Whenever corporations are experiencing a downturn in the economy, or they cannot meet their earnings estimates, obviously heads will roll. Often it is not the fault of the CEO, but some economic issue in their industry. Right now as we are in the fourth quarter of 2012 we see that many of the larger corporations cannot meet their Wall Street earnings estimates, and many have reported losses. Shareholders are not happy, and we will see a bit of CEO turnover.Other companies which managed to make a profit in the third and fourth quarter may have their star CEOs step down for a while, and allow someone else to take the heat of the obvious negative trends as we go into a recession in 2013, as the CBO or Congressional Budget Office has predicted. A new person will come in, deal with the downturn make deep cuts like “Chainsaw Al”, become the fall guy or fall gal, then a turn-around CEO will be appointed, and once they are completed they will leave too. Lastly, the Star CEO will return, step back into the picture, and then run the company as the economy is returning without tarnishing their leadership image.This is an old trick that many companies have used over the years, and they probably teach it at Harvard Business School. Anyone who observes these trends through upticks of the business cycle and recessions knows this, it’s no secret, and yet often the union employees of large corporations and those on Wall Street don’t seem to understand or observe this pattern.They should, it seems to be corporate executive management 101. Those who are truly good at their jobs and are very protective of their career always play it safe and exit, making some excuse right before the fall. Then they step back into the glory days during economic growth cycles.The reality is we are in a time of transition in our economy, and the profit margins which were seen in 2011 and 2012 up until the third and fourth quarter cannot be repeated as we enter 2013. Even if these companies cut their workforce drastically, go to bare-bones skeleton cash flow strategies, and Six Sigma streamline their operations, it’s still not going to be possible.There is going to be less money floating around in the economy, and fewer buyers on the global market due to the slowdowns in China, the European Union, and many of our other first world trading partners. Indeed I hope you will please consider all this and watch closely as this transition occurs.