CEO Departures Highest Since January

The abrupt resignation announced by Citigroup's CEO Vikram Pandit was one of 108 departures tracked by Challenger last month.

October saw the most CEO departures since 123 were recorded in January of this year, according to a report released Wednesday by global outplacement firm Challenger, Gray & Christmas, Inc. in Chicago. October CEO turnover was up 13.7 percent from the 95 CEO changes recorded in September.  

Last month's total was 18.7 percent higher than the corresponding month a year ago, when 91 CEO changes were recorded. Overall, the pace of CEO departures is down slightly from 2011. So far this year, 999 CEO departures have been announced, 1.3 percent fewer than the 1,013 CEO changes tracked by this point last year. The government/non-profit sector experienced the heaviest CEO turnover activity last month with 19 announced departures, including an announcement by the Africa-America Institute in New York, whose new CEO Amini Kajunju, a native of the Democratic Republic of Congo, is the first African ever to serve at the helm of the oldest nonprofit organization of its kind in the United States, according to the non-profit's press release.

The financial sector had the second most departures in October with 17, including Pandit's resignation from Citigroup at the hands of a board newly headed by Michael O'Neill. Through October, financial institutions have seen 100 CEO changes.

The health care sector, usually recording the highest number of departures each month, had 12 changes in October. For the year, health care has seen the most CEO departures with 194. Resignation is the most-often cited reason for CEO departures, with 300 this year, including 37 in October. Companies cited retirement 22 times in October as their leaders' reasons for leaving. Resignations and retirements are the most commonly cited reason for CEO departures. However, as the Pandit situation demonstrates, the large majority of these exits are, in reality, outright terminations masked as personal choices for the CEOs to step down, resign or retire, said Challenger. Companies and outgoing CEOs tend to throw a veil over the real reasons for departures, as they may impact one or both parties' reputation, earnings potential, or stature within their respective communities.

Additionally, 14 CEOs stepped down last month, which means they no longer hold the CEO title, but remain with the company in some other capacity; typically as a board member or chairman of the board. Another 12 found new positions in other companies.