After a series of company setbacks, Wachovia Corp (NYSE:WB) CEO Ken Thompson was asked for his resignation. Thompson is one of several executive casualties resulting from multi-billion dollar losses for finance industry leaders. While this news may have Wall Street buzzing about the future of Wachovia and what that could mean for the industry, the news also raises questions about the pressure on industry CEOs, particularly in times of struggle.
According to a report from CNN, Wachovia had experienced over $700 million in losses and began undergoing some structural changes and in an effort to "strengthen leadership." It was in this restructuring that Thompson was stripped of his chairman title, what some may call writing on the wall and the beginning of the end for Thompson.
It will be interesting to see how these internal changes will affect the company culture, if Wachovia shareholders are truly seeking an innovative way to reverse the losses or a scapegoat on whom to place blame. Whichever is true, the fact is that changes in leadership can often help to shake a company out of a rut and help encourage creativity.
Many businesses that have been around for decades have gotten stuck in old patterns and, in order to survive in this changing business climate, need desperately to evaluate the way things are done and infuse some innovation into the company culture. It is during times of industry turmoil that the old guard gets uncomfortable and starts looking for a way to reverse the downward trend. Unfortunately for some company executives, that means out with those who appear to be unable to whether the current storm.
According to a report from CNN, Wachovia had experienced over $700 million in losses and began undergoing some structural changes and in an effort to "strengthen leadership." It was in this restructuring that Thompson was stripped of his chairman title, what some may call writing on the wall and the beginning of the end for Thompson.
It will be interesting to see how these internal changes will affect the company culture, if Wachovia shareholders are truly seeking an innovative way to reverse the losses or a scapegoat on whom to place blame. Whichever is true, the fact is that changes in leadership can often help to shake a company out of a rut and help encourage creativity.
Many businesses that have been around for decades have gotten stuck in old patterns and, in order to survive in this changing business climate, need desperately to evaluate the way things are done and infuse some innovation into the company culture. It is during times of industry turmoil that the old guard gets uncomfortable and starts looking for a way to reverse the downward trend. Unfortunately for some company executives, that means out with those who appear to be unable to whether the current storm.
