Monthly CEO Turnover Grinds to Halt in March, But Posts 1Q Record -- Challenger

   By Maria Armental

The number of chief executives who left their posts set a first-quarter record but slowed sharply in March, the second consecutive monthly decline as the coronavirus pandemic spread around the country, outplacement firm Challenger, Gray & Christmas said Wednesday.

The firm, which had warned February's CEO turnover slowdown could be a reaction to the coronavirus outbreak as companies delayed leadership changes, said turnover in March had fallen to the lowest monthly level in nearly two years. In all, 94 CEOs left their post that month, down 27% from February and 30% from March 2019.

Women took over nearly 24% of the CEO openings in the first quarter, the biggest gain since Challenger began tracking CEO turnover. It reached the highest level since Challenger began tracking the changes in 2002 and fell just shy of the record set in the fourth quarter.

Hospitals accounted for the highest CEO turnover in March, according to Challenger.

"Many are losing money due to the need to cancel elective procedures that typically propel these entities into the black at a time when cost-cutting would only hurt communities, patients, and health professionals," the firm said.

Challenger tracks on a monthly basis CEO changes of U.S.-based companies that have been in business for at least two years and employ at least 10 workers based on filings with the Securities and Exchange Commission, news reports and company announcements.

Write to Maria Armental at maria.armental@wsj.com

(END) Dow Jones Newswires

April 08, 2020 05:44 ET (09:44 GMT)

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