Health care CEO turnover is up

Through the first nine months of 2010, 967 CEOs have been replaced in firms across the nation, with roughly 17% of those changes taking place at health care-focused businesses.

While total CEO turnover is up just 3% nationwide, those changes in the health-care sector are up roughly 10% compared to the first nine months of last year, according to a report published by Challenger, Gray & Christmas.

John Challenger, the research firm's chief executive, says a sluggish economy is putting increased pressure on CEOs to not only succeed, but to do so quickly.
“Under this heightened level of scrutiny, CEOs do not have long to prove themselves,” Challenger said. “While we don't have the CEO's tenure for every departure recorded in September, among those we have, 35% were in their position two years or less.”

“Less than half made it beyond five years,” he added.

While CEO turnover has increased in 2010 relative to last year, 2008 was much more tumultuous. At this time two years ago, 1,132 CEO changes had been made, 17% higher than this year's level.