CEO departures drop slightly in 2007

CHICAGO, Jan. 7 (UPI) -- The number of U.S. chief executives leaving their posts in 2007 declined from the record 1,478 in 2006, but not by much, an outplacement company said Monday.

For the third straight year, the number of monthly departures averaged more than 100, the Turnover Report released by Challenger, Gray and Christmas Inc. reported. American companies announced 1,356 CEO changes last year, representing an 8.3 percent decline from the previous year.

The subprime mess claimed only five CEOs in 2007, which the international outplacement firm based in Chicago said was surprising.

"There is no doubt that CEOs are under more scrutiny than in the past, but the lack of turnover resulting from the credit crisis reveals how sheltered they remain," John Challenger, chief executive officer of Challenger, Gray and Christmas, said in a news release.

The healthcare sector, which includes makers of medical equipment and supplies and health providers, had the highest turnover for the third consecutive year, the survey said.

"As for 2008, if the economy continues to slow or if we sink into recession, we could see another year of heavy, if not record CEO departures, as companies make leadership adjustments to traverse the downturn," Challenger said.