By Everdeen Mason
Turnover among the nation's chief executives dropped in October
as the health-care landscape continues to change under government
policy, according to Challenger Gray and Christmas Inc.
The outplacement and executive-coaching firm reported 104 CEOs
planned to depart in October, down from 107 CEOs in September and
108 CEO departures a year ago.
Once again, the health-care sector led in CEO turnover, with 29
CEOs leaving their posts. Year-to-date, health care institutions
announced 225 CEO departures this year, the highest turnover of all
the sectors.
The second-highest turnover occurred in the government and
non-profit sector and included the departure of Laura Santucci of
the National Democratic Committee.
The government and non-profit sector saw 18 departures this
month, followed by financial firms with 15 CEO departures.
These three sectors "are struggling the most in the current
environment," said John Challenger, the firm's CEO, in a statement.
"Health care systems are dealing with cuts in Medicare and Medicaid
funding. Government agencies and non-profits that depend on
government funding are in cost-cutting mode, as federal and state
lawmakers seek ways to cut massive deficits. The financial sector
still has not fully recovered from the recession."
Retirement was the most common reason for departure with 30 CEOs
retiring in October. Resignations, the leading reason year-to-date,
was cited by 28 CEOs, while 17 CEOs found new positions with other
companies and 13 stepped down into other chief-level or board
positions.
Write to Everdeen Mason at everdeen.mason@wsj.com
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