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CEO Departures at U.S. Companies Hit a Record This Year

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CEO Departures at U.S. Companies Hit a Record This Year

CEO Turnover Reaches Record High in 2024

U.S. public companies announced 327 chief executive changes this year through November, according to outplacement firm Challenger, Gray & Christmas. This marks more than in any other year since at least 2010, when the firm first started tracking the turnover. It’s also an 8.6% increase from last year.

Turnover included CEOs at U.S. companies that have long dominated their industries — like Boeing, Nike, and Starbucks. The pace of change points to those companies’ customers, investors, hedge funds or boards growing impatient with sales slumps or strategic missteps in an otherwise strong economy when consumers proved they were willing to spend.

CEO Changes: A Sign of Impatience

The cost of capital, the speed of transformation, is creating faster turnover, said Clarke Murphy, managing director and former chief executive of Russell Reynolds Associates, a leadership advisory firm. Murphy said it was easier to stand out for poor performance in an otherwise strong market.

"In years of 20-plus-percent S&P [500] returns two years in a row, any company that’s significantly underperforming, the spotlight has been on, and boards of directors moved faster than they might have moved five or seven years ago," Murphy said.

Major U.S. CEO Changes

Here are some of the major U.S. CEO changes so far this year:

Intel

The semiconductor company ousted CEO Pat Gelsinger earlier this month, nearly four years after he was appointed to turn the chipmaker around and better compete with rivals. Intel’s stock price and market share had collapsed as the artificial intelligence wave boosted chipmaker Nvidia while Intel struggled to crack into the business. A successor hasn’t yet been named.

Boeing

The aerospace giant announced former CEO Dave Calhoun’s departure in March, part of a broad executive shake-up. It came nearly three months after an unsecured door plug blew off midair from a nearly new Boeing 737 Max 9 operated by Alaska Airlines, plunging the company back into a safety crisis after years of problems across its defense and commercial aerospace business, frustrating the leaders of some of its biggest airline customers. Calhoun himself was appointed in the last days of 2019 to succeed ex-CEO Dennis Muilenburg, who was ousted for his handling of the aftermath of two fatal crashes of Boeing’s 737 Max in 2018 and 2019.

Starbucks

With sales shrinking in its biggest markets, Starbucks poached Chipotle Mexican Grill star CEO Brian Niccol to turn around the coffee chain’s fortunes, replacing Laxman Narasimhan. The company’s shares soared nearly 25% when Niccol’s appointment was announced in August.

Nike

The shoemaker replaced CEO John Donahoe in September with Elliott Hill, a company veteran who started as an intern at Nike in the 1980s. Donahue had helped Nike grow sales since he took the helm, from $39.1 billion in fiscal 2019 to $51.4 billion in fiscal 2024, but growth eventually stagnated after he moved away from wholesale partners like Foot Locker and Macy’s and lost sight of innovation.

Peloton

A darling of the pandemic, the home fitness equipment company had struggled since return-to-office mandates started rolling in. In 2022, Peloton brought in former Spotify and Netflix executive Barry McCarthy to take over for founder John Foley, but he stepped down in May after the company announced yet another restructuring. In October, Peloton announced Peter Stern, a former Ford executive and Apple Fitness+ co-founder as its third CEO. Stern has a background in growing subscription-based services, and Wall Street is hopeful he’ll bring Peloton to profitability by cutting costs and focusing on its high-margin subscription revenue.

Kohl’s

Kohl’s CEO Tom Kingsbury is stepping down on Jan. 15, the off-mall department store said late last month, and he will be succeeded by Ashley Buchanan from crafting mecca Michaels. Kohl’s has seen its comparable store sales, a key metric for retailers, drop in each of the past 11 quarters, and its stock price slumped.

WW International

The weight loss company formerly known as Weight Watchers announced in September that CEO Sima Sistani would step down immediately. WW International has struggled, with shares falling more than 80% this year. It tired to reorient itself under Sistani’s tenure to include a platform that links customers with popular weight loss drugs.

Conclusion

The pace of CEO turnover is accelerating, driven by the cost of capital, the speed of transformation, and the pressure to deliver results in an otherwise strong economy. As companies face challenges in an increasingly competitive landscape, boards of directors are holding CEOs accountable for underperformance.

FAQs

Q: Why is CEO turnover increasing?
A: CEO turnover is increasing due to the cost of capital, the speed of transformation, and the pressure to deliver results in an otherwise strong economy.

Q: Which industries are most affected by CEO turnover?
A: Consumer-focused companies, which are more susceptible to changing tastes and trends, are generally more affected by CEO turnover than industries like oil and gas or utilities, which tend to have internal and longer-tenured CEOs.

Q: What are the consequences of CEO turnover?
A: CEO turnover can have significant consequences, including disruption to the company’s strategy, loss of key talent, and a potential impact on the company’s stock price.

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Global Trends and Politics

Political Polarization: A Threat to Workplace Diversity and Inclusion

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Political Polarization: A Threat to Workplace Diversity and Inclusion

The Growing Concern of Political Impacts on Workplaces

In today’s increasingly polarized world, the divide between political ideologies is not only affecting our personal lives but also seeping into the workplace. Political polarization is becoming a significant threat to workplace diversity and inclusion, leading to a toxic work environment, decreased productivity, and a lack of trust among colleagues. As the lines between personal and professional lives continue to blur, it’s essential to understand the impact of political polarization on workplaces and explore strategies to mitigate its effects.

The Rise of Political Polarization

Political polarization is not a new phenomenon, but its intensity and reach have increased significantly in recent years. The proliferation of social media, the 24-hour news cycle, and the rise of partisan media outlets have created an environment where people are more likely to be exposed to and influenced by extreme views. This has led to a growing sense of mistrust and division among individuals, which is now being reflected in the workplace.

The Impact on Workplace Culture

Political polarization is having a profound impact on workplace culture. It’s creating an environment where employees feel uncomfortable discussing politics, sharing their opinions, or even wearing clothing that reflects their political beliefs. This has led to a sense of silence and fear, as employees are hesitant to express themselves for fear of being judged, ostracized, or even fired.

Consequences of Political Polarization in the Workplace

The consequences of political polarization in the workplace are far-reaching and can have severe consequences for employee well-being, productivity, and job satisfaction. Some of the most significant consequences include:

Decreased Productivity

When employees feel uncomfortable or unsafe expressing their political beliefs, it can lead to decreased productivity and motivation. This can result in lower quality work, missed deadlines, and a general sense of disengagement.

Increased Stress and Anxiety

The pressure to conform to a particular political ideology or avoid discussing politics altogether can lead to increased stress and anxiety. This can manifest in physical symptoms such as headaches, fatigue, and sleep disturbances.

Decreased Job Satisfaction

When employees feel that their political beliefs are not valued or respected, it can lead to decreased job satisfaction and a sense of disconnection from the organization. This can result in turnover, absenteeism, and a general sense of dissatisfaction.

Strategies for Mitigating the Effects of Political Polarization

While political polarization is a complex and challenging issue, there are strategies that organizations can implement to mitigate its effects and promote a more inclusive and diverse workplace. Some of the most effective strategies include:

Encourage Open Communication

Create an environment where employees feel comfortable discussing politics and sharing their opinions. This can be achieved through regular town hall meetings, anonymous feedback mechanisms, and open-door policies.

Foster a Culture of Respect

Promote a culture of respect and inclusivity, where employees feel valued and respected regardless of their political beliefs. This can be achieved through diversity and inclusion training, anti-bullying policies, and a zero-tolerance approach to discrimination.

Provide Resources and Support

Provide resources and support for employees who may be experiencing stress, anxiety, or other mental health issues related to political polarization. This can include employee assistance programs, mental health days, and access to counseling services.

Conclusion

Political polarization is a significant threat to workplace diversity and inclusion, leading to a toxic work environment, decreased productivity, and a lack of trust among colleagues. By understanding the impact of political polarization on workplaces and implementing strategies to mitigate its effects, organizations can promote a more inclusive and diverse workplace. It’s essential for leaders to prioritize open communication, foster a culture of respect, and provide resources and support for employees to thrive in a rapidly changing world.

FAQs

Q: How can I promote a culture of respect in the workplace?

A: Promote a culture of respect by encouraging open communication, providing diversity and inclusion training, and having a zero-tolerance approach to discrimination.

Q: What are some strategies for mitigating the effects of political polarization in the workplace?

A: Strategies for mitigating the effects of political polarization include encouraging open communication, fostering a culture of respect, and providing resources and support for employees.

Q: How can I support employees who may be experiencing stress or anxiety related to political polarization?

A: Support employees by providing employee assistance programs, mental health days, and access to counseling services.

Q: What are some signs that political polarization is affecting the workplace?

A: Signs that political polarization is affecting the workplace include decreased productivity, increased stress and anxiety, and a lack of trust among colleagues.

Q: How can I address political polarization in the workplace without taking a political stance?

A: Address political polarization in the workplace by focusing on promoting a culture of respect, inclusivity, and open communication, rather than taking a political stance.

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Global Trends and Politics

Stellantis Chairman Details U.S. Investments for Jeep, Ram to Boost Production and Capacity

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Stellantis Chairman Details U.S. Investments for Jeep, Ram to Boost Production and Capacity

Stellantis Chairman John Elkann Outlines Plans for U.S. Investments

Stellantis Chairman John Elkann detailed several upcoming plans for U.S. investments during a meeting with President Donald Trump before his inauguration.

The plans, outlined in an internal message to U.S. employees, include:

  • Creating 1,500 jobs
  • Reopening a plant in Illinois to build a new midsize pickup truck in 2027
  • Building a new version of the Dodge Durango SUV at a Detroit plant instead of Mexico
  • Adding more support for plants in Toledo, Ohio, and Kokomo, Indiana

According to Antonio Filosa, head of Stellantis’ North American operations, "John told the President that building on our proud, more than 100-year history in the U.S., we plan to continue that legacy by further strengthening our U.S. manufacturing footprint and providing stability for our great American workforce."

Leaders from the "Big Three" automakers in Detroit, including General Motors and Ford Motor, have also separately spoken or met with Trump.

Additional Investments

The investments for Ohio include "additional technologies and strong product actions for Jeep Wrangler and Jeep Gladiator" and "more components critical" to supporting facilities. Indiana will see the production of a new four-cylinder engine.

Filosa said, "Our plans, focused on increasing market share and growing sales volume, entail a multibillion-dollar investment in our people, great products, and innovative technology, all here in the U.S."

Previous Expectations

Some of the Stellantis’ announcements, such as building the midsize pickup truck in Illinois, were previously expected under a contract with the United Auto Workers union. However, they had come into question under strategic decisions made by former Stellantis CEO Carlos Tavares.

UAW President Shawn Fain hailed the announced plans, saying, "This victory is a testament to the power of workers standing together and holding a billion-dollar corporation accountable. We’ve shown that we will do what it takes to protect the good union jobs that are the lifeblood of places like Belvidere, Detroit, Kokomo, and beyond."

Conclusion

Stellantis’ plans for U.S. investments aim to strengthen its manufacturing footprint and provide stability for its American workforce. The company’s additional investments in Ohio and Indiana will focus on innovative technologies and strong product actions, solidifying its position in the market.

FAQs

Q: What are Stellantis’ plans for U.S. investments?
A: The company plans to create 1,500 jobs, reopen a plant in Illinois to build a new midsize pickup truck in 2027, build a new version of the Dodge Durango SUV at a Detroit plant instead of Mexico, and add more support for plants in Toledo, Ohio, and Kokomo, Indiana.

Q: What is the purpose of these investments?
A: The investments aim to strengthen Stellantis’ manufacturing footprint and provide stability for its American workforce.

Q: Who is leading these investments?
A: Stellantis Chairman John Elkann is overseeing the investments amid a search for a new CEO following the departure of former CEO Carlos Tavares.

Q: What is the impact of these investments on the automotive industry?
A: The investments will contribute to the growth and development of the automotive industry in the United States, creating new job opportunities and driving innovation.

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Global Trends and Politics

United Airlines 4Q 2024 Earnings

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United Airlines 4Q 2024 Earnings

United Airlines’ Strong Earnings, Growth Outlook Boosts Stock

Gary Hershorn | Corbis News | Getty Images

United Airlines forecast first-quarter earnings that surpassed analysts’ estimates as the carrier seeks to grow earnings again in 2025 thanks to strong travel demand.

Q1 Earnings Forecast

The airline said Tuesday that it expects to earn an adjusted 75 cents to $1.25 in the first three months of the year, above the 54 cents analysts had expected, according to LSEG estimates.

Stock Performance

United’s stock is up more than 180% over the past 12 months as of Tuesday’s close, more than any other U.S. carrier.

Q4 Results

Here is what United reported for the fourth quarter compared with what Wall Street expected, based on estimates compiled by LSEG:

  • Earnings per share: $3.26 adjusted vs. $3.00 expected
  • Revenue: $14.70 billion vs. $14.47 billion expected

Full-Year 2025 Outlook

For full-year 2025, United expects to grow adjusted earnings to $11.50 to $13.50, in line with expectations of about $12.82, according to LSEG.

Industry Trends

United and rival Delta have benefitted from strong demand for pricier seats like in business class, international travel and their massive loyalty programs. Delta’s CEO Ed Bastian earlier this month said he expects 2025 to be the carrier’s “best financial year in our history.”

Q4 Results Details

United reported a $985 million profit for the fourth quarter, up 64% over last year, on $14.70 billion in revenue, which was up about 8% from a year earlier. Adjusting for one-time items, United reported $3.26 a share for the fourth quarter, also ahead of expectations.

Loyalty-Program Revenue

Loyalty-program revenue, as well as international, domestic and basic economy-class revenue all rose from a year earlier and unit revenue, which measures pricing power, turned positive over the same quarter of 2023.

CEO Comments

United CEO Scott Kirby said he was upbeat about President Donald Trump’s new administration and said that airlines need improvements to air traffic control, echoing sentiments from other industry CEOs like Delta’s Bastian.

Conclusion

United Airlines’ strong earnings and growth outlook are a testament to the carrier’s ability to adapt to changing market conditions and capitalize on strong demand for air travel. As the airline industry continues to evolve, it will be interesting to see how United and its competitors respond to emerging trends and challenges.

FAQs

Q: What is United Airlines’ Q1 earnings forecast? A: United expects to earn an adjusted 75 cents to $1.25 in the first three months of the year.

Q: How does United’s stock performance compare to other U.S. carriers? A: United’s stock is up more than 180% over the past 12 months, more than any other U.S. carrier.

Q: What is United’s full-year 2025 earnings outlook? A: United expects to grow adjusted earnings to $11.50 to $13.50 in 2025.

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