Management Turnover as Change Agent

Thursday, October 2, 2014

Latest Executive Turnover Data Does Not Correlate With Employment Growth Figures

The latest executive turnover numbers remain far more muddled than Liberum expected. Both the September totals and the latest quarterly executive turnover numbers have failed to indicate a trend for where executive turnover will be going in the near future. To make matters more complicated, Liberum Research's latest executive turnover numbers have not correlated with the job growth numbers that were just released October 1, from ADP or with the latest decreased number of people seeking unemployment benefits released from the government.  ADP's September Employment Report results were far more positive than the executive turnover numbers Liberum tracked over the same period.  This lack of correlation between these two data categories is a bit unusual.  It is possible the employment numbers to be released from U.S. Government's Bureau of Labor Statistics (BLS) later this week, will correlate more closely with Liberum's latest executive turnover figures, we will just have to see.


Private sector employment increased by 213,000 jobs from August to September.

"September’s jobs added number marks the sixth straight month of employment gains above 200,000,” said Carlos Rodriguez, president and chief executive officer of ADP. “It’s a positive sign for the economy to see the 200,000-plus trend continue.”
Mark Zandi, chief economist of Moody’s Analytics, said, "Job gains remain strong and steady. The pace of job growth has been remarkably similar for the past several years. Especially encouraging most recently is the increasingly broad base nature of those gains. Nearly all industries and companies of all sizes are adding consistently to payrolls.” 

While Liberum has been a bit surprised about the latest executive turnover numbers, we remain positive about the American Economy and continue to expect executive turnover numbers to trend upward as we move into the Fall and early Winter months. 

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 that point, the numbers began to reverse themselves.  Turnover at the executive levels of corporate America began to grow but not consistently and that trend has continued.  

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 these changesget a free trial to Liberum's OnlineManagement 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 nearly 200,000 data points from which you can generate ideas and daily information on who ischanging jobs at the top.
Below is a simple table outlining the quarterly turnover totals as registered through Liberum Research's Management Change Database for 2008 through the third 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 619 527
 3rd Quarter533409298713 636 627 557
 4th Quarter461430328697 673 636NA
 Annual Total2,3351,7101,3352,337 2,6542,465 1,584

 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 NA 
 Annual Total1,9461,250 1,0831,789 2,4192,196 1,613


 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 41974196NA 
 Annual Total23,307 16,241 11,55516,849 18,91016,392 12,150


The latest monthly comparison figures with regard to executive turnover for September 2014 as compared with those of September 2013 and August 2014 and September 2014 are as follows:  
  • CEO turnover for September 2014 declined 17% from that of September 2013, CFO turnover declined 7%, C-level turnover declined 5% and Board of Director turnover declined 14%.  
  • The the month to month change from August 2014 to September 2014 was a bit more positive. CEO turnover increased 11% for CEOs, declined 12% for CFOs, increased 6% with regard to C-level changes and declined 9% for Board of Director changes.  
In the below report, Liberum has focused on forty five CEO changes of special significance for the month of September out of a total of 175. We have also put together the overall turnover figures for the month of September 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
09-01 American International Group, Inc. AIG  79991
09-01 Luxottica Group S.p.A. (ADR)  LUX  25308
09-02 Danaher Corporation  DHR  53546
09-02 Gordmans Stores  GMAN  70
09-03 Baldwin Technology Co. BLD
09-03 Trans World Entertainment Corporation  TWMC  115
09-03 Westell Technologies, Inc.  WTSL  70
09-03 Willbros Group, Inc. WG  530
09-04 Alcatel-Lucent (ADR)  ALU  9377
09-05 First Mountain Bn  FMBP  9
09-05 Triple-S Mgmt Cl  GTS
09-06 Positron Corp  POSC
09-08 Capital Product P  CPLP  918
09-08 Hertz Global Holdings, Inc.  HTZ  12522
09-08 International Paper Company  IP  20659
09-08 Reneuron Group  RENE.L
09-09 Lighting Science  LSCG  37
09-11 Altisource Portfo  ASPS  2252
09-11 Mri Interventions  MRIC  68
09-12 Vicon Inds Inc VII  16
09-16 ATLANTIC POWER CORP  AT
09-16 Landec Corporation  LNDC  337
09-17 Agilent Technologies Inc.  A
09-17 Insulet Corporati  PODD  2033
09-18 Continental Resrc  CLR  24783
09-18 Hudson City Bncp  HCBK
09-18 Oracle Corporation  ORCL  175100
09-19 JetBlue Airways Corporation  JBLU  3210
09-19 Solaris Power Cel  SPCL
09-22 Medijane Hldgs In  MJMD  12
09-22 Response Biomedic  RPBIF  9
09-22 Thoratec Corp.  THOR  1495
09-24 Activecare Inc  ACAR  14
09-24 Aja Cannafacturin  AJAC   339
09-24 Malvern Bancorp,  MLVF   71
09-24 That Marketing So  VSHGD  15
09-25 Sears Canada Inc  SCC.TO  1299
09-25 Success Holding G  SHGT  51
09-26 The Pep Boys - Manny, Moe & Jack  PBY  503
09-29 American Apparel, Inc.  APP  140
09-29 AMN Healthcare Services, Inc.  AHS  719
09-29 Coty Inc. Class A  COTY  5903
09-29 Loton Corp  LTNR  268
09-29 Lyondellbasell In  LYB  56925
09-29 Protalix BioTherapeutics Inc. PLX  221

SEPTEMBER 2014 MANAGEMENT CHANGE STATISTICS
C-LEVEL MANAGEMENT CHANGE STATISTICS
GRAND TOTAL - 1223
TOP INDUSTRY SECTORS
> Drugs/Biotech 
- 137
> Banking  - 124
> Business Services - 84
SEPTEMBER 2014 CEO CHANGE STATISTICS
GRAND TOTAL - 175
TOP INDUSTRY SECTORS

> Banking - 15
> Drugs/Biotech - 14
> Insurance -14
> Manufacturing - 14
SEPTEMBER 2014 CFO CHANGE STATISTICS
GRAND TOTAL - 184
TOP INDUSTRY SECTORS

> Business Services - 13
> Energy - 13
> Drugs/Biotech - 11
> Manufacturing - 11
SEPTEMBER 2014 BOARD OF DIRECTOR CHANGE STATISTICS
GRAND TOTAL - 361
TOP INDUSTRY SECTORS

> Drugs/Biotech - 51
> Banking - 24
> Business Services - 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. 
Liberum's 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.  

Monday, September 8, 2014

August Experiences Major Drop in Executive Turnover - Coincides with Employment Growth Drop for August

August is the first month in a long time where executive turnover showed significant declines from the same month a year earlier (August 2013) and from the previous month (July 2014).  It is likely, the latest drop in Liberum Research's executive turnover numbers is a momentary blip.  Liberum expects turnover in September to increase significantly and to continue growing throughout most of the Fall.   As has so often been the case, the drop in executive turnover for August coincided with a similar drop in August for job growth as measured by the U.S. Bureau of Labor Statistics and by ADP's August employment Report.
 
Liberum Comparison Breakdown of Key August Executive Turnover 

Below is a breakdown of Liberum's key executive category percentage changes for August 2014 compared with August a year earlier and the previous month of July 2014.   
  • For August 2014 declines in turnover took place in three key categories.  CEO changes declined 24% from  August a year earlier, C-level changes declined 20%, and board of director changes declined 25%.  CFO changes on the other hand, increased a mere 1%.
  • The month to month change in executive turnover (July 2014 to August 2014) also showed significant declines in three of the four key categories.  CEO changes declined 30% for CEOs, C-level changes declined 26%, and board of director changes declined 29%.  CFO changes on the other hand, increased 32%.       
Below are the overall turnover totals for August.  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.
 
KEY CEO CHANGES - AUGUST 2014
63 COMPANIES WITH CEO CHANGES WORTH RE-EXAMINING 
According to Liberum's Management Change Database, a total of 157 CEO related changes occurred during August 2014. Here are 63 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    
08-01 Xiangtian Usa Air  GOAS  OTC  971
08-04 Brady Corporation  BRC  NYSE  1306
08-04 Cafepress Inc.  PRSS  NASDAQ  87
08-04 DST Systems, Inc.  DST  NYSE  3595
08-04 ITT Educational Services, Inc.  ESI  NYSE  186
08-04 Southwest Gas Corporation  SWX  NYSE  2256
08-04 Synacor, Inc.  SYNC  NASDAQ  66
08-04 Vantage Health  VNTH  OTC  17
08-04 Vystar Corp  VYST  OTC  5
08-05 Dara Biosciences  DARA  NASDAQ  11
08-05 Rex Bionics  RXB  SEA
08-06 Sage Grp Plc Unsp  SGPYY  OTC  6876
08-06 Sprint Nextel Corporation  S  NYSE  23275
08-06 Theravance, Inc.  THRX  NASDAQ  2478
08-07 Bcb Bancorp, Inc.  BCBP  NASDAQ  108
08-07 Cleveland-Cliffs Inc  CLF  NYSE  2618
08-07 Cortendo Ab  CRTOF  OTC  57
08-07 Nanometrics Incorporated  NANO  NASDAQ  398
08-08 Axion Intl Hldgs  AXIH  OTC  20
08-08 GNC Corporation  GNC  NYSE  3091
08-11 Bemis Company, Inc.  BMS  NYSE  3982
08-11 Citizens & Northe  CZNC  NASDAQ  241
08-11 ConAgra Foods, Inc.  CAG  NYSE  13279
08-11 Demand Media Inc.  DMD  NYSE  167
08-11 Destination Mater  DEST  NASDAQ  266
08-11 Empire Global Gam  EPGG  OTC  974
08-11 Lmi Aerospace Inc.  LMIA  NASDAQ  187
08-12 Capital Product P  CPLP  NASDAQ  973
08-12 Equal Energy Ltd  EQU  TORONTO  215
08-12 Gncc Capital, Inc  GNCP  OTC  20
08-12 Manitoba Telecom  MOBAF  OTC  2190
08-12 Serco Group  SRP  LONDON  15
08-12 Spark Networks plc  (ADR)  LOV  NYSE  133
08-13 Alternative Energ  ALNE  OTC  36
08-13 CDI Corp.  CDI  NYSE  282
08-13 Ezcorp Inc   EZPW  NASDAQ  525
08-13 Platforms Wireles  PLFM  OTC  306
08-15 Cms Bancorp, Inc.  CMSB  NASDAQ  21
08-15 Decisionpoint Sys  DPSI  OTC   4
08-15 Hallmark Financial Services, Inc.  HALL  NASDAQ  188
08-18 Aeropostale, Inc.  ARO  NYSE  308
08-18 Dollar General Corp.  DG  NYSE  19339
08-18 Eniro  ENRO  STO  
08-18 Kennametal Inc.  KMT  NYSE  3509
08-18 Mechel OAO (ADR)  MTL  NYSE  762
08-19 Gordmans Stores  GMAN  NASDAQ  65
08-19 Imperva, Inc. Com  IMPV  NYSE  770
08-19 Urologix, Inc.  ULGX  OTC  3
08-20 Polonia Bancorp,  PBCP  NASDAQ  46
08-21 Aaron's, Inc. Com  AAN  NYSE  1838
08-21 Ixia  XXIA  NASDAQ  752
08-21 Petlife Pharmaceu  EVGID  OTC  
08-22 Landauer, Inc.  LDR  NYSE  342
08-22 NTN Buzztime Inc.  NTN  NYSE  40
08-22 Rightscorp, Inc  RIHT  OTC  26
08-25 The Bon-Ton Stores, Inc.  BONT  NASDAQ  226
08-26 Single Touch Syst  SITO  OTC  57
08-26 Telecity Group Pl  TLEIY  OTC  2679
08-26 Western Graphite  WSGP  OTC  595
08-27 Pandora Media, In  P  NYSE  5509
08-27 Xzeres Corp  XPWR  OTC  15
08-28 Era Group Inc.  ERA  NYSE  522
08-29 Donegal Group, In  DGICA  NASDAQ  420
08-29 Neutra Corp  NTRR  OTC  4
 
AUGUST 2014 MANAGEMENT CHANGE STATISTICS
C-LEVEL MANAGEMENT CHANGE STATISTICS
GRAND TOTAL - 1157
TOP INDUSTRY SECTORS
> Drugs/Biotech - 131> Energy - 101
> Banking - 73

AUGUST 2014 CEO CHANGE STATISTICS
GRAND TOTAL - 157
TOP INDUSTRY SECTORS
> Drugs/Biotech - 16
> Retail - 12> Banking - 9
> Business Services - 9

AUGUST 2014 CFO CHANGE STATISTICS
GRAND TOTAL - 158
TOP INDUSTRY SECTORS
> Energy - 30
> Drugs/Biotech - 28
> Banking - 12

AUGUST 2014 BOARD OF DIRECTOR CHANGE STATISTICS
GRAND TOTAL - 395
TOP INDUSTRY SECTORS
> Drugs/Biotech - 43
> Energy - 35
> Business Services - 27

Thursday, July 17, 2014

2nd Quarter Executive Turnover Remains Positive - Investment Ops Abound

Executive turnover continues in a positive direction despite a slowdown in a few of the key categories.  The trend in executive turnover continues to correlate with the continuing positive news related to job growth in the American economy and the declining overall unemployment rate.  Last Thursday, July 3, the U.S. Department of Labor's Bureau of Labor Statistics (BLS) announced the June Employment Report and, as anticipated, the numbers were quite positive.  According to the BLS Report,

Total nonfarm payroll employment increased by 288,000 in June, and the unemployment rate 
declined to 6.1 percent, the U.S. Bureau of Labor Statistics reported today. Job gains were widespread, 
led by employment growth in professional and business services, retail trade, food services and drinking 
places, and health care. 

Earlier in that same week, ADP released it latest Employment Report and the job growth numbers were also very positive. According to the ADP Report released July 2,

Private sector employment increased by 281,000 jobs from May to June.

Mark Zandi, chief economist of Moody’s Analytics, said, "The job market is steadily improving. 
Job gains are broad based across all industries and company sizes. Judging from the job 
market, the economic recovery remains fully intact and is gaining momentum.” 

The American economy appears to moving on all cylinders.  Job opportunities are growing at numerous levels of the economy but still remain inconsistent for numerous people with different skills and experience.  Top executives in both small and large firms are beginning to find new job opportunities for their talents.  Liberum Research expects to see increased turnover in the executive ranks as we move through the the Summer and into the early Fall, despite the fact this is typically a slower time for executive turnover.  
 
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.  You can see that despite the slowing overall numbers in June of this year, the numbers were quite positive for the second quarter.
 
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 619 537 
 3rd Quarter533409298713 636 627 
 4th Quarter461430328697 673 636 
 Annual Total2,3351,7101,3352,337 2,6542,465 1037
 
 
 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  
 4th Quarter364 313  258   476569562  
 Annual Total1,9461,250 1,0831,789 2,4192196 1063
 
 
 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 42354123 
 4th Quarter4277 3439  2381   4596 41974196 
 Annual Total23,307 16,241 11,55516,849 18,91016,392 8,200
 

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. June's 2014's executive turnover totals remained reasonably high in the key categories.  Liberum expects this trend to continue as we move through the Summer and early Fall months.  

The latest monthly comparison figures with regard to executive turnover for June 2014 with those of June 2013 and May 2014 and June 2014 are as follows:  
  • CEO turnover for June 2014 declined 14% from that of June 2013, whereas CFO turnover increased 10%, C-level and Board of Director turnover declined 15% for both categories.  
  • The the month to month change from May 2014 to June 2014 showed a decline of 23% for CEOs, a decrease of 27% for CFOs and a decline of 20% with regard to C-level changes and a decline of 12% for Board of Director changes.  
In the below report, Liberum has focused on fifty six CEO changes of special significance for the month of June out of a total of only 164. We have also put together the overall turnover figures for the month of June 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
06-12 Absolute Software ABT  TORONTO  301
06-24 Advanced Cell Tec ACTC  OTC  193
06-02 Advanced Energy Industries, Inc.  AEIS  NASDAQ  756
06-17 Air Products & Chemicals, Inc.  APD  NYSE  27679
06-18 American Apparel, Inc.  APP  NYSE  115  
06-10 American Int'l Group, Inc.   AIG  NYSE  79580
06-24 Antares Pharma Inc.  ATRS  NASDAQ  358
06-02 Arctic Cat, Inc.  ACAT  NASDAQ  452
06-05 Avra   AVRN   47
06-12 bebe stores, Inc.  BEBE  NASDAQ  263
06-16 Biolase, Inc.  BIOL  NASDAQ  80
06-09 Brainstorm Cell T  BCLI  OTC  55
06-05 Caprock Oil Inc  ROKO  OTC 48
06-24 Chemring Group Pl  CMGMF  OTC  737
06-02 Cision  CSN   ST
06-26 Citrix Systems, Inc.  CTXS  NASDAQ  10426
06-02 Curis, Inc.   CRIS  NASDAQ  145
06-17 Dara Biosciences  DARA  NASDAQ  10
06-10 Dendreon Corporation  DNDN  NASDAQ  327
06-25 Diadexus, Inc.  DDXS  OTC  41
06-03 Digipath DIGP   OTC  22
06-11 Dna Brands, Inc.  DNAX  OTC  696
06-27 Dollar General Corp.  DG  NYSE  17346
06-13 Doral Financial Corp.  DRL  NYSE  30
06-18 Ecrypt Techno Inc  ECRY  OTC  16
06-02 Equity One, Inc.  EQY  NYSE  2796
06-09 Everyware Global,  EVRY  NASDAQ  28
06-30 Finnvedenbulten  FBAB  STO
06-12 First Natl Corp S  FXNC  OTC  37
06-05 Fresh Promise Foo  FPFI   OTC  306
06-28 Furmanite Corp  FRM   NYSE  417
06-25 Heatwurx  HUWX  OTC  20
06-02 Hipcricket Inc  HIPP  OTC  32
06-23 I.D. Systems, Inc.  IDSY  NASDAQ  62
06-12 Infosys Technologies Ltd (ADR)  INFY  NYSE  30421
06-03 Innocent, Inc.  INCT  OTC  392
06-24 Kid Brands, Inc   KIDB  OTC  233
06-16 Lihua Internation  LIWA  OTC  62
06-05 Maxwell Resources, Inc.  MAXE  OTC  1
06-11 Medient Studios,  MDNT  OTC  1
06-02 Navidea Biopharma  NAVB  NYSE  239
06-13 Novatel Wireless, Inc.  NVTL  NASDAQ  60
06-10 Ocean Power Tech  OPTT  NASDAQ  20
06-18 Pdc Energy, Inc.  PDCE  NASDAQ  2410
06-13 Protalix BioTherapeutics Inc.  PLX  NYSE  356
06-30 Rayonier Inc.  RYN  NYSE
06-13 Research Frontier  REFR  NASDAQ  139
06-25 Senesco Tech  SNTI  OTC  19
06-17 Solvista Gold Cor  SVV  CA VANCOUVER  10
06-27 Tecumseh Products  TECU  NASDAQ  94
06-06 Thinspace Tech  THNS  OTC 23
06-04 Universal Truckload Srvcs, Inc.  UACL  NASDAQ  715
06-03 Unwired Planet, I  UPIP  NASDAQ  239
06-23 Vican Resources,  VCAN  OTC  19
06-06 Xerium Technologies, Inc.  XRM  NYSE  242
06-23 Zynex Inc  ZYXI  OTC  8

JUNE 2014 MANAGEMENT CHANGE STATISTICS
C-LEVEL MANAGEMENT CHANGE STATISTICS
GRAND TOTAL - 1206
TOP INDUSTRY SECTORS
> Drugs/Biotech 
- 160
> Banking  - 101
> Energy - 70
JUNE 2014 CEO CHANGE STATISTICS
GRAND TOTAL - 163
TOP INDUSTRY SECTORS

> Drugs - 24
> Auto  - 7
> Energy - 6
JUNE 2014 CFO CHANGE STATISTICS
GRAND TOTAL - 181
TOP INDUSTRY SECTORS

> Drugs/Biotech - 26
> Metals/Mining - 14
> Health - 10
JUNE 2014 BOARD OF DIRECTOR CHANGE STATISTICS
GRAND TOTAL - 376
TOP INDUSTRY SECTORS

> Drugs/Biotech - 60
> Banking - 26
> Energy- 25
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, 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.  Subscribers often take the service as an electronic feed rather than as an online service. Through the use of Liberum's electronic feed, investment firms have the ability to integrate Liberum's management change data with a variety of other feeds and data applications which when combined could be used as a sophisticated method for developing potential short and long-term investment ideas.