Spitzer Is Not Alone

Speaking of chief executive resignations....

The declining economy is taking its toll on the occupants of corner offices in corporate America, Challenger, Gray & Christmas reports today.

The good news, though, is that the pace of executive defenestration is slowing.

The global outplacement consultancy said it counted 114 C.E.O. departures in February. That is down from 134 in January and down from 127 in February 2007.

While welcome, the slowing pace of C.E.O. exits is not significant, Challenger Gray spokesman James Pedderson said.

"We always see some fluctuation from month to month," Pedderson said. "If we see, after a few months, fewer than 100 exits, then I might think we're seeing a dip."

What's telling about last month, added Challenger Gray chief executive John A. Challenger, were the circumstances behind many of the departures.

"We continue to see C.E.O.'s resigning under pressure, providing more evidence that the weakened economy continues to impact the executive suite," Challenger said.

From the agency's standpoint, more than 100 executive resignations in a month is notable. They have been tracking departures of C.E.O.'s since 1999. On average, there have been more than 100 exits per month since 2005.

Of the 114 departures, 40 percent were resignations. Six attributed the chief executive's departure to poor financial performance.

"It is likely that other resignations were also related to performance issues," notes Challenger, "but companies often spare their former leaders from public admonishment, particularly in economic slowdowns, when profitability can be damaged regardless of who holds the C.E.O. post."

Sharper Image, which filed for bankruptcy in February, hired Ron Conway to replace Steven Lightman, who had been at the helm for less than a year.

Of late, a smattering of "boomerang" C.E.O.'s — past leaders who return to revive their companies — have taken over in several businesses. In 2007, for example, Dell asked Michael Dell to return.

In February, Jay Brown returned to MBIA, which like other monoline insurers, has been struggling to maintain its triple-A credit rating after being hit hard by the credit crisis.

Bradley Mallory became C.E.O. of Michael Baker Corp. for Richard Shaw, chair of the board, who has returned three times as an interim C.E.O. for the construction company. The 80-year-old Shaw underwent a heart-valve replacement surgery last fall.

And don't forget last month's memorable return of Howard Schultz to Starbucks, as the coffee wars escalate to beyond boiling.

by Jennifer Lai