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More CEOs Join ‘Big Resignation’ Amid COVID-19 Exhaustion

 | Breaking News Updates

More CEOs Join ‘Big Resignation’ Amid COVID-19 Exhaustion

| Breaking News Updates | Usa news

The “big quit” isn’t just for rank-and-file workers. Corporate CEOs are quitting their jobs in significant numbers amid the coronavirus pandemic, according to jobs watchers.

Executive outplacement firm Challenger, Gray & Christmas reports that the number of CEOs who left their jobs in the fourth quarter of 2021 was 16% higher than the figure for 2020. In total, 106 CEOs left their jobs in December and 142 in October in 2021, the second highest year on record.

Maurice Cayer, who teaches industrial and organizational psychology at the University of New Haven, said the trend is being dominated by older executives who are doing well financially and want to trade their COVID-19-related stress for lesser roles. demanding or retirement.

“They’re making a lot of money, and a lot of them are baby boomers choosing to cash in,” Cayer said. “Some retire and leave the circuits, but many start their own businesses or join venture capital firms, where there is less pressure and great opportunities to continue growing their wealth and status.”

Additionally, corporate boards are “nervous” about the pandemic economy and human resources departments “are scrambling to come up with attractive stay packages to retain leaders and stop the bleeding,” the professor said. management.

According to the latest data from the US Bureau of Labor Statistics, a record 4.5 million Americans quit their jobs in November, accounting for 3% of the nonfarm labor force.

The bureau’s latest job postings and work participation survey found nearly 33 million Americans — one-fifth of the workforce — quit their jobs between April 2021 and November, leaving nearly 10.6 million job offers at the end of this month. The December figures will be released on February 1.

Meanwhile, the number of start-ups looking to hire executives skyrocketed last year. The US Census Bureau reported on January 12 that entrepreneurs filed 5.4 million new business applications in 2021, surpassing the record of 4.4 million set in 2020.

Wall Street trader Charles Mizrahi, founder of Alpha Investor, said the trend means “the next Amazon, Microsoft or Facebook could point to its founding date in 2022”.

“The exodus from the corporate world is another great example of capitalism at its best,” Mizrahi said. “A lot of people go out and become entrepreneurs and work for themselves.”

Startups increased last year as the number of departing CEOs accelerated. Jobs website reported openings for executives peaked at 40,681 in October 2021, compared to a monthly average of 22,072 in 2020. In May 2020, as COVID-19 lockdowns n It was only two months old, only 9,301 openings were listed.

“It’s many factors — burnout, the pandemic, school closures, the need to take stock of life,” ZipRecruiter chief economist Julia Pollak told NBC News.

Resignations last year included several longtime CEOs: Amazon’s Jeff Bezos, Twitter’s Jack Dorsey, Disney’s Bob Iger and American Airlines’ Doug Parker, who announced he would retire in March.

Resignations continued through 2022: the CEOs of men’s clothing company Bonobos, the Emergency Medical Services Authority which oversees paramedics, the LGBTQ nonprofit Utah Pride Center and the instant messaging app Signal have all quit in recent days.

Hans Dau, founder of Mitchell Madison Group, a business advisory firm, said CEOs find it easier to leave after increasing their wealth last year.

“The S&P 500 [stock market index] returned 31%, 18% and 29% in 2019, 2020 and 2021,” Mr. Dau said. “The Case-Shiller housing index is up more than 30% since 2019, with high-end markets faring much better. CEOs have significantly increased their wealth and have options.

Meanwhile, a November Gallup survey reported an increase in the number of managers reporting feeling burnt out “very often” or “always.” This includes CEOs, who are also managers.

“CEOs need to be productive, creative, cooperative, caring and respect the payroll. They must be leading scientists. But CEOs are also human,” said Christine McDaniel, senior fellow at George Mason University’s Mercatus Center free market think tank.

She added that the trend of CEOs quitting could reshape the US business landscape in the coming years.

“A lot of people are rethinking things as a result of the pandemic,” said Ms. McDaniel, a former US Treasury official.

For more information, visit The Washington Times COVID-19 resource page.

More CEOs Join ‘Big Resignation’ Amid COVID-19 Exhaustion

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