Management Turnover as Change Agent

Monday, June 10, 2013

May Executive Turnover Continues Trending Positive - Investment Ops Grow

Liberum's executive turnover data for May 2013 was quite similar to April 2013's data.  The overall executive turnover level was reasonably positive and while it still continues to have areas for concern, it remains a positive indicator for the Amercian economy.  All four key executive turnover categories (CEOs, CFOs, C-level Execs and Board of Directors) saw percentage declines from the same month a year earlier but May saw a reasonable increase from April 2013 in overall executive turnover for three out of the four key categories (CEO change total remained nearly the same) which remains a positive sign for the economy and was similar to the trend Liberum observed for April 2013 as compared to March 2013.  Liberums exexecutive data successfully predicted both May's ADP Employment Report and the U.S. Department of Labor's Bureau of Labor Statistics May Employment Report which were both predicted by most pundents to be somewhat negative..

Below is a breakdown of the key executive category percentage changes for May 2013 compared with May a year earlier and the previous month of April 2013.   
  • For May 2013 CEO changes declined 8% from a year earlier, CFO changes declined 4%, overall C-level (as defined by Liberum Research as board of directors, CEOs, CFOs down to corporate VPs) changes declined 13% and board of director changes declined 5% as compared with May 2012 totals. 
  • The month to month change in executive turnover (April 2013 to May 2013) showed a slightly different picture with a 0% change in CEOs, CFO changes increased 12%, overall C-level changes increased 10% and board of director changes increased 18%, respectively.       
Below are the overall turnover figures for May.  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.  

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 - MAY 201331 COMPANIES WITH CEO CHANGES WORTH RE-EXAMINING 
According to Liberum's Management Change Database, a total of 223 CEO related changes occurred during May 2013. Here are 31 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
05-01 Gryphon Gold Gorp   GYPH  OBB
05-01 Symmetricom, Inc.   SYMM  NASDAQ
05-02 Agere Systems, Inc.   AGR  
05-02 First Data Corporation   FDC  
05-02 Intel Corporation   INTC  NASDAQ   119300
05-02 Thq Inc.   THQIQ  OTN  206
05-03 Big Lots Inc.   BIG  NYSE  2134
05-07 Liberty Energy Co   LBYE  OTN  7
05-07 WebMD Health Corp.   WBMD  NASDAQ  1420
05-08 Bg Medicine, Inc.   BGMD  NASDAQ
05-08 Fusion-Io, Inc. C   FIO  NYSE  1478
05-09 Carbon Sciences,   CABN  OTN
05-10 A.P. Pharma, Inc.   APPA  OBB  134
05-15 Harvard Bioscience, Inc.   HBIO  NASDAQ  156
05-16 Eastman Chemical Company   EMN  NYSE  11448
05-17 Bar Harbor Bankshares   BHB  NYSE  140
05-17 Helmer Directiona   EXLA   180
05-18 Capital Southwest Corp.   CSWC  NASDAQ  521
05-20 Chesapeake Energy Corporation   CHK  NYSE  14021
05-20 SMTC Corporation (USA)   SMTX  NASDAQ  33
05-20 Vision-Sciences, Inc.   VSCI  NASDAQ  49
05-21 Alternative Energ   AEGY  OBB  623
05-21 Flagstar Bancorp, Inc.   FBC  NYSE  767
05-21 Protext Mobility   TXTM  OTN  764
05-22 iGATE Corporation   IGTE  NASDAQ  821
05-23 Forest Laboratories, Inc.   FRX  NYSE  10365
05-23 The Procter & Gamble Company   PG  NYSE  224400
05-24 Apollo Group, Inc.   APOL  NASDAQ  2364
05-24 Gleacher & Compan   GLCH  NASDAQ  84
05-29 Cannabis Science   CBIS  OTN  31
05-30 Tessera Technologies, Inc.   TSRA  NASDAQ  1105
 
MAY 2013 MANAGEMENT CHANGE STATISTICS
C-LEVEL MANAGEMENT CHANGE STATISTICS
GRAND TOTAL - 1512
TOP INDUSTRY SECTORS
> Banking - 171> Drugs/Biotech - 120
> Energy - 108

MAY 2013 CEO CHANGE STATISTICS
GRAND TOTAL - 223
TOP INDUSTRY SECTORS
> Banking - 25> Drugs/Biotech - 20
> Energy - 20

MAY 2013 CFO CHANGE STATISTICS
GRAND TOTAL - 212
TOP INDUSTRY SECTORS
Banking  - 17
> Drugs/Biotech - 17
> Metals/Mining - 14

MAY 2013 BOARD OF DIRECTOR CHANGE STATISTICS
GRAND TOTAL - 542
TOP INDUSTRY SECTORS
> Drugs/Biotech - 62
> Energy - 55
> Banking - 46

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.  And be sure to check out our management change blog. 
 

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