A bad boss should bail-out

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Friday, November 3rd 2000 at 12:00AM

Make no mistake about it, however good a companys product or service, however hardworking its employees or large its market share, a rotten chief executive can undo any amount of good work and undermine even the most established of companies to a point of near collapse. So says a hard-hitting article in todays Investors Chronicle.

Those at the top of a company or corporation are handsomely rewarded. Shareholders and employees are rightly miffed when the big cheese makes mistakes. And its easy for a CEO to outstay his welcome following the discovery of major blunders.

Todays Investors Chronicle asks whether captains should go down with a sinking ship or should they be thrown overboard?

A few poor decisions is all it takes to force a company to its knees.

Quite.

But, sadly, when mistakes are made or omissions uncovered, chief execs can usually cling to their jobs, whereas lesser mortals would have been instantly dismissed.

And, complains Investors Chronicle, More often than not chief executives and other directors who cock things up walk quietly away with a fat payoff.

Chastened not a jot by their rejection, they usually land another CEO job within days. MBA or no MBA, its cushy at the top.

But, sweet comfort, the captain of industry who made the blunders is no longer able to demoralise his troops:

Whether or not shareholders agree that a disastrous performance should be rewarded or swept under the carpet, at least the problem has been removed, argues Investors Chronicle.