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 totalof 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 growthwas down from the previous month, while payrolls among large enterprises showed anincrease."Mark Zandi, chief economist of Moody’s Analytics, said, "The government shutdown and debtlimit brinkmanship hurt the already softening job market in October. Average monthly growthhas fallen below 150,000. Any further weakening would signal rising unemployment. Theweaker 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
GRAND TOTAL - 1486
TOP INDUSTRY SECTORS
> Drugs/Biotech - 146> Energy - 120
> Metals/Mining - 89
> Metals/Mining - 89
OCTOBER 2013 CEO CHANGE STATISTICS
GRAND TOTAL - 210
GRAND TOTAL - 210
TOP INDUSTRY SECTORS
> Drugs/Biotech - 22> Energy - 21
> Banking - 13
> Banking - 13
OCTOBER 2013 CFO CHANGE STATISTICS
GRAND TOTAL - 210
GRAND TOTAL - 210
TOP INDUSTRY SECTORS
> Drugs/Biotech - 21
> Metals/Mining - 20
> Metals/Mining - 20
> Energy - 17
OCTOBER 2013 BOARD OF DIRECTOR CHANGE STATISTICS
GRAND TOTAL - 514
GRAND TOTAL - 514
TOP INDUSTRY SECTORS
> Drugs/Biotech - 60
> Energy - 55
> Metals/Mining - 39
> 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.
