Management Turnover as Change Agent

Monday, April 7, 2014

Good News - Executive Turnover Begins to Grow

Executive turnover is finally beginning to show signs of growth again, a positive sign for the North American economy.  The last number of months executive turnover was rather slow in comparison to a year earlier but we are beginning to see signs of a slight growth in turnover among the executive ranks.  The increase in executive turnover seems to correlate with the latest more positive news regarding job growth in the Amercican economy.  Earlier on Friday morning April 4, the U.S. Department of Labor Bureau of Labor Statistics (BLS) announced  March employment Report and as expected the numbers were reasonably positive.  According to the BLS Report,

Total nonfarm payroll employment rose by 192,000 in March, and the unemployment rate
was unchanged at 6.7 percent, the U.S. Bureau of Labor Statistics reported today.
Employment grew in professional and business services, in health care, and in mining
and logging.

Earlier in the same week ADP released it latest Employment Report and the job growth numbers were greater than anticipated. According to the ADP Employment Report released April 2,

Private-sector employment increased by 191,000 from February to March, on a seasonally adjusted basis.


Highlights

  •  
    • Small businesses (1-49 employees) +72,000
    • Medium businesses (50-499 employees) +52,000
    • Large businesses (500 or more employees) +67,000
 

Mark Zandi, chief economist of Moody’s Analytics, said, "The job market is coming out from its 
deep winter slumber. Job gains are consistent with the pace prior to the brutal winter. The gains 
are broad based across industries and business size classes. Even better numbers are likely in 
coming months as the weather warms.

The American economy appears to have turned the corner but is still far from out of the woods.  With winter beginning to fade the economy seems to be percolating.  Unemployment continues to slowly decline and job growth is starting to show real incremental improvement.  Top executives in both small and large firms also find themselves in a similar situation.  Opportunities are growing for top executives and at the same time underperforming firms are now more likely to change deck chairs as the overall economy shows improved signs of life.  Liberum Research expects to see increased turnover in the executive ranks as we move through the Spring and into the Summer.  
 
Liberum has put together below a six plus 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 this point, the numbers began to reverse themselves.  Turnover at the executive levels of corporate America began to grow but not consistently.  
 
Below is a simple table outlining the quarterly turnover totals as registered through Liberum Research's Management Change Database for 2008 through the first quarter of 2014 for CEO, CFO 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  
 3rd Quarter533409298713 636 627 
 4th Quarter461430328697 673 636 
 Annual Total2,3351,7101,3352,337 2,6542,465 500 
 
 
 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  
 3rd Quarter438 279 256629 598582  
 4th Quarter364 313  258   476569562  
 Annual Total1,9461,250 1,0831,789 2,4192196 468 
 
 
 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  
 3rd Quarter4865 3690 25225349 42354123 
 4th Quarter4277 3439  2381   4596 41974196 
 Annual Total23,307 16,241 11,55516,849 18,91016,392 4,083 
 

As you can see from the quarterly and annual executive turnover totals in the above chart, North American public companies are operating at a more consistent level with regard to turnover.   The same is true when viewed from a brief monthly perspective. March 2014's executive turnover totals remained reasonably high in the key categories.  Liberum anticipates this trend will continue as we move through the Spring and Summer months.  

The latest monthly comparison figures with regard to executive turnover for March 2014 with those of March 2013 and February 2014 and March 2014 are as follows:  
  • CEO turnover for March 2014 declined 7% from that of March 2013, whereas CFO, C-level and Board of Director turnover all increased 22%, 9% and 9%, respectively.  
  • The the month to month change from February 2014 to March 2014 showed a small decline of 2% for CEOs, an increase of 13% for CFOs and an increase of 6% with regard to C-level changes and an increase of 16% for Board of Director changes.  Overall these totals remain positive signs for the economy.    
In the below report, Liberum has focused on fifty seven CEO changes of special significance for the month of March out of a total of only 164. We have also put together the overall turnover figures for the month of March 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 the Liberum database.

DATE       COMPANY   TICKER    EXCHANGE   MARKET CAP $ MILLIONS
03-03 I.DOBB. Systems, Inc.  IDSY  NASDAQ  69
03-03 meemee Media Inc.  MEME  OTN  16
03-03 Vansen Pharma Inc.  VNSN  112
03-03 Xylem Inc. Common  XYL  NYSE
03-04 Oiltanking Partne  OILT  NYSE  2893
03-04 QUALCOMM Incorporated  QCOM  NASDAQ  129900
03-05 Comscore, Inc. SCOR  NASDAQ  1074  
03-05 Stallergenes  GENP  FRANCE EPA
03-05 Viking Minerals I  VKML  OTN
03-05 Wyndham Worldwide  WYN  NYSE
03-06 Vedanta Resources  VED.L  23
03-07 Canexus Corp  CXUSF  OTN  659
03-07 Plandel Resources  PLDX  56
03-10 Astika Holdings ASKH  OBB  8
03-10 Kresta Fpo  KRS  ASX  25
03-11 Synacor, Inc.  SYNC  NASDAQ  74
03-11 The Bon-Ton Stores, Inc.  BONT  NASDAQ  207
03-12 Advanced Content  ADCS  OTN
03-12 Akers Biosciences  AKER  NASDAQ  11
03-12 Covisint Corporation  COVS  NASDAQ  292
03-12 Eastman Kodak Company  EK  
03-12 Semgroup Corporat  SEMG  NYSE  2767
03-13 Apple Rush Co  APRU  OTN  5
03-13 Rotoblock Corp  RTBC  OTN  415
03-14 Business Cont Sol  BUCS  OTN  4
03-14 Centor Inc  CNTO  OTN  8
03-14 Chembio Diagnosti  CEMI  NASDAQ  32
03-14 Crumbs Bake Shop  CRMB  NASDAQ  8
03-14 Nokia Corporation (ADR)   NOK  NYSE  28214
03-14 SupportSoft, Inc.  SPRT  NASDAQ  151
03-14 Us Dataworks Inc  UDWK  OTN  2
03-17 Digital Realty Trust, Inc.  DLR  NYSE  6665
03-17 First Titan Corp  FTTN  OBB  5
03-17 Wayne Savings Bancshares, Inc  WAYN  NASDAQ  33
03-18 Nam Tai Electronics, Inc.  NTE  NYSE  271
03-18 Schmolz + Bicken  SSN  Germany
03-18 United Community Financial Corp UCFC  NASDAQ  197
03-19 Equity One, Inc.  EQY  NYSE  2637
03-20 Contravir Pharmac  CTRV  OBB  52
03-20 General Cable Corporation  BGC  NYSE  1376
03-20 Symantec Corporation  SYMC  NASDAQ  12923
03-20 Synta Pharmaceuticals Corp.  SNTA  NASDAQ  393
03-21 3d Eye Solutions,  TDEY  OTN  42
03-21 Pbs Holding, Inc.  PBHG  OTN  409
03-21 Zumiez Inc.  ZUMZ  NASDAQ  738
03-24 Catalyst Copper C  CCY  CANADA  836
03-25 Affiliated Managers Group, Inc.  AMG  NYSE  9873
03-25 Cantex Energycorp  CTXE  OTN  344
03-25 Double Eagle Petroleum Co.  DBLE  32
03-25 Gordmans Stores GMAN  NASDAQ  101
03-25 Omnicare, Inc.  OCR  NYSE  5859
03-27 Superior Industries Int'l Inc.  SUP  NYSE  546
03-27 Westmoreland Coal Company  WLB  NASDAQ  433
03-28 Hudson Valley Hol  HVB  NYSE  377
03-31 CDI Corp.  CDI  NYSE  334
03-31 Elbit Medical Imaging Ltd  EMITF  NASDAQ  6
03-31 Zoned Properties  ZDPY  OTN  10

MARCH 2014 MANAGEMENT CHANGE STATISTICS
C-LEVEL MANAGEMENT CHANGE STATISTICS
GRAND TOTAL - 1355
TOP INDUSTRY SECTORS
> Drugs/Biotech 
- 144
> Banking  - 103
> Energy - 87
MARCH 2014 CEO CHANGE STATISTICS
GRAND TOTAL - 164
TOP INDUSTRY SECTORS

> Banking - 15
> Drugs/Biotech  - 15
> Metals/Mining - 14
MARCH 2014 CFO CHANGE STATISTICS
GRAND TOTAL - 166
TOP INDUSTRY SECTORS

> Drugs/Biotech - 17
> Metals/Mining - 14
> Banking - 12
MARCH 2014 BOARD OF DIRECTOR CHANGE STATISTICS
GRAND TOTAL - 497
TOP INDUSTRY SECTORS

> Drugs/Biotech - 72
> Energy - 38
> Banking - 32
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.

Thursday, February 13, 2014

January Executive Turnover Continues to Decline

Liberum’s executive turnover data for January 2014 continued to follow the same negative trend we have been measuring for the last few months.  CEO and CFO changes monitored by Liberum Research saw significant percentage declines from the same month a year earlier and from the previous month of December 2013.  The trend was somewhat more confusing when we examined the same changes with regard to overall C-level turnover (as defined by Liberum as all C-level executives down to VP level) and to turnover in the Board of directors. C-level turnover was static (virtually unchanged) for both periods and board of director turnover was actually up in both periods.  The January employment figures from U.S. Department of Labor that camne out Friday, February 7, 2014 were also somewhat disappointing as well.  According to the BLS Employment Report:
Total nonfarm payroll employment rose by 113,000 in January, and the unemployment ratewas little changed at 6.6 percent, the U.S. Bureau of Labor Statistics reported today (February 7th).  Employment grew in construction, manufacturing, wholesale trade, and mining. Total nonfarm payroll employment rose by 113,000 in January, and the unemployment ratewas little changed at 6.6 percent, the U.S. Bureau of Labor Statistics reported today.Employment grew in construction, manufacturing, wholesale trade, and mining.
Below is a breakdown of Liberum’s key executive category percentage changes for January 2014 compared with January a year earlier and the previous month of December 2013.
  • For January 2014 declines took place in two key categories.  CEO changes declined 16% from a year earlier, CFO changes declined 21%, whereas overall C-level (as defined by Liberum Research as board of directors, CEOs, CFOs down to corporate VPs) changes remained static and board of director changes increased 6% as compared with January 2013 totals.
  • The month to month change in executive turnover (December 2013 to January 2014) showed a slightly more negative picture with a decline of 25% for CEOs, a decline of 14% for CFOs, C-level changes remained static and board of director changes declined 19%, respectively.
Below are the overall turnover totals for January.  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 – JANUARY 2014
41 COMPANIES WITH CEO CHANGES WORTH RE-EXAMINING

According to Liberum’s Management Change Database, a total of 168 CEO related changes occurred during January 2014. Here are 41 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.

DATE   COMPANY TICKER EXCHANGE MARKET CAP $ MILLIONS
01-02 Ryl Dtch Shl Cl A  RDS-A  LSS  221900
01-03 Healthcare Corp HCCAE  OTN  16
01-06 Endeavor Ip, Inc.  ENIP  OBB  32
01-06 Mbac Fertilizer C  MBC  TORONTO  257
01-08 Barnes & Noble, Inc.  BKS  NYSE  887
01-08 Ideal Power Inc.  IPWR  NASDAQ  48
01-08 Ratos Ab Shs-B  RTOBF  OTN  2801
01-09 Hybrid Paytech World  FPOTF  OTN  22
01-09 Suntech Power Hld  STPFQ  OTN  100
01-09 Teva Pharm Ind Ltd (ADR)  TEVA  NYSE  35127
01-10 Amarin Corporation plc (ADR)  AMRN  NASDAQ  373
01-10 Experience Art &  EXAD  OBB  29
01-10 Guided Therapeuti  GTHP  OBB  36
01-13 Incyte Corporation  INCY  NASDAQ  9561
01-13 Red Lion Hotels Corp  RLH  NYSE  114
01-14 Breedit Corp  BRDT  OTN  8
01-14 Canarc Resource C  CRCUF  OBB  7
01-15 Iceweb Inc  IWEB  OBB  4
01-15 Local.com Corp. LOCM NASDAQ 36
01-15 Malvern Bancorp,  MLVF  NASDAQ  69
01-17 BlueLinx Holdings Inc.  BXC  NASDAQ  149
01-17 Independent Film  IFLM  OTN  697
01-17 Sunvault Energy,  SVLT  OBB  4
01-18 Silver Stream Min  AGSM  OTN  5
01-20 Deutsche Lufthans  DLAKY  OTN  11369
01-21 Oak Ridge Micro E  OKME  OBB  63
01-22 Advanced Cell Tec  ACTC  OTN  162
01-22 Liposcience, Inc.  LPDX  NASDAQ  63
01-23 American Eagle Outfitters  AEO  NYSE  2543
01-23 Greenhunter Energ  GRH  NYSE  40
01-23 Teradyne, Inc.  TER  NYSE  3625
01-24 Premier Alliance  PIMO  OTN  15
01-27 Astro-Med, Inc. ALOT  NASDAQ  98
01-27 Chunghwa Telecom Co., Ltd. (ADR)  CHT  NYSE  22869
01-27 E2v Technologies  E2V  LSS  3
01-27 Global Cash Access Holdings, Inc.  GCA  CVE
01-27 K3 Business Tec G  KBT  LSS
01-27 Lanxess Ag  LNXSF  OTN  5497
01-27 Metal Management, Inc.  MM  607
01-27 Pepco Holdings, Inc.  POM  NYSE  4735
01-30 Johnson Matthey P  JMPLY  OTN  10959


JANUARY 2014 MANAGEMENT CHANGE STATISTICS
C-LEVEL MANAGEMENT CHANGE STATISTICS
GRAND TOTAL – 1449

TOP INDUSTRY SECTORS
> Drugs/Biotech – 141
> Banking – 124
> Energy – 102

JANUARY 2014 CEO CHANGE STATISTICS
GRAND TOTAL – 168


TOP INDUSTRY SECTORS
> Energy – 12
> Manufacturing – 12
> Banking – 10
> Business Services – 10

JANUARY 2014 CFO CHANGE STATISTICS
GRAND TOTAL – 155


TOP INDUSTRY SECTORS
> Manufacturing – 14
> Energy – 12
> Food/Drink – 10
> Telecom – 10

JANUARY 2014 BOARD OF DIRECTOR CHANGE STATISTICS
GRAND TOTAL – 434


TOP INDUSTRY SECTORS
> Energy – 44
> Banking – 39
> Drugs/Biotech – 39
> Consumer Products – 23

Tuesday, January 14, 2014

2013 Executive Turnover Totals Point to Positive Growth Continuing

The American economy appears to have turned the corner but is still far from out of the woods.  With unemployment still slowly dropping and job growth incrementally improving, there appears to be growing optimism about job prospects and economic growth.  This optimism experienced a hiccup recently when the U.S. Government’s Bureau of Labor Statistics December 2013 job growth figures were well below analysts’ expectations.  Analysts expected a large number for December 2013 (around 200,000) and were quite disappointed after BLS announced,

The unemployment rate declined from 7.0 percent to 6.7 percent in December, while total nonfarm payroll employment edged up (+74,000)…

Top executives in both small and large firms also find themselves in a similar situation.  Opportunities are growing for top executives yet, underperforming firms are now more likely to change deck chairs as the overall economy shows life.  Liberum Research expects to see increased turnover in the executive ranks as we move through the early months of 2014.

Liberum has put together below a six 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 this point, the numbers began to reverse themselves.  Turnover at the executive levels of corporate America began to grow but not consistently.  Companies began again to consider new blood and often looked to change their corporate strategies as kernels of opportunity began to sprout ever so slightly.  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.

Below is a simple table outlining the quarterly turnover totals as registered through Liberum Research’s Management Change Database for 2008 through the fourth quarter of 2013 for CEO, CFO and overall C-level turnover.

Total CEO Turnover Comparisons
Year200820092010201120122013
1st Quarter745491388346680583
2nd Quarter596380321581665619
3rd Quarter533409298713636627
4th Quarter461430328697673636
Annual Total2,3351,7101,3352,3372,6542,465


Total CFO Turnover Comparisons
Year200820092010201120122013
1st Quarter593332296280640495
2nd Quarter551326273404612557
3rd Quarter438279256629598582
4th Quarter364313258476569562
Annual Total1,9461,2501,0831,7892,4192196


Total C-level Turnover Comparisons
Year200820092010201120122013
1st Quarter673540613453286354423971
2nd Quarter743050513199404150364102
3rd Quarter486536902522534942354123
4th Quarter427734392381459641974196
Annual Total23,30716,24111,55516,84918,91016,392


As you can see from the quarterly and annual executive turnover totals in the above chart, North American public companies are operating at a more consistent level with regard to turnover.   The same is true when viewed from a brief monthly perspective.  December 2013′s executive turnover totals remained reasonably high in the key categories.  Liberum anticipates this trend will continue as we move through January and February.

The latest monthly comparison figures with regard to executive turnover for December 2013 with those of December 2012 and November 2013 and December 2013 are as follows:
  • CEO turnover for December 2013 declined 9% from that of December 2012, CFO turnover declined 3%, while overall C-level turnover remained the same.
  • The month to month change from November 2013 to December 2013 showed an increase of 12% for CEOs, an increase of 6% for CFOs and an increase of 15% with regard to C-level changes.  Overall these totals remain positive signs for the economy.
In the below report, Liberum has focused on fifty two CEO changes of special significance for the month of December out of a total of 225. We have also put together the overall turnover figures for the month of December 2013.  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 the Liberum database.

DATE       COMPANY   TICKER    EXCHANGE   MARKET CAP $ MILLIONS
12-02 Rathbone Brothers RAT  LSS  7
12-03 Polycom, Inc. PLCM  NASDAQ  1810
12-04 Wolfden Resources WLF  CANADA  10
12-05 Agri-Dynamics Inc AGDY  OTN
12-05 Rainbow Coral Cor RBCC  OBB  3
12-05 Zodiac Exploratio ZEX  CVE
12-06 Domino’s Pizza, Inc. DPZ  NYSE  3871
12-06 Rio Bravo Oil, In RIOB  OBB  29
12-06 Selectica, Inc. SLTC  NASDAQ  23
12-09 First Physicians FPCG  OTN  50
12-09 Hologic, Inc. HOLX  NASDAQ  5992
12-10 Blox Inc BLXX  NYSE  864
12-10 Clean Diesel Tech CDTI  NASDAQ  13
12-10 General Motors Corporation GM  NYSE  55870
12-10 Jacksonville Banc JAXB  NASDAQ  75
12-10 Lululemon Athletica Inc. LULU  NASDAQ  10127
12-10 QLogic Corporation QLGC  NASDAQ  998
12-11 Absolute Software ABT  TORONTO  296
12-11 Crumbs Bake Shop, CRMB  NASDAQ  10
12-11 EOG Resources, Inc. EOG  NYSE  43089
12-11 Female Health Com FHCO  NASDAQ  244
12-11 Spdr S&P 500 SPY  ETF
12-12 Restoration Hardw RH  USC  2510
12-13 FTI Consulting, Inc. FCN  NYSE  1683
12-13 Great East Energy GASE  OBB  25
12-13 QUALCOMM Incorporated QCOM  NASDAQ  123200
12-13 Rsa Insurance Gro RSNAY  OTN  5410
12-16 KBR, Inc. KBR  NYSE  4518
12-16 Pricer -B- PRICB  STOCKHOLM
12-16 Violin Memory, In VMEM  NYSE  128
12-17 Centor Inc CNTO  OBB  74
12-17 Halozyme Therapeu HALO  NASDAQ  1663
12-18 Encision Inc ECIA  OTN  7
12-18 Globalscape Inc GSB  NYSE  44
12-18 Integrated Device IDTI  NASDAQ  1520
12-18 QUALCOMM Incorporated QCOM  NASDAQ  123100
12-18 Standex Int’l Corp. SXI  NYSE  760
12-19 Arricano Re Est  ARO  LONDON
12-19 Bhp Billiton Limi BHP  NYSE  169500
12-19 Co-Signer, Inc COSR  OBB  4
12-20 Nielsen Holdings NLSN  NYSE  17237
12-20 Renuen Corporatio RENU  OTN  324
12-23 Acer Inc Gdrregs ACEIF  OTN
12-23 CyberOptics Corporation CYBE  NASDAQ  40
12-23 EarthLink, Inc.  ELNK  NASDAQ  516
12-23 First West Virgin   FWV  NYSE  28
12-23 Invivo Therapeuti  NVIV  OTN  150
12-23 Metabolix, Inc. MBLX  NASDAQ  46
12-23 Orgenesis Inc ORGS  OTN  31
12-23 SMTC Corporation (USA) SMTX  NASDAQ  37
12-27 Crocs, Inc. CROX  NASDAQ  1427
12-31 Deutsche Tele Ag  DTEGY  OTN  75116


DECEMBER 2013 MANAGEMENT CHANGE STATISTICS
C-LEVEL MANAGEMENT CHANGE STATISTICS
GRAND TOTAL – 1448
TOP INDUSTRY SECTORS

> Energy - 161
> Drugs/Biotech – 129
> Metals/Mining – 103


DECEMBER 2013 CEO CHANGE STATISTICS
GRAND TOTAL – 225
TOP INDUSTRY SECTORS

> Energy – 29
> Manufacturing – 17
> Drugs/Biotech – 16


DECEMBER 2013 CFO CHANGE STATISTICS
GRAND TOTAL – 181
TOP INDUSTRY SECTORS

> Energy – 34
> Drugs/Biotech – 17
> Banking – 12


DECEMBER 2013 BOARD OF DIRECTOR CHANGE STATISTICS
GRAND TOTAL – 539
TOP INDUSTRY SECTORS

> Energy – 69
> Drugs/Biotech – 50
> Business Services – 31
> Manufacturing – 31

Monday, November 11, 2013

October Executive Turnover Defies Analyst Expectations

Liberum's executive turnover data for October 2013 appeared a bit more positive for the American economy than the previous month of September.  Three out of the four key executive turnover categories (CEOs, CFOs, C-level Execs and Board of Directors) saw percentage increases from the same month a year earlier and from the previous month of September 2013.  The more positive trend for October, however, was not evidenced in the latest monthly employment numbers released last week by ADP's October Employment Report.   

According to the ADP October Employment Report:

"According to ADP National Employment Report findings, the U.S. private sector added a total 
of 130,000 jobs during the month of October, well below the average of the last twelve months,” 
said Carlos Rodriguez, president and chief executive officer of ADP. "Small business growth 
was down from the previous month, while payrolls among large enterprises showed an 
increase." 
Mark Zandi, chief economist of Moody’s Analytics, said, "The government shutdown and debt 
limit brinkmanship hurt the already softening job market in October. Average monthly growth 
has fallen below 150,000. Any further weakening would signal rising unemployment. The 
weaker job growth is evident across most industries and company sizes.” 
The U.S. Department of Labor's Bureau of Labor Statistics (BLS) released its employment numbers last Friday, a week late due to the recent government shutdown.  Liberum analysis of our executive turnover totals has coincided more closely with the BLS' latest numbers which were much better than those reported by ADP and originally expected by most analysts.

 Below is a breakdown of Liberum's key executive category percentage changes for October 2013 compared with October a year earlier and the previous month of September 2013.   
  • For October 2013 CEO changes declined 3% from a year earlier, CFO changes increased 17%, overall C-level (as defined by Liberum Research as board of directors, CEOs, CFOs down to corporate VPs) changes increased 10% and board of director changes increased 5% as compared with October 2012 totals. 
  • The month to month change in executive turnover (September 2013 to October 2013) showed a somewhat similar picture with no change in CEOs, CFO changes increased 6%, overall C-level changes increased 16% and board of director changes increased 22%, respectively.       
Below are the overall turnover totals for October: 
KEY CEO CHANGES - OCTOBER 201332 COMPANIES WITH CEO CHANGES WORTH RE-EXAMINING 
According to Liberum's Management Change Database, a total of 210 CEO related changes occurred during October 2013. Here are 32 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. 

DATE   COMPANY TICKER  EXCHANGE  MARKET CAP $ MILLIONS    
10-02 Altair Nanotech, Inc.  ALTI  NASDAQ  30
10-02 Ener Core Inc   ENCR   OBB  106
10-02 Pyramid Oil Co    PDO  NYSE   25
10-03 United Online, Inc.   UNTD  NASDAQ  739
10-04 Farmers National  FMNB  NASDAQ  116
10-06 Basic Energy Srvcs.  BAS  NYSE  510
10-06 Blacksands Petrol  BSPE  OTN  36
10-08 Det Norske   DETNF  OTN  1885
10-09 Cognitiv Inc   COGV  OTN  188
10-09 Wave Systems Corp   WAVX  NASDAQ  42
10-10 Arcis Resources C  ARCS  OTN  2
10-10 Lyris Inc   LYRI  OTN  12
10-11 American Railcar   ARII  NASDAQ  859
10-14 Burberry Group Pl  BURBY  OTN  10113
10-15 Superior Indust Int'l   SUP  NYSE  499
10-15 Ucp Holdings, Inc  UCPH  OTN  12
10-16 Circa Enterprises   CTO Canada  4
10-16 Citrix Systems, Inc.  CTXS  NASDAQ  10619
10-16 Usell.Com Inc  USEL  OTN  22
10-17 Cca Industries, I   CAW  NYSE  22
10-17 McDermott International  MDR  NYSE  1786
10-21 Dussault Apparel  DUSS  OTN  424
10-24 Ixia  XXIA   NASDAQ  1123
10-24 Maxwell Tech. Inc.   MXWL  NASDAQ  239
10-25 Lassonde Industri LAS-A.TO 649
10-25 VirtualScopics, Inc. VSCP 13
10-28 Lorus Therapeutic  LOR  TOR  13
10-28 Sed International  SED  NYSE  5
10-29 AZZ incorporated   AZZ  NYSE  1136
10-30 Randstad Holding  RANJF  OTN  9676
10-30 Teva Pharmaceutical Ind   TEVA  NYSE  32600
10-31 Maxcom Telecom Ad  MXT  NYSE  205
OCTOBER 2013 MANAGEMENT CHANGE STATISTICS
C-LEVEL MANAGEMENT CHANGE STATISTICS
GRAND TOTAL - 1486
TOP INDUSTRY SECTORS
> Drugs/Biotech - 146> Energy - 120
> Metals/Mining - 89

OCTOBER 2013 CEO CHANGE STATISTICS
GRAND TOTAL - 210
TOP INDUSTRY SECTORS
> Drugs/Biotech - 22> Energy - 21
> Banking - 13

OCTOBER 2013 CFO CHANGE STATISTICS
GRAND TOTAL - 210
TOP INDUSTRY SECTORS
> Drugs/Biotech - 21
> Metals/Mining - 20
> Energy - 17

OCTOBER 2013 BOARD OF DIRECTOR CHANGE STATISTICS
GRAND TOTAL - 514
TOP INDUSTRY SECTORS
> Drugs/Biotech - 60
> Energy - 55
> Metals/Mining - 39

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.