Heading: 2019 Records a High Rate of CEO Exits

In 2019, the corporate world has been marked by a significant rise in CEO departures, particularly due to professional misconduct allegations. So far this year, fourteen CEOs have stepped down from their positions, representing a 12% increase compared to 2018.

Among the high-profile exits are Mark Parker from Nike, who is stepping down after serving as CEO since 2006, as well as CEOs from Express, Inc., Bed Bath & Beyond, Under Armour, and Calvin Klein. The current trend suggests that 2019 could surpass the previous full-year high of 1,484 CEO departures, a record set in 2008.

The retail sector, in particular, has been hit hard. This year, the number of store closures in the U.S. has surpassed 9,000, a 60% increase compared to 2018. Companies like Bed Bath & Beyond, Kate Spade, and Away have recently replaced their CEOs as part of a wider industry turnaround attempt.

Bed Bath & Beyond's regime change signals an entire overhaul within the company, with six other senior executives also leaving their posts. The departure of Bed Bath & Beyond's former CEO, Steven Temares, followed pressure from activist investors. His successor, Mark Tritton, has announced further changes, including the departure of more senior executives.

Under Armour is currently under investigation by the Securities and Exchange Commission and the Department of Justice for its accounting practices. The ongoing investigation may impact the company's future leadership and operations. It's suspected that the period of store closures could extend through the next two years.

Interestingly, in 2019, external replacements have surpassed internal ones for the first time since 2013 in filling CEO roles. One such example is Dr. Dirk Wössner, who was announced as the new external CEO succeeding Frank Gotthardt at CompuGroup Medical SE in the USA. The CEO transition is planned to be completed by January 1, 2021, after Gotthardt had led the company for 33 years.

However, not all departures this year have been due to misconduct or investigations. In 2018, a class action lawsuit was filed against Nike alleging discrimination against female employees. While Mark Parker is stepping down, Nike has not disclosed the reasons for his departure.

The decrease in CEO departures in November 2019, with 148 departures, compared to October, according to Challenger, Gray & Christmas, Inc.'s monthly report on chief executive turnover, may signal a slowdown in this trend. Nevertheless, the retail sector continues to face a challenging period, with bankruptcies and industry turnarounds on the horizon.