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Second-act CEO success nearly as rare as Steve Jobs

Friday, January 09, 2009 - 08:47 AM EST

"Does Michael Dell, founder of the world’s second-biggest computer-maker, regret going back to run the firm that bears his name? He says not. But nearly two years after returning as chief executive to the troubled firm he had left on a high two years before, he shows no sign of repeating his earlier success. On December 31st Dell announced another restructuring and the departure of some senior executives Mr Dell had recruited to lead his turnaround. The firm’s share price has fallen by more than half since Mr Dell’s return," The Economist reports.

"Meanwhile, at Starbucks, a year after Howard Schultz (pictured) returned as chief executive, the coffee chain’s share-price has fallen by half and it is unclear whether his new strategy is working—especially as the recession makes sales data hard to analyze," The Economist reports.

"So far, neither chief executive seems likely to repeat the spectacular second act of Steve Jobs at Apple. Its shareholders rejoiced this week when, responding to rumours that he was on his deathbed, Mr Jobs said his health is improving and he intends to carry on as chief executive (see article). Since Mr Jobs returned to Apple following its acquisition of another of his start-ups, NeXT, in 1996, its share price has grown roughly 20-fold," The Economist reports.

"There is an ominously long list of disastrous second-act chief executives. Kenneth Lay’s second act ended with the bankruptcy of Enron, his trial for fraud and early death. Ted Waitt was unable to revive Gateway, the computer-maker he founded, when he returned for a second stint as boss in 2001. Paul Allaire, who successfully ran Xerox during the 1990s, lasted only 15 months the second time around. And so on," The Economist reports.

Full article here.