CEO Turnover Falls in October

By the end of October, 1,028 chief executive officer changes had been announced, according to a CEO turnover report released by global outplacement firm Challenger Gray & Christmas Inc.

This year’s 10-month total is the lowest since 2004, when CEO changes totaled 561 by the end of October.

Last October, 89 CEOs left their positions, 15 percent lower than the 105 CEOs who stepped down in September and 29 percent lower than the 125 CEO departures in October 2008.

The financial industry suffered the most CEO losses in October when 19 top executives left their positions. Financial firms have had about 106 CEO departures this year.

“The financial industry is still incredibly volatile, as both October and September saw major announcements from leading companies including JP Morgan Chase, Bank of America and last month’s bankruptcy of CIT Group, which led to the exit of CEO Jeffrey Peek,” said John A. Challenger, CEO of Challenger Gray & Christmas.

Still, the health care sector has been hit the hardest. In October, the health care sector saw eight CEO departures, bringing the total number of CEO departures this year to 159.

The energy sector is one of the few industries to have seen CEO turnover increase from last year’s levels. Energy sector CEO changes have increased to 47 from 32 at this point last year.

“Some of the change may be coming from companies seeking new leadership to address the current administration’s push to increase fuel efficiency and the use of alternative energy sources,” said Challenger.