NewswireToday - /newswire/ -
New York, NY, United States, 2009/02/04 - Liberum continues to expect executive turnover to grow as we move into February and the latter part of the winter. The executive turnover numbers in January 2008, however, have been very slow when compared with the same numbers in January 2008.
Liberum Research has been predicting for the last number of months that executive turnover would begin increasing as we move into the new year. So far, the prediction has not come to pass. While corporations throughout the American and Canadian economies have been shedding employees at an alarming pace for the last number of months, overall executive turnover has remained tepid. Executives have been focusing their efforts for the last number of months on trimming costs, production, expenses and getting rid of employees but have not yet made dramatic changes in their own top executive ranks.
Liberum continues to expect executive turnover to grow as we move into February and the latter part of the winter. The executive turnover numbers in January 2008, however, have been very slow when compared with the same numbers in January 2008 and have not shown much change from the previous month. According to Liberum's turnover numbers for January 2009 as compared with January 2008 major declines were registered across the board for all key executive categories:
CEO turnover declined 35%, CFO turnover declined 49%, all C-level (from board of director all the way down to VP level) turnover declined 47% and board of director changes declined 41%.
While there were dramatic declines in executive turnover for much of 2008 and those declines have continued into January 2009, there were, nevertheless, a large number of high profile and "significant" executive changes that occurred which frequently had a direct impact on the companies involved. The changes often impacted their overall performance long and/or short-term. Investors today especially during the current recession need to be more focused on executive changes. Key changes at the top of corporations can have a major impact on a company's short or long-term performance.
Below is a brief breakdown of the key executive turnover related statistics for January 2009.
January 2009 Management Change Statistics
C-Level Management Change Statistics
Grand Total - 1,270
Top Industry Sectors
Drugs/Biotech - 115
Energy - 105
Banking - 96
January 2009 CEO Change Statistics
Grand Total - 170
Top Industry Sectors
Drugs/Biotech - 24
Banking - 20
Energy - 12
January 2009 CFO Change Statistics
Grand Total - 99
Top Industry Sectors
Energy - 14
Drugs/Biotech - 11
January 2009 Board of Director Change Statistics
Grand Total - 313
Drugs/Biotech - 35
Energy - 29
Banking - 23
Key CEO Changes - January 2009
24 Companies With CEO Changes Worth Re-examining
According to Liberum's Management Change Database, a total of 170 CEO related changes occurred during January 2009. Here are 24 from the time period that caught my eye. I'm looking for situations where I think a particularly strong or weak choice has been made - given the apparent current state of the company - or where there is an interesting special situation.
Date – Company Ticker Exchange Market Cap
01-05 – Borders Group, Inc. BGP (NYSE) $31 million
01-05 – Quidel Corporation QDEL (NASDAQ) $419 million
01-06 – Accelrys, Inc. ACCL (NASDAQ) $121 million
01-06 – Borland Software Corp. BORL (NASDAQ) $78 million
01-07 – Orbitz Worldwide OWW (NYSE) $314 million
01-08 – Chico's FAS, Inc. CHS (NYSE) $750 million
01-08 – Footstar Inc. New FTAR (OTC BB) $75 million
01-08 – Patient Safety Tech. INc. PSTX (OTC BB) $16 million
01-09 – Compton Petroleum CMZ (NYSE) $128 million
01-09 – PRG_Schultz International, Inc. PRGX (NASDAQ) $89 million
01-12 – First Industrial Realty FR (NYSE) $329 million
01-12 – Seagate Technology STX (NASDAQ) $2.324 billion
01-13 – Yahoo! Inc. YHOO (NASDAQ) $16.777 billion
01-14 – Satyam Computer SAY (NYSE) $414 million
01-15 – Anadigics, Inc. ANAD (NASDAQ) $112 million
01-15 – Stellar Resources SRRL (OTC BB) $430 million
01-20 – Carmike Cinemaa, Inc. CKEC (NASDAQ) $35 million
01-21 – AngioDynamics, Inc. ANGO (NASDAQ) $289 million
01-21 – Best Buy Co. Inc. BBY (NYSE) $11.291 billion
01-23 – Citizens Banking Corp. CRBC (NASDAQ) $195 million
01-26 – Cardionet, Inc. BEAT (NASDAQ) $502 million
01-26 – Walgreen Company WAG (NYSE) $26.543 billion
01-29 – InterNap Network Services INAP (NASDAQ) $133 million
01-29 – Synergetics USA Inc. SURG (NASDAQ) $24 million
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 to take the position contains information. Likewise the departing CEO. Likewise departing CFOs.
New CEOs will bring new skills and often-times a new direction. This is normally significant, and worth analyzing.
Liberum Research, the independent research firm focused on corporate management change, has developed an online relational database designed to assist institutional investors develop special situation investment ideas related to executive management change. While special situation investing traditionally revolves around corporate restructuring, spin-offs and acquisitions, executive management changes, depending on the circumstances, can represent a short or long-term investment opportunity. Even when one excludes the major executive changes that continue to impact the troubled financial sector other industry sectors have management change related investment opportunities that merit examination.
Liberum's four year old plus database offers institutional investors the ability to examine an individual company, sector/s, group of companies, and/or geographic region/s/locations via a metric of one's own choosing. You can use the information individually or in combination with a number of other financial variables/tools to develop unique investment ideas. Subscribers often take the service as an electronic feed rather than as an online service. Through the use of Liberum's electronic feed, investment firms have the ability to integrate Liberum's management change data with a variety of other feeds and data applications which when combined could be used as a sophisticated method for developing potential short and long-term investment ideas.
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. The data is also useful for investment bankers, private equity, executive search and consulting firms. The data can be used in numerous ways.
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 management change blog.