The global credit crisis has forced many financial institutions to turn to a new breed of CEO, the "hired gun." The mess many of these companies have gotten themselves into, however,
has become just too big for any CEO to dig out of, resulting in
stints that are growing ever shorter as companies either fail or sell.
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Take, for example, Wachovia Corp. CEO Robert Steel. He's been at the helm for little more than four-and-a-half months and was told Wednesday that he would have no role in the future company that forms from the merger with Wells Fargo & Co.
But four-and-a-half months seems like a lifetime compared to Washington Mutual Inc. CEO Alan Fishman who was on the job for 16 days before J.P. Morgan Chase & Co. grabbed the assets of the failing thrift and gave him his walking papers. Then there's American International Group Inc. CEO Robert Williamstad. He signed on as AIG's CEO but held the position for four months after being relieved by Edward Liddy on Sept. 22, when the firm accepted an $85 billion loan package from the Federal Reserve.
So, Steel will be exiting Wells Fargo when the deal finalizes. He told a group of Wachovia rank-and-file: "There are no guarantees," a motto many hired guns these days should likely heed before they step into office. - Gerald Magpily
See Charlotte Business Times article via San Francisco Business Times
See Dealscape: Rewarding Wall Street's failures
