CEO Turnover Slows to Snail's Pace in October

Hospital CEO exits continue to slow at the start of the third quarter.

Hospital CEO turnover is slowing down as we head closer to the new year.

According to a new Challenger, Gray & Christmas CEO Turnover Report, the number of CEO changes across US sectors has slowed down as companies brace for a possible recession. This includes the healthcare sector, which was among the top sectors for turnover in recent months.

According to the report, only 3 hospital CEOs left their positions in October. This is a decrease from the 5 CEOs that made changes in September, and the 16 hospital CEOs who left their positions in October 2021.

Year to date, 85 hospital CEOs have left their jobs, either to serve in new positions or to retire. This is ten less than the 95 CEOs who made exits year to date in 2021.

"At the moment, the labor market is still tight, but companies are preparing for a recession. The leaders who are in place now are the ones companies have chosen to lead the company in at least the short-term," Andrew Challenger, senior vice president of Challenger, Gray & Christmas, Inc. said in a statement.

While hospitals and healthcare companies were among the leading sectors in CEO turnover in August (accompanied by technology firms and government and nonprofit entities), the numbers slowed in September and October.

"Job cut announcements are rising and hiring plans have slowed as we conclude 2022. The technology sector is seeing the bulk of these layoffs, and it is also where we are seeing a lot of CEO changes, but generally speaking, companies are holding onto their leaders," Challenger said.

The number of CEO changes at all US companies has slowed. In October the number of exits was 71, down 4% from the 74 announced in September. The number of exits is also 50% less than the 142 CEO exits made in October 2021.

Year to date, US companies have announced 1,040 CEO exits, an 8% decrease from the 1,133 CEOs who made exits through October 2021. The firm notes that this is the lowest January to October exit total since 2017, when 971 CEO exits were announced in that timeframe.