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And Don't Let the Door Hit You...
Exit doors are increasingly widening for embattled C.E.O.'s, a new report shows, as they face mounting pressure to step down amid widespread economic turmoil.
C.E.O. departures spiked nearly 20 percent in March from a year ago, according to report by Challenger, Gray & Christmas, an outplacement consultancy. And the March turnover was 7.8 higher than the February figures.
"The downturn in the economy is forcing boards to look more closely at their leadership to ensure that the right person is in place to guide the company through the rough patch," said John A. Challenger.
One high profile resignation came from David J. McIlquham, the former C.E.O. of mattress maker Sealy Corp. In a vague statement, Sealy said "it is in the best interest of the company to seek new leadership to achieve the company's long-tem goals and initiatives."
The announcement came after Sealy announced weak domestic sales in February, which caused shares to nosedive. Days later, Moody's Investors Service issued a "negative" outlook for the company, saying it expects Sealy performance to weaken further.
Ken Stern, the former C.E.O. of National Public Radio, also resigned this month after 10 years at the helm. An N.P.R. board statement said Stern left by "mutual agreement" but it did not give a reason for his departure.
Resignation is the leading cause for departures, according to the study, accounting for 119 of the 371 C.E.O. departures this year. Retirements followed with 96, while 32 C.E.O.'s found positions with other companies.
"While 13 C.E.O.'s were officially fired, many of the 119 resignations during the first three months of 2008 were probably less than voluntary," said Challenger.
by Alfonso Serrano F.
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