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NewswireToday - /newswire/ -
New York, NY, United States, 06/01/2007 - Both April and May's key turnover totals came reasonably close to matching the record totals registered in the same period a year ago and were much higher than the totals registered in the first three months of 2007.
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April and May were characterized by corporate earnings announcements, proxy votes and an expected increase in executive turnover. Executive turnover typically increases during earnings season. April and May's key turnover statistics temporarily staunched the slowing trend in C-level turnover that first appeared in the last quarter of 06' and continued throughout the first quarter of 07'. Both April and May's key turnover totals came reasonably close to matching the record totals registered in the same period a year ago and were much higher than the totals registered in the first three months of 2007.
CHANGE DETAILS
April's overall C-level turnover declined 2% from the 06' total for April and Board of Director Changes, which was very high for the month due to the proxy season, declined 8% over the same month in April 06'. CEO turnover on the other hand, increased 2% for April 07' over the same month in 06' while CFO turnover jumped 18% over the 2006 total for April. May 07's totals were nearly a reverse of the April totals when compared to the same month in 2006. Overall C-level turnover was virtually the same as the equivalent period in 06'. The May 07' grand total was actually 1% greater than the record total registered in May 06. May 07's CEO and CFO turnover totals both registered an appreciable decline from the record totals registered in May 06'. May 07's CEO turnover declined 12% and CFO turnover declined 15%, respectively. Board of Director changes was extremely high in May 07' but that was also the case in 06'. Board of director changes in May declined 5% from May 06's record total.
Liberum expects the overall level of management change to continue to remain high, yet show continuing signs of moderation as we move through the remainder of the spring business season and into the slower summer months, particularly at the top levels of corporate management. Outlined below is a breakdown of the key management change totals for May 2007. We have also included a larger than usual list of companies that experienced CEO changes during May for which investors might wish to re-examine for investment possibilities. For detailed information behind the statistics or for comparison annual data contact Liberum Research directly.
MAY 2007 MANAGEMENT CHANGE STATISTICS
C-LEVEL MANAGEMENT CHANGE STATISTICS
GRAND TOTAL - 3,184
TOP INDUSTRY SECTORS
Banking - 296
Drugs/Biotech - 295
Energy - 225
TOP INDUSTRY SECTORS FOR NEW HIRES ONLY
GRAND TOTAL - 1,283 or 40% of grand total
Banking - 148
Drugs/Biotech - 137
Business Services- 94
MAY 2007 C-LEVEL TOTAL BREAKDOWNS BY STATUS
30% or 945 were internal moves
40% or 1,283 were new hires from outside the firm
0% or 7 left firms without clear explanation
18% or 579 were promoted within the firm
12% or 367 resigned or retired from the firm
0% or 3 were terminated
MAY 2007 CEO CHANGE STATISTICS
GRAND TOTAL - 242 TOP INDUSTRY SECTORS
Banking - 25
Drugs/Biotech - 23
Energy - 22
TOP INDUSTRY OUTSIDE CEO HIRES ONLY
TOTAL - 55 OR 23% OF GRAND TOTAL
Energy - 8
Metals/Mining - 5
Business Services - 4
Manufacturing - 4
MAY 2007 CEO LEVEL BREAKDOWNS BY STATUS
28 % or 68 were internal moves
23% or 55 were new hires from outside the firm
0% or 0 left firms without clear explanation
26% or 64 were promoted within the firm
22% or 54 resigned or retired from the firm
0% or 1 was terminated
MAY 2007 CFO CHANGE STATISTICS
GRAND TOTAL - 211 TOP INDUSTRY SECTORS
Drugs/Biotech - 21
Telecom - 17
Energy - 13
TOP INDUSTRY OUTSIDE CFO HIRES ONLY
TOTAL - 69 OR 33% OF GRAND TOTAL
Drugs/Biotech - 9
Metals/Mining - 7
Telecom - 7
MAY 2007 BOARD OF DIRECTOR CHANGE STATISTICS
GRAND TOTAL - 1,181 TOP INDUSTRY SECTORS
Drugs/Biotech - 111
Banking - 94
Insurance - 79
TOP INDUSTRY OUTSIDE DIRECTOR HIRES ONLY
TOTAL - 464 OR 39% OF GRAND TOTAL
Banking - 45
Drugs/Biotech - 39
Insurance - 39
CEO CHANGES
According to Liberum's Management Change Database, 242 CEO related changes have occurred during May - all situations investors might wish to re-examine for investment potential either positive or negative.
22 COMPANIES WITH CEO CHANGES WORTH RE-EXAMINING
Here are 22 from May 2007 that caught my eye. I'm looking for situations where I think a particularly strong or particularly weak choice has been made - given the apparent current state of the company - or where there is an interesting special situation.
5/1 Zimmer Holdings ZMH (NYSE) $21.46 billion (check the Liberum blog)
5/1 Cyberonics CYBX (NYSE) $547 million (check the Liberum blog)
5/1 BP plc (ADR) BP $216.4 billion (NYSE)
5/1 Westaff Staffing WSTF (NASDAQ) $93 million
5/3 Mobility Electronics, Inc. MOBE (NASDAQ) $89 million
5/7 Advance Auto Parts AAP (NYSE) $4.79 billion (check Liberum blog)
5/8 Ikanos Communications IKAN (NASDAQ) $210 million
5/10 Presstek PRST (NASDAQ) $218 million (check the Liberum blog)
5/10 JetBlue JBLU (NASDAQ) $1.91 billion (check the Liberum blog)
5/17 Cirrus Logic CRUS (NASDAQ) $651 (check Liberum blog)
5/20 Siemens AG SI (ADR) (NYSE) $112.4 billion
5/21 National Health Card System NMHC (NASDAQ) $89 million (check Liberum blog)
5/21 Etrials Worldwide ETWC $59 million
5/21 Questor Pharmaceuticals QSE (NASDAQ) $41 million
5/22 Black Box BBOX (NASDAQ) $619 (check Liberum blog)
5/29 Verisign VRSN (NASDAQ) $7.36 billion (check Liberum blog)
5/29 Health Management Associates HMA (NYSE) $2.62 billion (check Liberum blog)
5/29 Claires Stores Inc. CLE (NYSE) $3.070 billion
5/29 IDM Pharma Inc. IDMI (NASDAQ) $57 million
5/30 Talisman Energy TLM (NYSE) $21.382 billion (check Liberum blog)
5/31 Arrow International Inc. ARRO (NASDAQ) $ (check Liberum blog)
5/31 ValueClick VCLK (NASDAQ) $3.338 billion (check Liberum blog)
WHY FOLLOW THIS STUFF?
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 contains information.Likewise the departing CEOLikewise departing CFOs
New CEOs will bring new skills and a new direction. This is normally significant, and worth analyzing.
The next step is to get a reliable source of these investment leads - and that's why funds use Liberum (a division of The Wall Street Transcript)
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.
Daily customizable alerts, a searchable database, custom reports, xml feeds. Liberum clients get the data the way they can best exploit it. Get a short trial. And check out our new management change blog.
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richard[.]twst.com 
