Why CEO’s Are On the Hot Seat

From CNBC:An interesting take on what happened to Stanley O’Neal at Merrill.

stanleyoneal.gif

clipped from www.cnbc.com

Maybe a hidden agenda drove Stan O’Neal’s exit.

Merrill Lynch’s board fired him, in my view, mainly because he had the temerity to approach Wachovia as a possible merger partner without consulting the board. How dare he!

Yet why can’t a chief executive put out a feeler these days, without having to formally notify every director and then inevitably have to deal with the fallout when some of those board members leak the news to pals?

And O’Neal is out because the old-guard brokers at Merrill resented his emphasis on the newer businesses; when they got their chance, they turned on him.

And so it is, maybe, for Jimmy Cayne at Bear Stearns.

 

I found a website that was very complimentary of Mr. O’Neal.  I better cut and paste that one before it gets pulled down – from Kathy Crockett and the My Hero Project.  There’s no telling how long it will last.

One comment

  1. The old guard being threatened by the new…has the pendulum swung so far in the extreme to counter the ‘new’ that we see a house cleaning of ‘new persons bearing new ideals’ in politics (ie. Bush Co., yeah we’ve been here before, this is America, but this regime is extreme), in corporate America (ie. the dismantling of any of the promises of new tech, new media and the like; the ousting of ‘game-changing’ CEO’s; continuing consolidation) and of course sports (oh so many examples).

    The patterns across institutions and industries are starting to become more visible IMO.

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