Falling on Your Sword - A New Option for CEOs?

Earlier today David Neeleman, the entrepreneurial founder and CEO of JetBlue Airlines (JBLU - NASDAQ), announced he was stepping aside to become non-executive chairman of the board. Neeleman, unlike most corporate CEOs, accepted responsibility for JetBlue's Valentine's day disaster back in February which cost the airline over $40 million but much more in bad publicity. On Valentine's day a major storm, which the company initially attempted to weather by avoiding flight cancellations, ultimately turned into a nightmare for customers and the company resulting in major delays, flight cancellations and more. Soon after the problem, Neeleman went into crisis mode. He was everywhere - TV, print and TV ads, announcements, advertisements, radio - accepting responsibility for the snafu and promising it would not happen again. He followed his announcements of contrition with a passenger bill of rights.

Ultimately, the buck stopped at Neeleman's desk, and unlike Alberto Gonzales, U.S. Attorney General and corporate and business leaders, he decided to resign. Neeleman's successor Dave Barger, the current president, was chosen immediately. In a prepared statement Neeleman stated, "As chairman of the board of directors, I will focus on developing JetBlue's long-term vision and strategy, and how we can continue to be a preferred product in a commodity business."

Neeleman so far is a rarity in America's corporate world, a CEO willing to accept responsibility for when things go wrong and at the same time pay the consequences. The real question is whether he has started a new trend or whether his decision to resign was just an exception to the rule. The implications from an investment perspective could be important if a new trend is evolving.

Stay tuned.

For more on the change:

AP Article
Washington Post Article
TheStreet.com
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