Canadian employment rates held steady in June with full time job increases being offset with part time job losses. Public administration realized the most significant job increases. South of the border economic growth signs continue to be positive with the unemployment rate going down to 5.3% in the USA and job growth continuing to trend at 200,000+.
The biggest news was in the dramatic increase in overall C-suite turnover and especially in the turnover realized on Boards. The increased Board turnover – a whopping 140% - bodes well for future corporate performance. A recent Harvard study showed that companies that changed 3-4 Board members over a 3 year period outperformed their peers. Their analysis indicated that a modest amount of turnover tends to be a characteristic of the leadership and governance behaviors that drive shareholder value over time. That stands to reason: New directors bring fresh perspectives and new skills, and they may be more likely than established members to challenge orthodoxy and raise previously unasked questions. Similarly, Stanford University researchers found that Directors with excessive Board tenure and those that sit on multiple Boards can have an adverse effect on company performance. As a result, this increase in activity in Board turnover should have an overall positive effect.
June 2015 saw some significant increases over June 2014 in C-suite turnover. CEO turnover, year over year, increased by 3%, CFO turnover increased by 19% and overall C-suite turnover and Board turnover increased 73% and 140% respectively! Similarly, June 2015 saw increases across the Board over last month with CEO turnover increasing 10%, CFO turnover increasing by 1% and overall C-suite turnover and Board turnover increasing 48% and 77 % respectively.
June 2015 C Suite turnover activities break down as follows: