Cold Comfort for Stan O'Neal

Set aside Merrill Lynch's rather hamfisted defenestration of its chairman and chief executive E. Stanley O'Neal this week, and the long-awaited retirement of Richard D. Parsons at Time Warner. October is actually shaping up as not such a bad month for the lucky occupants of corner offices across the country.

Chief executive turnover so far this month is running about 20 percent below the pace of the same period a year ago—97 in October 2007, compared with 122 in October 2006, according to Challenger, Gray & Christmas, the Chicago outplacement firm.

For the year to date, C.E.O. turnover has also declined, though not as rapidly as it has this month. Through the first 10 months of 2007, 1,140 chief executives have quit. That is 7.6 percent fewer than in at this point last year, Challenger, Gray said.

C.E.O.'s should not relax just yet, though. One particular chief executive— John A. Challenger, chief executive officer of Challenger, Gray & Christmas—says ticking subprime time bombs at other companies and the resulting credit crunch may yet claim more corporate leaders.

"We have seen several high-ranking executives affected by the credit crisis," Challeger says. "However, the impact appeared to be isolated to divisions within the financial institutions directly related to mortgage lending or mortgage-backed investments. O'Neal is the first C.E.O. to fall as a result of the turmoil ignited by the housing slump, but he may not be the last."

If he's heard anything specific, he's not saying. But you know who you are.

"Other companies that suffered major losses stemming from overexposure to risks in the housing market may start questioning their C.E.O.'s about his or her oversight and who is ultimately responsible for the damage," Challenger says.

by Mark Stein