OAMSir,
This weekend you pronounced the end of the Imperial CEO, citing various cases, including that of Bernie Ebbers, who has just been convicted of fraud ("Exit the emperor-bosses, leaving a legacy of prudence" FT Weekend March 19-20).
Apparently Ebbers knew nothing about technology, accounting or finance. I wonder if he told his Compensation Committee all that when they were fixing his multi-million dollar salaries and bonuses year after year?
Also cited were the departures of Eisner from Disney and of Greenberg from AIG, and the split of Viacom was read as Sumner Redstone being humbled.
Just one moment!
Yes Eisner has announced his departure as CEO but that will be months away and, when it happens, he will remain on the Board for another six months. At the same time, the current Chairman of Disney is a temporary and they are looking for a replacement. A week is a long time in Politics, and in Business. Eisner is not buried yet!
As to Maurice Greenberg, yes he was asked to go by his Board, under considerable pressure from the New York District Attorney, but he remains and apparently will continue to remain Chairman. With all due respect to Martin Sullivan, the new CEO, he has been a company man for many years and who will be surprised if he does not make a move that is not approved by the great one down the corridor?
Finally, another reading of the Viacom split is that Sumner Redstone is not considering a split in Viacom because he is newly humbled, he is considering a split in Viacom because he does not see anyone capable of stepping into his significant and
irreplaceable shoes. That is Imperial, not humbled.
What better end to his tenure than to split his creation into two (or three) set up various CEO's and remain Chairman of all. Better than any plaque or watch.
Let us see what happens before we make definitive pronouncements.
Related links:
Exit the emperor-bosses, leaving a legacy of prudence (registration required)
AIG Replaces CEO Greenberg With 3 Execs
AIG chief steps down amid probe
AIG chief hits at regulatory environment
As Directors Feel Their Oats, Chiefs Are Put Out to Pasture
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