In a rather surprising move for Dell, the computer maker has hired former American Airlines CEO Don Carty as its new CFO. However, it is no surprise that Carty has landed outside of the airline industry considering he was practically tarred and feathered on his way out of AMR in 2003.
While Carty was a highly regarded executive for most of his tenure at American Airlines, the turbulence the airline experienced in the aftermath of 9/11 turned Carty into a villain. At the time, Carty was walking a tight rope trying to balance the board's demands for give backs from labor, while keeping labor happy. In the end, Carty lost face with both labor and the board leading to his ouster.
At the time, industry consultant Michael Boyd summarized industry attitudes toward Carty in a colorful manner when talking with The Deal: "At this point Don Carty might as well put on a cheap plaid jacket and start selling used cars. He's got the right credibility for the job." Ouch!
Despite his vilification, Carty didn't leave the industry quietly. He was involved in the 2004 bankruptcy proceedings of Hawaiian Airlines. Of course, his shot credibility led to questions about his real motives behind his attempt at acquiring the bankrupt carrier leading some insiders to suggest he was simply in cahoots with rival bidder John Adams in an attempt to make Adams' bid seem more palatable to creditors, according to The Deal. However, Adams' bid failed, and while Carty's bid also failed, he did receive a small stake in the airline's eventual reorganization.
Despite claims that Carty knows nothing about computers, in his defense, he has been on Dell's board of directors since 1992, so clearly he must know a thing or two about the industry. Hopefully, he won't be tarred and feathered on his way out of Round Rock, Texas. —Matthew Wurtzel
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