Back

C Suite Market Update - October 2015

October 2015

Once again the unemployment rate in Canada was little changed for the fifth consecutive month. In October, modest increases were realized in both the public and private sector with public administration, wholesale and retail trade and hospitality and food services seeing the most activity. The past few months have also seen a continued increase in hires of more mature workers (55+) and this has generally been the trend over the past year.

South of the border, the labor market bounced back in October as employers added 271,000 jobs and the U.S. unemployment rate dropped to a flat 5% according to the most recent U.S. Bureau of Labor Statistics report. The unemployment rate stands at its lowest mark since April 2008. Economists surveyed by Bloomberg estimated 182,000 new jobs were created, according to their median forecast. As a category, professional and business services saw the most significant increases with healthcare being the next most active category – with these two categories representing close to half of all hires in October.

HR executives are anticipating heightened activity in coming months as confidence in the U.S. labor market continues to grow. 69% of HR professional are reporting a confidence level not reported for several years, according to a recent Society for Human Resource Management ‘Jobs Outlook Survey’. With this forecast representing the highest level of optimism among HR professionals since the survey was launched in 2009 and a recent WorkplaceTrends.com survey that indicated that 1/3 of US workers polled said they planned to make a change within the next 6 months – the next half year should be very active indeed.

October 2015 C-suite turnover realized increases in 3 out of 4 categories as compared to October 2014. CEO turnover, year over year, decreased by -8% whereas CFO, overall C-Suite and Board changes saw increases of +10%, +18% and +6% respectively.

Month over month changes October 2015 v/s September 2015 saw the opposite with declines in 3 out of 4 categories. CFO changes realized the only increase +3% with declines in activity in CEO’s (-3%), overall C-Suite (-11%) and Board changes (-19%).
 
October 2015 C Suite turnover activities break down as follows:

  • CEO changes, -8%. A total of 195 changes with the largest number of changes occurring in drugs/biotech, banking, energy and manufacturing. Last month's changes occurred primarily in banking, energy and business services.
  • CFO changes, +10%. A total of 211 changes with the largest number of changes primarily occurring in drugs/biotech, energy and manufacturing . Last month's changes occurred primarily in energy, with drugs/biotech, business services, food/drink, health services, manufacturing and transportation.
  • Board of Directors, +6%. A total of 481 changes with the largest number of changes occurring in drugs/biotech, banking and metals/mining. Last month saw changes primarily in drugs/biotech, banking, manufacturing and metals/mining.
  • Overall C suite, +18%. A total of 1670 changes with the largest number of changes occurring in drugs, banking and energy. Last month's changes were consistent with this month occurring primarily in drugs, banking and energy.