2017 brought less hospital CEO turnover than 2016: 7 findings

Throughout 2017, 107 hospital CEOs left their posts, which is a 31 percent decrease from the 154 departures in 2016, according to a report released Jan. 10 by Challenger, Gray & Christmas, a global outplacement consultancy and executive coaching firm.

Here are seven report insights.

1. A total of 1,160 CEOs across 27 industries stepped down in 2017. This is the lowest annual total since 2004, when there were just 663 departures.

2. John Challenger, CEO of Challenger, Gray & Christmas, attributes the lower number of CEO departures in 2017 to uncertainties in the political realm.

"The uncertainty surrounding the tax and healthcare bills, coupled with a tight labor market, kept companies from making any major leadership changes in 2017," he said.

3. The hospital industry saw 107 CEO departures in 2017. Only three of 27 industries saw more departures in 2017: the government/nonprofit industry saw 191 CEO departures; the financial industry saw 119; and the services industry saw 110.

4. Thirty percent of CEOs who left their roles stepped down into other roles, 28 percent retired and 15 percent resigned in 2017.

5. In 2017, 11 CEOs left their posts due to sexual misconduct allegations, a 266 percent increase from 2016.

"The #MeToo movement, so inspiring to women and men who have endured abuse, particularly at work, also inspired companies. Not only are many companies reevaluating their sexual harassment policies and procedures, but many are operating under a zero-tolerance policy, especially regarding the heads of their organizations," said Mr. Challenger.

6. The pharmaceutical industry had 47 CEO departures in 2017, which is 10 more than in 2016.

7. California had the highest number of CEO changes in 2017, with a total of 139, followed by Texas, with 105 departures in 2017.

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