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