Turnover among the nation’s CEOs jumped 10 percent in the first quarter, consulting firm Challenger, Gray & Christmas Inc. said in a report released today.
Most of the 340 CEOS who left their posts so far this year either resigned or retired. Three left because of scandal or pressure from the board, according to the Challenger report.
The number of new faces taking over in corporate America could increase as the economy improves, the report says.
Challenger, Gray CEO John Challenger offered this insight:
“As the recovery takes hold, boards are likely to become increasingly impatient with leaders who fail to achieve results. … Companies want top executives that will maximize opportunities in the recovery. Each missed opportunity is a check against that executive. We are also entering a period of increased retirements, which may be resulting from CEOs wanting to get out from pressure of recovery expectations. It could also be that we are starting to see the impact of the aging baby boomers on the ranks of CEOs,” said Challenger.
Regardless of a CEO’s age, it looks like a growing number of boards are demanding performance. In other words, CEOs who aren’t bringing home profits are in trouble.
Should your company’s CEO be looking for a new job?