Fewer chief executives departed in March; numbers up for the year

Departures of chief executives slowed in March but overall turnover for the year is still running ahead of 2011, as companies attempt to find their footing in the economic recovery. 

There were 94 announced departures in March, down from the 104 reported in February, but turnover is up 18 percent through the first three months of the year compared to the same period in 2011, according to the latest report released Wednesday by Challenger, Gray & Christmas, a firm that tracks employment trends. 

So far, a total of 321 chief executive departures have been announced this year, up from 287 during the first three months a year ago.  

There were 256 departures announced during the final three months of 2011.

“Last year, the first quarter experienced the fewest CEO changes since 2004," said John Challenger, chief executive officer of Challenger, Gray & Christmas. 

"It was unlikely that we would see a continuation of that, considering the ongoing volatility in the economy, which tends to result in volatility among organizational leadership," he said.  

The 94 changes last month were 5 percent below the 99 in March a year ago, the first time this year that monthly changes were lower than the same month a year ago.

Challenger conceded that it is difficult to pinpoint an overriding trend in departures when the majority of chief executives cite “resignation” as the reason for leaving.  

This year, 94 CEOs have resigned, while 70 have retired.  

Another 55 stepped down from their posts but remained with the company, usually as a board member, and 35 left for new positions at other companies.

The healthcare industry had the highest turnover in March, with 19 changes and 63 total departures for the year, a 66 percent increase from the same time last year.

Organizations in government and nonprofits have lost 39 CEOs so far, including 12 in March. 

The computer and financial sectors each announced 31 departures during the first three months of this year.

Among the notable March announcements was Illinois-based McDonald's, where longtime leader James Skinner will be replaced by President and Chief Operating Officer Don Thompson. And Media giant McClatchy announced that Patrick Talamantes would replace Gary Pruitt, who is leaving to head up The Associated Press.

Bankruptcy proceedings prompted the removal of Curt Jones, founder and CEO of the Kentucky-based ice cream maker Dippin’ Dots. Apparently, the company’s bank refused to lend any more money while Jones continued to run the operation, according to Challenger.  

Meanwhile, bankruptcy also prompted a change at Hostess. The Texas-based maker of Twinkies and Wonder Bread won bankruptcy court approval to replace outgoing CEO Brian Driscoll with Gregory Rayburn, who has been overseeing the company’s restructuring since February.

On Tuesday, Best Buy CEO Brian Dunn resigned amid an internal investigation of his personal conduct.