Annual and Quarterly North American Executive Turnover Point to Continued Economic Growth

NEW YORK - Jan. 7, 2015 - PRLog -- Who would have thought, but for the first time in many years, it's the American Economy that is getting all the positive attention.  Some of the positive change is related to the precipitous fall in oil prices but more of it relates to improved ecoonomic policies and the ability of the American economy to adapt.  Liberum Research has been predicting positive news for the American Economy over the last two years.  Most of our predictions have been primarily based on the overall growth trend in executive turnover and the slowly improving employment situation. The latest executive turnover numbers, while not fabulous, continue to support positive growth for the American Economy.  The economy is still faced with serious employment problems, particularly for the long term unemployed, and a continuing drag in salary increases for the majority of the working population.  Increases in executive turnover, which Liberum Research sees as an important economic indicator, have remained on a constant positive trend. Liberum expects executive turnover to continue in a positive direction as we move through the new year.

Liberum has put together below, a seven 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 while not consistently and that trend has continued and is expected to be about the same for all of 2015.

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 and annual turnover totals as registered through Liberum Research's Management Change Database for 2008 through 2014 for CEOs, CFOs and overall C-level turnover.

Total CEO Turnover Comparisons

 Year   2008   2009   2010   2011   2012   2013   2014

 1st Quarter   745   491   388   346   680   583   500

 2nd Quarter   596   380   321   581   665   619   527

 3rd Quarter   533   409   298   713   636   627   557

 4th Quarter   461   430   328   697   673   636   651

 Annual Total   2,335   1,710   1,335   2,337   2,654   2,465   2,235

Total CFO Turnover Comparisons

 Year   2008   2009   2010   2011   2012   2013   2014

 1st Quarter   593   332   296   280   640   495   468

 2nd Quarter   551   326   273   404   612   557   595

 3rd Quarter   438   279   256   629   598   582   550

 4th Quarter   364   313   258   476   569   562   586

 Annual Total   1,946   1,250   1,083   1,789   2,419   2,196   2,199

Total C-level Turnover Comparisons

 Year   2008   2009   2010   2011   2012   2013   2014

 1st Quarter   6735   4061   3453   2863   5442   3971   4083

 2nd Quarter   7430   5051   3199   4041   5036   4102   4117

 3rd Quarter   4865   3690   2522   5349   4235   4123   3950

 4th Quarter   4277   3439   2381   4596   4197   4196   4200

 Annual Total   23,307   16,241   11,555   16,849   18,910   16,392   16,350

The latest monthly comparison figures with regard to executive turnover for December 2014 as compared with those of December 2013 and December 2014 and November 2014 are as follows:

CEO turnover for December 2014 showed no change from that of December 2013, CFO turnover increased 2%, C-level turnover increased just 1% and Board of Director turnover declined 4%.

The the month to month change from November 2014 to December 2014 overall was somewhat more positive. CEO turnover increased 7% for CEOs, declined 12% for CFOs, increased 10% with regard to C-level changes and increased 35% for Board of Director changes.

DECEMBER 2014 MANAGEMENT CHANGE STATISTICS

C-LEVEL MANAGEMENT CHANGE STATISTICS
GRAND TOTAL - 1457
TOP INDUSTRY SECTORS
- Drugs/Biotech - 148
- Energy  -119
- Banking - 97

DECEMBER 2014 CEO CHANGE STATISTICS
GRAND TOTAL - 226
TOP INDUSTRY SECTORS
- Energy - 14
- Drugs/Biotech - 12
- Banking -10
- Consumer Products - 10
- Metals/Mining - 10

DECEMBER 2014 CFO CHANGE STATISTICS
GRAND TOTAL - 185
TOP INDUSTRY SECTORS
- Drugs/Biotech - 17
- Metals/Mining - 13
- Computer - 10

DECEMBER 2014 BOARD OF DIRECTOR CHANGE STATISTICS
GRAND TOTAL - 517
TOP INDUSTRY SECTORS
- Drugs/Biotech - 68
- Energy - 49
- Banking - 33

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.