Turmoil in the Boardroom
After promising for years to turn Hoechst into a life-sciences company, CEO Jurgen Dormann is spinning off the chemical business, and there are rumors of a merger with Rhone-Poulenc.
A management shakeup and a flagging stock price brought down former Chairman Gian Maria Rossignolo in October. His replacement, Franco Bernabe, faces stiff competition from telecom upstarts.
Amid plant closings and a failed joint venture with the U.S.'s Lucent Technologies in cellular phones, and opposition to CEO Cor Boonstra is on the rise.
Under pressure from investors, CEO Heinrich von Pierer announced in November that he will divest $10.2 billion worth of businesses, including the chip operation.
Its alliance with American Airlines recently unraveled, and its share price is half what it was a year ago. Some institutional investors question CEO Robert Ayling's leadership and strategy.
Serge Tchuruk issued a profit warning in September. Now, Alcatel is being sued by angry shareholders of DSC, the Texas company Tchuruk bought two weeks before he announced the problem.
After a $43 million earnings hit this spring, the Dutch software maker's stock plummeted, shareholders began probing murky accounting, and CEO Jan Baan stepped down in July.
DATA: BUSINESS WEEK
- COVER STORY: EUROPE: BOSSES UNDER FIRE
- EUROPEAN COVER IMAGE: Bosses Under Fire
- CHART: Where Investors Like What They See
- TABLE: Turmoil in the Boardroom
- COMMENTARY: HOT AIR IN THE EXECUTIVE SUITE (int'l edition)
- A SHAKEN CEO AT PHILIPS (int'l edition)
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