WELCOME BACK YOUR CHEDDAR
BUSINESS. THE NUMBER OF CEOS
SAYING GOODBYE IS ON TRACK FOR
A RECORD YEAR WITH 172 LEAVING
IN OCTOBER ALONG SOME OF THE
BIG COMPANIES INCLUDE AS A
P NIKE UNDER ARMOR AND A
SERVICE NOW KIND OF A GAME OF
MUSICAL CHAIRS AMONG THE CEOS
OF THOSE COMPANIES AND IT NEVER
ALREADY HAS BIG NAMES INCLUDING
MCDONALD'S
NOW FOR CEO STEVE EASTERBROOK
JOINING US NOW IS ANDREW
CHALLENGER IS THE VICE
PRESIDENT OF CHALLENGER, GRAY
AND CHRISTMAS AND ARE SO GREAT
TO HAVE YOU ON THE SHOW WIDE
OCTOBER SHAPE UP TO BE SUCH A
BIG MONTH FOR CEO DEPARTURES.
>> YEAH IT REALLY WAS A BIG
MONTH THAT ACCIDENT
HIGHEST TOTAL RECORD THE OTHER
PART IS THAT RECORDED FOR A
SINGLE MONTH. AND WE STARTED
TRACKING THE DATA 1000 INTO
THAT INCLUDE
2008 NO REASON TO ARE MULTIPLE
AND THERE'S NO SIMPLE ANSWER
PART OF IT
IS THAT THE MARKET HAS BEEN
GROWING AFTER 10 YEARS THE
ECONOMY HAS BEEN GROWING
AND IT FEELS LIKE SOME SEE AS A
TAKING THAT OPPORTUNITY WHEN
THE CREDIT COMPANIES ARE ON TOP
TO STEP DOWN PUT INTO PLACE
THEIR NORMAL
SESSION PLANNED THAT THAT TEND
TO BE THE BULK OF BUT OF COURSE
WE'VE SEEN A BIG
UPTICK AND HE IS DEPARTING FOR
PROFESSIONAL MISCONDUCT AT WITH
SCANDALS SURROUNDING AND THEIR
DEPARTURE
WE RECORDED THAT LIT AND THAT
LEFT FOR THAT REASON IN OCTOBER
AND THAT IS CERTAINLY
>> IT'S SIMPLE A PEACEFUL
SCREENS THAT OUR PRODUCER
AMANDA MADE IT JUST GOES
THROUGH RIGHT. THE RECENT
EXECUTIVE DEPARTURES THAT WE'VE
SEEN OBVIOUSLY.
DEPARTURES A VARIETY OF REASONS
AND REBUILT WILL GO THROUGH
SOME OF THE NAMES OF COURSE,
KEVIN PLANK THE FORMER SEATTLE
BUT HE SAYS
LEE MEAN RIGHT AS UNDER
ARMOUR'S C E O I HE'S GOING TO
BE A
MARK PARKER AT NIKE IS GOING TO
BE OUT THOSE WERE ANNOUNCED
JUST LAST MONTH A BILL
MCDERMOTT SAPD AND JOHN DONAHOE
SERVICE NOW AND THEN IN OCTOBER
OBVIOUSLY THE MOST RECENT ONE
THAT WE HEARD IS STEVE
EASTERBROOK OVER THERE
AT MCDONALD'S, YOU MENTIONED,
AND AGAIN EVERY CASE IS
DIFFERENT BUT YOU MISCONDUCT AS
A REASON THAT SOME OF THESE
CEOS ARE LEANING
IN TRUE IS THERE ANOTHER TIME
THAT YOU SEEN IN YOUR DAY,
YEAH THAT IS SHOWN THAT WHERE
WE'VE SEEN A SIMILAR WAY RIGHT
WHERE WE ARE CEOS HAVE BEEN OUT
BECAUSE OF MISCONDUCT JUST
ABOUT TO A SIMILAR EXTENT.
>> WE HAVEN'T SEEN ANYTHING
QUITE LIKE THAT WHEN WE LOOK AT
JUST THE DATA AROUND
THE DEPARTING.
>> FOR PROFESSIONAL MISCONDUCT
AND THIS IS THE HIGHEST OF THE
PART IS THAT THAT
WE RECORDED IT FEELS LIKE A
CORPORATE BOARD ARE TAKING INTO
ACCOUNT THAT
PERSONAL CONDUCT OF THE IOS IN
A DIFFERENT WAY THAN THEY EVER
HAD IN THE PAST
PROFESSIONAL MISTAKE. RBA A
VERY
QUICKLY HIGHLIGHTED AND ACTION
IS BEING TAKEN UP ON THE PIOS
BY CORPORATE BOARD BY
SHAREHOLDERS. AND WE'RE ALSO
SEEING AND A JUST AND GENERAL
EXPECTATION OF TREMENDOUS
GROWTH DURING THAT TIME
PERIOD WHEN WHEN THE LONGEST
EXPANSION IN AMERICAN HISTORY
WITH A LOT OF CORPORATE BOARDS
SAY YOU KNOW THE COMPANY'S
GROWING BUT NOT
THAT AND WE WOULD EXPECT DURING
THIS ENVIRONMENT AND SO YOU'RE
OUT.
>> UNDETERRED MISCONDUCT POINT
TO.
IS MISCONDUCT HAPPENING MORE
NOW OR IS IT JUST LOOKED AT
VERY DIFFERENTLY OVER THE LAST
COUPLE OF YEARS EXPECTATIONS
HAVE SHIFTED WHAT IS OK AND
WHAT IS NOT OK. FOR THESE
EXECUTIVES TO DO HAS COMPLETELY
CHANGED.
>> YEAH IN SOME WAYS IT'S HARD
TO KNOW IF
ACTUAL MEN KIND OF HAS RECENTLY
IT'S IT SEEMS MORE
LIKELY THAT THE CULTURE IS
TAKING A CLOSER LOOK AT
CEOS ACTION AND PEOPLE ARE
GETTING ON SOCIAL MEDIA
DISCUSSING THIS YOU THINK
PICKED UP IN AND THE MEDIA IN A
DIFFERENT WAY, AND IT JUST
FEELS LIKE
REPORT MAYBE THEY THEY THEY
FINALLY FEEL LIKE THEY HAVE THE
TO TAKE ACTION ON
THAT ARE HAVING THE PERSON
THAT CONDUCT AND REMOVE THEM
FROM NOT IT DOES SEEM TO BE A
CULTURAL MOMENT.
>> INTO THAT WE DO SEE A BIT OF
MUSICAL CHAIRS HAPPENING RIGHT
IN THE C SUITE SO EVEN THOUGH
CEOS ARE LEAVING THEIR
CURRENT POSITIONS. THERE JOIN
COMPANIES AS THE CEOS OF THOSE
FIRMS AND SO EXPLAIN THAT TURN
THAT WERE SEEN AND WHAT YOU
OBSERVE ON YOUR END.
>> YEAH WE HAVE SEEN A NUMBER
OF OF
HIGH PROFILE HE OWES AND MOVE
IT TO ANOTHER COMPANY WHERE
MAYBE THERE'S STILL THAT ARE
MORE APPLICABLE WERE ALSO AND
A MOMENT, 10 YEARS
INTO A TO GROWTH CYCLE HERE
WHEN YOU GET PA TECHNOLOGY THAT
TIME TO WE'RE URGING COME ON
LINE AND IN CASES LIKE AND
MAYBE A NIKE WHERE AND THEY'RE
TRYING TO MOVE INTO
A NEW AND A DIGITAL APPAREL AND
IN THE NEWS, THERE'S GOOD
REASON
TO BELIEVE AND THEN THEY WANTED
A NEW C E O AND THERE THAT KIND
OF COMING WITH A NEW TRAIN
CHANGING
STRATEGY AND THAT DEAL WENT ON
WORKING ANOTHER BUT FOR THE
MOST PART WE'RE SEEING THE
OTHER STEPPING DOWN MOVING
CHAIRMAN ROLE
THERE STILL AT THE
ORGANIZATION, THEY'RE JUST NOT
IN A THE CEO POSITION.
>> AND A LOT OF THE CASES OF
RECENT
DEPARTURES WERE
THE SEEING A THESE MEN BEING
REPLACED BY OTHER MEN AND WE'RE
STILL NOT SEEING A LOT ABOUT
JEN THE PARODY OR ANYTHING
CLOSE TO GENDER PARITY WITHIN
THE
C SUITE OF US COMPANIES ANY
IDEA IF THAT WILL START IN THE
NEXT FEW YEARS ARE ANY
INDICATION.
>> YEAH THERE'S A GOOD
INDICATION WE TRACKED THE
TYPICALLY THE WOMEN REPLACEMENT
RATE OF BEEN TRACKING THAT FOR
ABOUT 50 SENIORS IN 2010 THE
REPLACEMENT WENT RATE THAT WERE
WOMEN WITH ABOUT
12% THAT 22% SO IS THAT A AND
10% ERIC AROUND
10%. IT
STILL SHOCKINGLY SMALL NUMBER I
THINK THAT TO MOST PEOPLE WHEN
THEY WHEN THEY FIRST TAKE A
LOOK AT IT AND HOPEFULLY A SIGN