CEO oustings on track for record
If the number of departures stays at current pace of seven per day, 1,570 will be gone by year's end, study reveals.

NEW YORK (CNN) -- With an average of about seven chief executive officers departing per business day, 2006 is poised to be a record-breaking year for ousted CEOs, according to data compiled by CNN and a study conducted by Challenger, Gray and Christmas.

If the trend continues at its current rate, more than 1,570 CEOs will lose their titles by year's end, up more than 200 from last year's record number of 1,322.

In just the first 11 days of October, the corporate world has seen a turnover of 36 CEOs, including the resignations announced Wednesday at Internet media company CNET (Charts), software maker McAfee (Charts), and Sovereign Bancorp Inc. (Charts) During the first 12 days of September, the boards of Bristol-Myers Squibb Co. (Charts), Ford Motor Co. (Charts) and Viacom Inc. (Charts) elected new CEOs to lead the corporations.

Former CNET CEO Shelby Bonnie resigned while former McAfee CEO George Samenuk retired, but both left their posts in relation to stock options back-dating probes, a growing trend in recent months. Earlier this week, Monster Worldwide Inc.'s (Charts) CEO Andrew McKelvey, a 39-year veteran with the company, resigned from his leading post, pinning partial blame for his move on an investigation into the company's stock options practices.

Since Oct. 1, five company executives - three CEOs, one chief financial officer and one president - have either resigned, retired or were fired from their posts after reports of option grants irregularities. Preliminary data compiled by Challenger, Gray and Christmas show nine companies entrenched in back-dating options scandals have lost their CEOs since January 2005.

According to the study, 32 CEOs have been fired from their jobs since the beginning of 2006, a third of them in September alone.

"It is rare for a CEO to be officially fired," said John Challenger, chief executive officer of Challenger, Gray and Christmas. "Boards may apply pressure or force a chief executive to leave, but they often allow the executive to announce his resignation, thus sparing his or her dignity. It takes a major infraction for a CEO to be publicly fired."

After more than 1,100 CEOs departed companies in 2000, the year the tech bubble burst and dot-com companies began imploding, the number of CEO turnovers began to gradually decrease year-by-year, dropping to 663 in 2004, but then jumping back up in 2005 setting the record to beat, according to CGL spokesman James Pedderson.

--from CNN's Katy Byron and Lauren Simonetti


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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.