CEO Watch List - Wachovia, Update 2

Rick Rothacker of The Charlotte Observer wrote a story today in which he posited what he thought were thirteen potential candidates to replace former Wachovia WB (NYSE) CEO, Ken Thompson, who was forced out as CEO back in early June (see earlier blog). Rothacker's piece also focused on the stealth aspect of the search for Thompson's replacement. The story opens with the following question:

Who's the boss?

That's the big question hanging over Wachovia Corp., as the
Charlotte bank's search for a new chief executive extends beyond a
month.

The uncertainty is weighing on employees as well as investors. The
stock is down nearly 35 percent since the board ousted Ken Thompson on June
1...

Check out the list of potential contenders. Does anyone know of other potential candidates?

Credit Crisis Inks Another Notch - Ken Thompson, CEO, Wachovia

Early in May (see previous blog) Wachovia's WB (NYSE) then CEO and Chairman Ken Thompson was forced to give up his chairmanship after the bank released dismal numbers.  The second shoe has now fallen.  Wachovia's board yesterday forced Thompson to resign his CEO post as well. According to David Mildenberg and Hugh Son of Bloomberg, 

... the board blamed him for losses that cost the lender more than half its market value in the past year. The stock fell as much as 4 percent.

Chairman Lanty Smith was appointed interim CEO, the Charlotte, North Carolina-based company said today in a statement that cited " a series of previously disclosed disappointments and setbacks'' for the change. Thompson quit at the board's request, the statement said.

Triangle Business Journal wrote in a story today in which the Jounal quoted Lanty Smith, the new interim CEO,

"no single precipitating event" - such as the disclosure of even wider losses - caused Thompson's ouster.

"... A series of previously disclosed disappointments and setbacks cumulatively have negatively impacted the company and its performance," Smith, 65, said in a prepared statement. "The board believes new leadership will help to revitalize and re-energize Wachovia and enable it to realize its potential. We will move Wachovia steadily ahead as a strong, independent company by continuing to focus first on the needs of our customers."

Under the gun, banks have been fervently trying to split the CEO and Chairmanship positions to try and allay growing unhappiness by shareholders and activists.  We will just have to see if this will be enough for Wachovia's naysayers.  Stay tuned.

For more:

Bloomberg (later in day)

Deal Zone

CNN Money

thestreet.com

Bloggingstocks.com

Wall Street Journal

MarketWatch

Charlotte.com

hingefire

Financial Times

SeekingAlpha

 

Recommended Reading - From CEO heroes to zeros

David Weidner's April 17 column on Market Watch entitled, From CEO heroes to Zeros examines three well known CEOs who he thinks have been over-rated and may deserve to be put out to pasture. Specifically, he examines Jeffrey Immelt, GE, Kerry Killinger, Washington Mutual and Ken Thompson, Wachovia. While I am do not view the position of these three CEOs in the same way as Mr. Weidner, the piece is a very worthwhile read.