CEO Turnovers the Highest Since 2008, Bloomberg Reports
Steve Ballmer's departure as CEO at Microsoft (NASDAQ: MSFT), and the company's publicized search for a replacement, has dominated headlines in recent months. The company is one of many that is in the process, or have already made changes at the most senior level.
Bloomberg reports U.S. corporations are introducing new CEOs at their fastest pace since 2008.
Many companies are facing declining market share, a deteriorating brand image or slumping sales. A new CEO is often brought in to reverse a declining trend and to guide the company in a new direction for 2014 and beyond.
As the Bloomberg article explained,“CEOs are required to master a broader range of skills” than they were in the past -- especially with rapid globalization, revolutionary new technologies and rising competition in countries such as China, India and Brazil.
Wal-Mart (NYSE: WMT) announced Monday that Doug McMillon, head of the company's international business, has been tapped to lead the world's largest retailer as its next CEO beginning in February.
Other notable CEO shuffles that have occurred this year includes Zynga (NASDAQ: ZNGA) hiring former Microsoft executive Don Mattrick to lead the social gaming giant -- as Zynga's declining business prompted the company to fire 18 percent of its total workforce.
BlackBerry (NASDAQ: BBRY) introduced a new CEO in January 2012 replacing the company's founders but his tenure wasn't long-lived. Thorsten Heins was relieved of his duties earlier this month as John Chen, a veteran Silicon Valley executive, was tasked with reviving the Canadian smartphone maker.
Through the third quarter of this year, out of the 500 companies in the S&P 500, 43 had introduced a new CEO at some point in 2013. 30 changes were the results of retirement, ten were instances of the executive being ousted or stepping down. The remainder were caused by the death of the executive or a merger.
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