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New York, NY, United States, 2007/06/18 - June turnover levels have come down back to Earth. While turnover remains reasonably high it is no where near the levels recorded in May and April which was characterized by a large number of quarterly earnings announcements and the proxy season.
June turnover levels, as expected, have come down back to Earth. While turnover remains reasonably high it is no where near the levels recorded in May and April which was characterized by a large number of quarterly earnings announcements and the proxy season. June turnover has so far come down in all major categories as compared with the same time period in April and May of 2007. June 1-13, 2007 turnover levels are very close to the numbers recorded in the same period in June 2006. Overall C-level turnover increased 2% as compared with the same period in June 2006. CEO turnover on the other hand, declined 3% from 2006 numbers while CFO turnover increased 9% over the same period in 2006. Board of director changes remain quite high but came off precipitously from the high numbers registered during the previous month of May.
We have found a more typical list of companies that experienced CEO changes during the first thirteen days of June for which investors might wish to re-examine for investment possibilities. According to Liberum's Management Change Database, 93 CEO related changes occurred during June 1-13, 2007. Below is a list of specific companies that underwent CEO changes investors might wish to re-examine for investment potential either positive or negative.
9 COMPANIES WITH CEO CHANGES WORTH RE-EXAMINING
Here are 9 from June 1 - 13, 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.
6/4 Enterprise Products Partners LP EPD (NYSE) $13.717 billion
6/4 Patriotic Scientific Corporation PTSC.OB (OTC BB) $197 million
6/6 Amerityre Corporation AMTY (NASDAQ) $111 million
6/8 CSK Auto Corporation CAO (NYSE) $832 million (check the liberum blog)
6/11 Arbinet-Theexchange, Inc. ARBX (NASDAQ) $148 million
6/11 Qwest Q (NYSE) $18.8 billion (check the Liberum blog)
6/12 Carlisle Companies Inc. CSL (NYSE) $2.7 billion
6/12 Graco Inc. GGG (NYSE) $2.662 billion
6/12 TeliaSonera TLSN.ST (Sweden) (check the 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)
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. For detailed information behind the statistics or for comparison annual data contact Liberum Research directly.
JUNE 1-13, 2007 MANAGEMENT CHANGE STATISTICS
C-LEVEL MANAGEMENT CHANGE STATISTICS
GRAND TOTAL - 1,082
TOP INDUSTRY SECTORS
• Drugs/Biotech - 91
• Business Services - 86
• Banking - 79
TOP INDUSTRY SECTORS FOR NEW HIRES ONLY
GRAND TOTAL - 494 or 46% of grand total
• Banking - 50
• Drugs/Biotech - 49
• Business Services- 35
JUNE 1-13, 2007 C-LEVEL TOTAL BREAKDOWNS BY STATUS
19% or 204 were internal moves
46% or 494 were new hires from outside the firm
0% or 4 left firms without clear explanation
22% or 239 were promoted within the firm
13% or 141 resigned or retired from the firm
0% or 1 was terminated
JUNE 1-13, 2007 CEO CHANGE STATISTICS
GRAND TOTAL - 93 TOP INDUSTRY SECTORS
• Manufacturing - 9
• Metals/Mining - 9
• Telecom - 9
TOP INDUSTRY OUTSIDE CEO HIRES ONLY
TOTAL - 21 OR 23% OF GRAND TOTAL
• Telecom - 8
• Banking - 5
• Energy - 4
• Metals/Mining - 2
JUNE 1-13, 2007 CEO LEVEL BREAKDOWNS BY STATUS
28 % or 26 were internal moves
23% or 21 were new hires from outside the firm
0% or 0 left firms without clear explanation
29% or 27 were promoted within the firm
20% or 19 resigned or retired from the firm
0% or 0 was terminated
JUNE 1-13, 2007 CFO CHANGE STATISTICS
GRAND TOTAL - 101 TOP INDUSTRY SECTORS
• Energy - 10
• Manufacturing - 10
• Business Services - 9
TOP INDUSTRY OUTSIDE CFO HIRES ONLY
TOTAL - 45 OR 45% OF GRAND TOTAL
• Drugs/Biotech - 9
• Metals/Mining - 7
• Telecom - 7
JUNE 1-13, 2007 BOARD OF DIRECTOR CHANGE STATISTICS
GRAND TOTAL - 339 TOP INDUSTRY SECTORS
• Drugs/Biotech - 37
• Banking - 36
• Media - 22
TOP INDUSTRY OUTSIDE DIRECTOR HIRES ONLY
TOTAL - 170 OR 50% OF GRAND TOTAL
• Banking - 28
• Drugs/Biotech - 19
• Business Services - 12
About Liberum Research
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.