Management Turnover as Change Agent

Tuesday, January 6, 2015

Annual and Quarterly Executive Turnover Point to Continued Economic Growth

Who would have thought, but for the first time in many years, it's the American Economy that is getting all the positive attention.  Some of the positive change is related to the precipitous fall in oil prices but more of it relates to improved ecoonomic policies and the ability of the American economy to adapt.  Liberum Research has been predicting positive news for the American Economy over the last two years.  Most of our predictions have been primarily based on the overall growth trend in executive turnover and the slowly improving employment situation. The latest executive turnover numbers, while not fabulous, continue to support positive growth for the American Economy.  The economy is still faced with serious employment problems, particularly for the long term unemployed, and a continuing drag in salary increases for the majority of the working population.  Increases in executive turnover, which Liberum Research sees as an important economic indicator, have remained on a constant positive trend.  Liberum expects executive turnover to continue in a positive direction as we move through the new year.

Liberum has put together below, a seven year quarterly breakdown of executive turnover totals for CEOs, CFOs and C-level executives covering North America. Most of the below quarterly numbers showed continuing declines until the second quarter of 2011.  At that point, the numbers began to reverse themselves.  Turnover at the executive levels of corporate America began to grow while not consistently and that trend has continued and is expected to be about the same for all of 2015.

Anyone investing in the market must pay special attention to executive turnover both at the top and the middle executive ranks.  Failure to do so, will result in lost opportunities or worse. To take advantage of executive changes, get a free trial to Liberum's Online Management Change Database.  Just call Richard at 212-988-5497 or send an email to richard@twst.com requesting your free trial.  Within a day of your trial, you will have access to over 200,000 data points from which you can generate ideas and daily information on who is changing jobs at the top and where they are going.
Below is a simple table outlining the quarterly and annual turnover totals as registered through Liberum Research's Management Change Database for 2008 through 2014 for CEOs, CFOs and overall C-level turnover.  

 Total CEO Turnover Comparisons   
                        
 Year 2008    2009 2010 2011 2012 2013 2014   
1st Quarter 745491 388346 680 583 500 
 2nd Quarter596 380321 581665 619 527
 3rd Quarter533409298713 636 627 557
 4th Quarter461430328697 673 636651
 Annual Total2,3351,7101,3352,337 2,6542,465 2,235





 Total CFO Turnover Comparisons 
                 
 Year 2008    2009 2010 2011 2012 2013 2014   
1st Quarter 593 332 296 280 640 495  468
 2nd Quarter551 326 273 404612 557   595 
 3rd Quarter438 279 256629 598582  550
 4th Quarter364 313  258   476569562 586 
 Annual Total1,9461,250 1,0831,789 2,4192,196 2,199




 Total C-level Turnover Comparisons
 Year 2008    2009 2010 2011 2012 2013  2014   
1st Quarter 6735 4061 34532863 5442 3971 4083 
 2nd Quarter7430 5051 3199 404150364102 4117 
 3rd Quarter4865 3690 25225349 423541233950 
 4th Quarter4277 3439  2381   4596 419741964200 
 Annual Total23,307 16,241 11,55516,849 18,91016,392 16,350




The latest monthly comparison figures with regard to executive turnover for December 2014 as compared with those of December 2013 and December 2014 and November 2014 are as follows:  
  • CEO turnover for December 2014 showed no change from that of December 2013, CFO turnover increased 2%, C-level turnover increased just 1% and Board of Director turnover declined 4%.  
  • The the month to month change from November 2014 to December 2014 overall was somewhat more positive. CEO turnover increased 7% for CEOs, declined 12% for CFOs, increased 10% with regard to C-level changes and increased 35% for Board of Director changes.  
In the below report, Liberum has focused on 52 CEO changes of special significance for the month of December out of a total of 226. We have also put together the overall turnover figures for the month of December 2014.  The below information is just illustrative of how investors could view executive turnover and its possible relationship with a company's performance. The same could be done for COOs, Presidents, Chairmans, etc., just through Liberum's Management Change Database.

DATE       COMPANY   TICKER    EXCHANGE   MARKET CAP $ MILLIONS
12-01 Bison Instruments  BSOI  OTC  67
12-01 Idera Pharmaceuti  IDRA  NASDAQ  349
12-01 Legg Mason, Inc.  LM  NYSE  6292
12-01 Millcom Swed Dep  MICCF  8500
12-01 Pope Resources  POPE  NASDAQ  280
12-01 Pulse Electronics  PULS  OTC
12-02 Allied Minds  ALM   LONDON  7
12-02 Loews Corporation  L  NYSE  15433
12-03 Digi International Inc.  DGII  NASDAQ  185
12-04 Carbonite, Inc.  CARB  NASDAQ  383
12-04 New Jersey Mining  NJMC  NYSE  7
12-05 Arctic Cat, Inc.  ACAT  NASDAQ  430
12-05 Areva - Societe  ARVCF  OTC   4531
12-05 Bay Bancorp, Inc.  BYBK  NASDAQ  48
12-05 Francesca's Holdi  FRAN  NASDAQ  638
12-05 South Jersey Industries  SJI  NYSE  1968
12-05 Stanley Black & Decker, Inc.  SWK  NYSE  14970
12-05 Warren Resources, Inc.  WRES  NASDAQ  122
12-08 Innocoll Ag  INNL  NASDAQ  137
12-09 Abercrombie & Fitch Co.  ANF  NYSE  1961
12-10 G. Willi-Food International Limited  WILC  NASDAQ 93
12-10 Layne Christensen Company  LAYN  NASDAQ  157
12-10 Seaworld Entertai  SEAS  NYSE
12-10 Walgreen Company  WAG  70595
12-11 C T I Group   CTIG  OTC  11
12-12 Midway Gold Corpo MDW  NYSE  124
12-15 Bob Evans Farms, Inc.  BOBE  NASDAQ 1243
12-15 Crocs, Inc.  CROX  NASDAQ 1050
12-15 Lyondellbasell In  LYB  NYSE 41055
12-15 Spark Networks plc (ADR)  LOV  NYSE 86
12-16 Medbook World Inc MBOO  OTC
12-16 Sms Management  SMSUF  OTC  194
12-17 American Apparel, Inc.  APP  NYSE  128
12-17 Ampco-Pittsburgh  AP  NYSE   180
12-17 Crimson Wine  CWGL  OTC  231
12-17 Hudsons Bay  HBAYF  TORONTO  3746
12-17 New Peoples Banks  NWPP  OTC  29
12-17 Par Petroleum Corporation  PARR  NYSE 589
12-18 Avix Technologies  AVIX  OTC  719
12-18 Sierra Bancorp  BSRR  NASDAQ  240
12-19 Blue Ridge Banksh  BRBS  OTC   20
12-19 Bonanza Gold Corp BNZA  OTC  4
12-19 Huntsworth  HNT  LONDON
12-19 SupportSoft, Inc.  SPPR  NASDAQ  11
12-19 Table Trac Inc  TBTC  OTC  4
12-19 Tesco Corp  TESO  NASDAQ  539
12-22 Orca Gold  CANWF  OTC  30
12-23 Comtech Telecomm. Corp  CMTL  NASDAQ  530
12-23 Echo Therapeutics  ECTE  NASDAQ  19
12-23 Redux Holdings In  RDXH  OTC  205
12-23 Supernova Energy  SPRN  OTC  2
12-24 Takata Corp Unsp  TKTDY  OTC  922

DECEMBER 2014 MANAGEMENT CHANGE STATISTICS
C-LEVEL MANAGEMENT CHANGE STATISTICS
GRAND TOTAL - 1457
TOP INDUSTRY SECTORS
> Drugs/Biotech 
- 148
> Energy  -119
> Banking - 97
DECEMBER 2014 CEO CHANGE STATISTICS
GRAND TOTAL - 226
TOP INDUSTRY SECTORS

> Energy - 14
> Drugs/Biotech - 12
> Banking -10
> Consumer Products - 10
> Metals/Mining - 10
DECEMBER 2014 CFO CHANGE STATISTICS
GRAND TOTAL - 185
TOP INDUSTRY SECTORS

> Drugs/Biotech - 17
> Metals/Mining - 13
> Computer - 10
DECEMBER 2014 BOARD OF DIRECTOR CHANGE STATISTICS
GRAND TOTAL - 517
TOP INDUSTRY SECTORS

> Drugs/Biotech - 68
> Energy - 49
> Banking - 33
Investors need to diligently monitor key management changes. Certain management changes should be viewed as a "special situation" that can have a direct and major impact on a company's performance and share price.
  • New CEOs know more than the market about the company.  Their decision to take the position contains information. Likewise the departing CEO. Likewise departing CFOs.
  • New CEOs will bring new skills and often-times a new direction.  This is normally significant, and worth analyzing.
Liberum Research, the independent research firm focused on corporate management change, has developed an online relational database designed to assist institutional investors develop special situation investment ideas related to executive management change. While special situation investing traditionally revolves around corporate restructuring, spin-offs and acquisitions, executive management changes, depending on the circumstances, can represent a short or long-term investment opportunity. 
Liberum's over ten year old database offers institutional investors the ability to examine an individual company, sector/s, group of companies, and/or geographic region/s/ locations via a metric of one's own choosing.  You can use the information individually or in combination with a number of other financial tools to develop unique investment ideas.  

ABOUT LIBERUM
The largest database of C-level executive change at public companies.  Frequently quoted in the financial press, Liberum helps investors monitor this important, continuous stream of investment events.  The data is also useful for investment bankers, private equity, executive search and consulting firms.  The data can be used in numerous ways. 


Wednesday, December 3, 2014

November Executive Turnover Remains Positive With Caveats

Liberum Research continues to see positive signs for increasing executive turnover which typically translates into growth for the economy.  Just as Liberum registered in the previous month of October, November has also shown positive signs for continued executive turnover but with a few caveats.  Unlike October, executive turnover totals were positive in the year to year November 2014 to the month of November 2014.  The same, however, was not completely the case when Liberum compared October 2014's executive turnover results with those of November 2014.  Liberum anticipates the U.S. Government's employment numbers scheduled for release at the end of this week, will not be as positive as those anticipated by most market analysts but will still be acceptable.  Liberum anticipates executive turnover will continue to grow as we move into the winter and the early spring which, if true, will bode well for the overall North American economies.  Earlier today, ADP released its November Employment Report.  The results while positive, were not near the expectations of most market analysts but does coincide with Liberum's latest figures.


Private sector employment increased by 208,000 jobs from October to November according to the November ADP National Employment Report®

"November continued to show solid job growth above 200,000,” said Carlos Rodriguez, president and chief executive officer of ADP. “Small businesses continued to drive job gains adding almost half the total for the month.”

Mark Zandi, chief economist of Moody’s Analytics, said, “Steady as she goes in the job market. Monthly job gains remain consistently over 200,000. At this pace the unemployment rate will drop by half a percentage point per annum. The tightening in the job market will soon prompt acceleration in wage growth.” 

As for Liberum's latest figures, all four key categories experienced increases in November 2014 over the same month of November 2013, however, Liberum registered more mixed results when November 2014's turnover figures were compared to the totals for the previous month of October.  
 
Liberum Comparison Breakdown of Key November Executive Turnover Figures

Below is a breakdown of Liberum's key executive category percentage changes for November 2014 compared with November a year earlier and the previous month of October 2014.   
 
November 2013 Compared to November 2014
  •  
    • For November 2014 increases in turnover occured in all four key categories.  CEO changes increased 5% from November a year earlier, CFO changes increased 23%, C-level changes increased 5%, and board of director changes increased 2%.  
October 2014 Compared to November 2014
  •  
    • The month to month changes in executive turnover, October 2014 to November 2014, however, were not nearly as positive.  CEO changes saw no change, CFO changes increased 10%, while C-level changes  and board of director changes declined 7% and 15% respectively.      
Below are the overall turnover totals for November 2014.  The information is just illustrative of how institutional investors could view executive turnover and its possible relationship with a company's performance.  Using Liberum's database could offer a totally new perspective on investment and is a potential way to come up with unique special situation opportunities.  Executive search firms on the other hand can use the information to generate new leads and new clients.   

Call now (212-988-5497) or email richard@twst.com and get a no obligation one week trial to Liberum's online management change database. Find out why Hedge Funds, Executive Search, Business Intelligence and Consulting firms all rely on Liberum's data.
 
KEY CEO CHANGES - NOVEMBER 2014
35 COMPANIES WITH CEO CHANGES WORTH RE-EXAMINING 
According to Liberum's Management Change Database, a total of 212 CEO related changes occurred during November 2014. Here are 35 from the time period that caught my eye.   By significant, I'm looking for situations where I think a particularly strong or weak choice has been made - given the apparent current state of the company - or where there is an interesting special situation. (Anyone using Liberum's database could do the same kind of analysis for other key titles, e.g., CFOs, COOs, CMOs Presidents, etc.)

DATE  COMPANY TICKER  EXCHANGE  MARKET CAP $ MILLIONS    
11-03 Cesca Therapeutics Inc   KOOL  NASDAQ  43
11-04 Lpath Inc  LPTN  NASDAQ  45
11-05 Acelrx Pharmaceut  ACRX  NASDAQ  244
11-05 Jive Software, In  JIVE  NASDAQ  461
11-06 Americn Transn Hl  ATHI  OTC  92
11-06 Financial Engines  FNGN  NASDAQ  1635
11-06 Fuelstream Inc  FLST  OTC  64
11-06 Goldspan Resource  GSPND   168
11-06 Osram Licht Ag  OSAGF  OTC  3668
11-10 Aaron's, Inc. Com  AAN  NYSE  1883
11-10 Bsd Medical Corpo  BSDM  NASDAQ  18
11-12 Northstar Hlthcr  NRTSF  OTC  63
11-12 Unitedhealth Group, Inc.  UNH  NYSE  91660
11-13 Alchemia Ltd  AEMAF  OTC  23
11-13 Calzada Ltd  CALZF  OTC  31
11-13 Willis Group Holdings Limited  WSH  NYSE  7377
11-14 Arctic Cat, Inc. ACAT  NASDAQ  432
11-14 Ashland Inc.  ASH  NYSE  7992
11-14 Biocorrx Inc  BICX  OTC  15
11-14 Carpenter Technology Corporation  CRS  NYSE  2742
11-17 Genuine Parts Company  GPC  NYSE  15307
11-17 Kennametal Inc.  KMT  NYSE  3205
11-17 Servicesource Int  SREV  NASDAQ  356
11-18 Concurrent Computer Corp  CCUR  NASDAQ  60
11-19 Air Industries Gr  AIRI  NYSE  74
11-20 First Titan Corp  FTTN  OTC  870
11-20 Hertz Global Holdings, Inc.  HTZ  NYSE  10185
11-20 Rhino Resource Pa  RNO  NYSE  84
11-21 Evertec, Inc. Com  EVTC  NYSE  1737
11-21 Intrawest Resorts  SNOW  NYSE  478
11-21 Sotheby's BID  NYSE  2908 
11-24 Banco Santander S  BCDRF  OTC  108000
11-24 Infoblox Inc. Com  BLOX  NYSE   980
11-24 Jacobs Engineering Group Inc.  JEC  NYSE  6321
11-26 Highvista Gold In  HVV  CVE  399
 
NOVEMBER 2014 MANAGEMENT CHANGE STATISTICS
C-LEVEL MANAGEMENT CHANGE STATISTICS
GRAND TOTAL - 1323
TOP INDUSTRY SECTORS
> Drugs/Biotech - 158> Banking - 76
> Energy - 72





NOVEMBER 2014 CEO CHANGE STATISTICS
GRAND TOTAL - 212
TOP INDUSTRY SECTORS
> Drugs/Biotech - 19
> Metals/Mining - 13> Banking- 11















NOVEMBER 2014 CFO CHANGE STATISTICS
GRAND TOTAL - 210
TOP INDUSTRY SECTORS
> Drugs/Biotech - 19
> Metals/Mining - 16
> Food - 10














NOVEMBER 2014 BOARD OF DIRECTOR CHANGE STATISTICS
GRAND TOTAL - 382
TOP INDUSTRY SECTORS
> Drugs/Biotech - 56
> Energy - 28
> Banking - 21















Investors need to diligently monitor key management changes. Certain management changes should be viewed as a "special situation" that can have a direct and major impact on a company's performance and share price.
  • New CEOs know more than the market about the company.  Their decision to take the position contains information.  Likewise the departing CEO. 
  • Likewise departing CFOs New CEOs will bring new skills and often-times a new direction.  This is normally significant, and worth analyzing.
Liberum Research, the independent research firm focused on corporate management change, has developed an online relational database designed to assist institutional investors develop special situation investment ideas related to executive management change. While special situation investing traditionally revolves around corporate restructuring, spin-offs and acquisitions, executive management changes, depending on the circumstances, can represent a short or long-term investment opportunity. 

Liberum's ten year old database offers institutional investors the ability to examine: 
  • an individual company, 
  • sector/s, 
  • corporate titles
  • group of companies, 
  • and/or geographic region/s/ locations via a metric of one's own choosing.  
  • you can use the information individually or in combination with a number of other financial tools to develop unique investment ideas. 

Thursday, November 6, 2014

Executive Turnover Jumps As Do Private Employment Rolls - Economy Humming?

Liberum Research has been predicting for the last number of months increased executive turnover at public companies.  While turnover has not lived up to Liberum's predictions, October's latest figures have moved in a far more positive direction and along the path Liberum has been forecasting.  October's growth in executive turnover coincides with ADP's latest Employment Report released November 5, that showed an unexpected increase in private employment.  Liberum expects the same will be true with the U.S. Labor Department's (BLS) Employment figures scheduled for release at the end of this week.
According to today's ADP October Employment Report:

Private-sector employment increased by 230,000 from September to October, on a seasonally adjusted basis.

Mark Zandi, chief economist of Moody’s Analytics, said, “The job market is steadily picking up pace. Job growth is strong and broad-based across industries and company sizes. At this pace of job growth unemployment and underemployment is quickly declining. The job market will soon be tight enough to support a meaningful acceleration in wage growth.”

As for Liberum's latest figures, three out four key categories experienced declines in October 2014 over the same month of October 2013, however, Liberum saw consistently large increases in all four categories when October 2014's turnover figures were compared to the same totals for the previous month of September 2014.  Liberum expects executive turnover will continue to grow as we move into the later Fall and early Winter months.  If turnover growth continues to grow, it will represent another positive sign for North America's economic recovery.   

Liberum Comparison Breakdown of Key October Executive Turnover Figures

Below is a breakdown of Liberum's key executive category percentage changes for October 2014 compared with October a year earlier and the previous month of September 2014.   
October 2013 Compared to October 2014 

For October 2014 declines in turnover occured in three key categories.  CFO changes declined 9% from  October a year earlier, C-level changes declined 4%, and board of director changes declined 12%.  CEO changes on the other hand, increased a mere 1%.

September 2014 Compared to October 2014 

The month to month changes in executive turnover, September 2014 to October 2014, however, showed significant increases in all four key categories.  CEO changes increased 22%, CFO changes increased 4%, C-level changes increased 16%, and board of director changes increased 25%.    
  
Below are the overall turnover totals for October 2014.  The information is just illustrative of how institutional investors could view executive turnover and its possible relationship with a company's performance.  

KEY CEO CHANGES - OCTOBER 2014
33 COMPANIES WITH CEO CHANGES WORTH RE-EXAMINING 
According to Liberum's Management Change Database, a total of 213 CEO related changes occurred during October 2014. Here are 33 from the time period that caught my eye.   By significant, I'm looking for situations where I think a particularly strong or weak choice has been made - given the apparent current state of the company - or where there is an interesting special situation. (Anyone using Liberum's database could do the same kind of analysis for other key titles, e.g., CFOs, COOs, CMOs Presidents, etc.)

DATE  COMPANY TICKER  EXCHANGE  MARKET CAP $ MILLIONS    
10-01 Activecare Inc  ACAR $10
10-01 Centrus Energy Co  LEU  $38
10-06 Unisys Corporation  UIS  OTC  $1044
10-07 Niko Res NKO  TORONTO  $85
10-07 Vonage Holdings Corp VG  NYSE   $667
10-08 Purespectrum, Inc  PSRU  OTC  $263
10-08 The Gap Inc.  GPS  NYSE  $15946
10-09 Advanced Micro Devices, Inc.  AMD  NYSE  $2287
10-13 Adcare Health Sys  ADK  NYSE  $76
10-13 J.C. Penney Co., Inc.  JCP  NYSE  $2242
10-14 Computer Task Group, Inc  CTG  NASDAQ  $198
10-14 Dex Media, Inc.  DXM  NSADQ  $134
10-14 Quiksilver, Inc.  ZQK  NYSE  $304
10-15 Appiphany Technol  APHD  OTC  $93
10-15 Bg Group BG  LONDON  $346
10-15 Innovative Softwa  INIV  OTC  $22
10-15 Midway Gold Corpo  MDW  NYSE  $182
10-15 Navidea Biopharma  NAVB  NYSE  $200
10-15 Statoil ASA (ADR)  STO  NYSE  $70382
10-16 Darden Restaurants, Inc.  DRI  NYSE  $6536
10-17 Richmont Mines Inc. (USA)  RIC  NYSE  $120
10-21 C T I Group (Hold  CTIG  OTC  $10
10-21 First Colombia Go  FCGD  OTC  $16
10-21 SeaChange Intl  SEAC  NASDAQ  $211
10-22 Golden Predator M  GPY CVE  $3
10-24 Thales  HO  France  $7738
10-27 Cerulean Pharma I  CERU  NASDAQ  $83
10-28 22nd Cent XXII  NYSE  $129
10-29 sanofi-aventis (ADR)  SNY  NYSE  $118900
10-29 Shanda Games Limi  GAME  NASDAQ  $1740
10-30 F5 Networks, Inc.  FFIV  NASDAQ  $9077
10-31 Carnival Corporation  CCL  NYSE  $31197
10-31 Oragenics Inc  OGEN  NYSE

OCTOBER 2014 MANAGEMENT CHANGE STATISTICS
C-LEVEL MANAGEMENT CHANGE STATISTICS
GRAND TOTAL - 1420
TOP INDUSTRY SECTORS
> Drugs/Biotech - 173
> Banking - 107
> Energy - 106



















OCTOBER 2014 CEO CHANGE STATISTICS
GRAND TOTAL - 213
TOP INDUSTRY SECTORS
> Drugs/Biotech - 21
> Energy- 21> Retail - 14
> Metals/Mining - 13







OCTOBER 2014 CFO CHANGE STATISTICS
GRAND TOTAL - 191
TOP INDUSTRY SECTORS
> Drugs/Biotech - 21
> Energy - 20
> Real Estate - 15
> Software - 15





OCTOBER 2014 BOARD OF DIRECTOR CHANGE STATISTICS
GRAND TOTAL - 452
TOP INDUSTRY SECTORS
> Drugs/Biotech - 73
> Banking - 41
> Energy - 22



















Investors need to diligently monitor key management changes. Certain management changes should be viewed as a "special situation" that can have a direct and major impact on a company's performance and share price.
  • New CEOs know more than the market about the company.  Their decision to take the position contains information.  Likewise the departing CEO. 
  • Likewise departing CFOs New CEOs will bring new skills and often-times a new direction.  This is normally significant, and worth analyzing.
Liberum Research, the independent research firm focused on corporate management change, has developed an online relational database designed to assist institutional investors develop special situation investment ideas related to executive management change. While special situation investing traditionally revolves around corporate restructuring, spin-offs and acquisitions, executive management changes, depending on the circumstances, can represent a short or long-term investment opportunity. 


ABOUT LIBERUM

The largest database of C-level executive change at public companies.  Frequently quoted in the financial press, Liberum helps investors monitor this important, continuous stream of investment events.  The data is also useful for investment bankers, private equity, executive search and consulting firms.  The data can be used in numerous ways. Daily customizable alerts, a searchable database, custom reports, xml feeds.   Liberum clients get the data the way they can best exploit it.  Get a short trial call 212-988-5497 or email richard@twst.com.