CEO departures up in December, Internet leads the way

NEW YORK: The number of chief executives leaving office jumped 85 per cent in

December versus a year ago, continuing the torrid pace of departures in 2000,

said a report released Thursday by recruitment firm Challenger, Gray &

Christmas Inc.

In December, 113 CEOs vacated their posts - marking the fifth consecutive

month of more than 100 departures. Last year, 61 CEOs left in December.

More than half of the total 1,079 CEO changes this year have been announced

over the last five months, the report said.

Chief executives of Internet companies led December's list, accounting for 16

per cent of total departures. CEO changes in the consumer goods industry came in

second, followed by the computer software and services, financial services and

industrial products industries.

"These sectors may continue to see high chief executive turnover in

light of what will most likely be categorized as a lackluster holiday shopping

season," said John Challenger, chief executive of Challenger, Gray &

Christmas.

One of the more recent casualties was Bill Larson, chairman and chief

executive of computer-security software maker Network Associates Inc. The

company, on Tuesday, warned of revenue shortfalls and said Larson would step

aside, along with two other top executives.

Also Tuesday, Magic Software Enterprises said its CEO, Jack Dunietz, was

leaving after the company announced fourth-quarter earnings and revenues would

fall below targets.

Financial services group ING Groep Inc. said David Robbins, chief executive

of ING Barings, resigned in connection with an announcement that ING would

review its investment banking operations.

Most of the 113 CEO departures in December were labeled resignations, 32 were

unspecified and 19 were retirements, the report said. The remaining

announcements said CEOs had "stepped down," been

"succeeded," taken a "new position within the company," or

simply "left."

(C) Reuters Limited 2000.