processor prize. Here's the full data why he's toast, even if he won't admit it.

Continue reading Tech CEOs who need to go in 2008 (SYMC, AMD, BBND, CC, ALU, INTC)

Tech CEOs who need to go in 2008 (SYMC, AMD, BBND, CC, ALU, INTC) originally appeared on BloggingStocks on Thu, 13 Dec 2007 16:38:00 EST. Please see our terms for use of feeds.

This post was part of AOL Money & Finance's Best & Worst of 2007. Voting has now closed and, in a close race, readers have chosen Chuck Prince as the best CEO departure of the year. Let us know in the comments if you are pleased with this result.

When looking back at 2007, there were some larger-than-life CEO departures that semi-rocked the business world and brought some investors to the realization of over-the-top compensation yet again. Let's look at a few and then you can decide the winner. Sound good?

First up comes Bill Ford, Jr., from the automotive industry. Under Ford's leadership, Ford Motor Co. (NYSE: F) lost its way in terms of correctly forecasting what kind of vehicles customers actually wanted, in addition to becoming horribly leveraged. As soon as gas prices began shooting up, Ford Motor started spiraling down. Long-time Boeing Co. (NYSE: BA) executive Alan Mulally was brought in to replace Ford as the automaker's CEO just in the nick of time. Ford Motor's expected profitability date with Ford now gone: 2009.

How about Bob Nardelli, formerly CEO of Home Depot Inc. (NYSE: HD)? Nardelli made global headlines by making tens of millions while leading Home Depot shares to the basement and apparently making all kinds of bad decisions that finally led to his ouster this year. On top of that, his severance package made a Brad Pitt paycheck seem like pennies, and Home Depot shareholders paid for it. Did Home Depot stakeholders get a voice in this corporate travesty? A small one, perhaps.

Continue reading Best & Worst of 2007: Best CEO departure of 2007

Best & Worst of 2007: Best CEO departure of 2007 originally appeared on BloggingStocks on Thu, 29 Nov 2007 06:10:00 EST. Please see our terms for use of feeds.

Hygenie.com

• Microsoft (NASDAQ: MSFT) CEO Steve Ballmer -- Check out the picture of him sweating: Yuck!
• Russian billionaire Boris Berezovsky -- Face itcher!
• Virgin Group Chairman Richard Branson -- Streaker!
  

Continue reading Dirty business: Hygenie's list of the ten least sanitary CEOs

Dirty business: Hygenie's list of the ten least sanitary CEOs originally appeared on BloggingStocks on Mon, 12 Nov 2007 16:10:00 EST. Please see our terms for use of feeds.

Are boards becoming too quick to fire CEOs? originally appeared on BloggingStocks on Mon, 22 Oct 2007 19:00:00 EST. Please see our terms for use of feeds.

Economists growing more optimistic, CEOs pessimistic originally appeared on BloggingStocks on Thu, 11 Oct 2007 16:20:00 EST. Please see our terms for use of feeds.

What other former CEOs besides Carly Fiorina are joining Fox? originally appeared on BloggingStocks on Thu, 11 Oct 2007 09:30:00 EST. Please see our terms for use of feeds.

The Wall Street Journal [subscription required] details some fascinating research on how activities in a CEO's private life affect his or her company's profitability or stock price. The most useful idea here is that investors can use Google Inc.'s (NASDAQ: GOOG) Google Earth to spot short selling opportunities.

One aspect of this research that did not surprise me was that if the CEO builds a huge home -- greater than 10,000 square feet -- the company's stock price declines. I have long noticed that when a company builds a huge new corporate headquarters building or names a sports stadium after itself, trouble often follows for investors in its stock. The reason for this link? The CEO is more focused on personal glorification than on expanding profits.

But what I found surprising and intrusive was that deaths in a CEO's family influence company profitability, according to a study by Danish researchers of 75,000 companies there. Here's the post-event change in return on assets of various deaths in a CEO's family:

Continue reading Using Google (GOOG) Earth to profit from the CEO edifice complex

Using Google (GOOG) Earth to profit from the CEO edifice complex originally appeared on BloggingStocks on Wed, 05 Sep 2007 09:05:00 EST. Please see our terms for use of feeds.

There are two kinds of CEOs: innovators -- who come up with growth ideas -- and janitors -- who cut costs and instill discipline. There are times when it's best to invest in an innovator, and others when a janitor generates superior shareholder returns. What does this mean for stocks? Potential buys include Boeing Co. (NYSE: BA), Google, Inc. (NASDAQ: GOOG), and American International Group, Inc. (NYSE: AIG), and potential holds include Hewlett-Packard Co. (NASDAQ: HPQ), Microsoft Corp. (NASDAQ: MSFT), and Apple, Inc. (NASDAQ: AAPL).

This thought came to mind after reading an excerpt from the Wall Street Journal's Alan Murray's new book -- Revolt in the Boardroom: The New Rules of Power in Corporate America. It's a measure of his clout that he got the front page [subscription required] -- albeit of the Saturday edition. Murray's argument is that "boring" CEOs are now on the rise "in the wake of ... Enron" (a hackneyed expression that should be banned from the journalistic lexicon).

Following journalistic convention, Murray extrapolates a trend from three cases. He argues that boards have appointed "boring" CEOs -- I call them janitors since they are the executive equivalent of a clean up crew that comes in after a rock concert -- to avoid their predecessors' scandals. He cites the "boring" examples of Jim McNerney at Boeing, Martin Sullivan at AIG, and Mark Hurd at HP. They can boost the stock price for a while by cutting excess cost and instilling process discipline.

But they often fall down when it comes to generating revenue growth ideas. This is where investors can benefit from an innovator CEO -- the archetype of which is Apple's Steve Jobs. For investors there are two problems with such innovators:

Continue reading What kind of CEO should you invest in -- innovator or janitor?

What kind of CEO should you invest in -- innovator or janitor? originally appeared on BloggingStocks on Sat, 05 May 2007 11:10:00 EST. Please see our terms for use of feeds.

Ed Whitacre, the current AT&T (NYSE: T) CEO, has been running one or more of the Bells for a long time. He ran SBC since 1990 when it mergered with AT&T. In June, he hits retirement age. To no one's surprise, his No.2, Randall Stephenson, will move up to Chairman & CEO. Stephenson was chief operating officer at SBC before the merger. He was both controller and CFO before he took over operations.

Whitacre goes out on top. He engineered the merger between SBC and AT&T, and then took over BellSouth again. He has come close to re-assembling the original AT&T. He leaves with a $158.5 million retirement package.

Over the last two years, AT&T's share price is up almost 70%. The merger with BellSouth has gone well. AT&T's first-quarter 2007 reported net income was $2.8 billion, up from $1.4 billion in the first quarter of 2006, and reported earnings per diluted share were $0.45, versus $0.37 in the year-earlier quarter. The company's wireless operations, renamed AT&T Wireless, did particularly well.

One question will dog Whitacre's legacy. It is whether he moved quickly enough into fiber-based high speed internet to take TV and broadband customers away from cable companies. Cable has been converting large numbers of telecom voice customers to VoIP.

But, that is Stephenson's problem now.

Douglas A. McIntyre is a partner at 24/7 Wall St.

AT&T gets a new captain originally appeared on BloggingStocks on Fri, 27 Apr 2007 11:45:00 EST. Please see our terms for use of feeds.