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When Is It Time For A New CEO?; Leadership: Changing demands make it tougher for CEOs to stick around.(MANAGING FOR SUCCESS)
Byline: DONNA HOWELL
When is it time for the CEO to go?
A battle for the Walt Disney Co. is headed for a showdown at a shareholder meeting Wednesday.
The drama highlights issues firms face in deciding when and if to make room for a new leader. To manage the process successfully, companies must handle delicate issues wisely.
Disney has lost strategic focus, creativity and talent under longtime Chief Executive Michael Eisner, charge former board members Roy Disney and Stanley Gold. They're pushing for Eisner's ouster. And some major investors are gunning along with them.
"No one ignores Michael's successes from 1984 to 1994," Disney and Gold said in a February 9 letter to corporate directors. "The problem is . . . the Company's performance has been substandard. How long can Michael Eisner live on the Company's accomplishments from 1984 to 1994?"
Absent any legal or ethical issues such as accounting malfeasance, how does a firm tell if it really needs a new CEO?
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