Second Quarter Executive Turnover – Rough Seas Ahead For The Economy?

The latest quarterly and monthly executive turnover results have once again raised some concerns for Liberum Research with regard to the American and Canadian economies.  Both second quarter and June executive turnover totals for CEOs, CFOs, C-level executives (board of directors down to VP level) and board of director changes have showed a significant drop from the previous monthly and year earlier totals.  The drop raises a concern that the North American economies could be in-store for a possible negative turn.  Executive turnover totals have always served as a leading economic indicator.  When turnover rises it usually portends future economic and job growth while declining turnover portends a potential decline in economic and job growth. Despite the most recent declining figures in all the four key executive categories, Liberum believes the latest drop in executive turnover totals is only a momentary blip in the growing turnover trend that has been in place now for the last two years.