C-suite Churn Continues

Executive turnover in November was the highest for any month this year.
Stephen TaubDecember 13, 2005

The revolving door in the executive suite revolved a little faster last month.

Management turnover in November was the highest for any month this year, according to Liberum Research, which keeps score of high-level changes at public companies.

Indeed, November marked the sixth consecutive month of increased changes in position — arrivals, departures, internal moves — among chief executive officers, chief financial officers, directors, executive vice presidents, and vice presidents. The upward trend is holding true across nearly all industries, Liberum reported.

Of November’s 2,209 management changes, 259 were by CEOs. A total of 198 CFOs changed jobs — a big jump from October’s 164.

Of the CFO changes last month, 18 were in the energy sector, 16 each in the drugs/biotech and telecom sectors, 14 in retail, and 12 each in banking and manufacturing.

Liberum pointed out that investors frequently weigh the potential for management turnover as part of their investment strategy. Indeed, on Tuesday shares of Diebold surged more than 5 percent after the maker of teller machines announced that chairman and chief executive officer Walden W. O’Dell resigned “for personal reasons.”