Businessweek Archives  Lessons From The Boardroom Dramas
American Express, IBM, and Westinghouse Electric. In just one
week, boardroom turmoil has battered the chief executives of
three corporate household names. Two, IBM's John F. Akers and
Westinghouse's Paul E. Lego, were ousted, while James D.
Robinson III of American Express still seems to share power, in
an outcome that's muddied and confusing.  The shock of such
drama is surpassed only by the wonder that it took so long to
unfold. Where were the directors during the years when all three
companies were losing money and market share? IBM stock alone
tumbled by $23 billion in total market value between the summer
and fall, a sum equivalent to the Clinton Administration's
entire economic stimulus plan, but still the board stuck with
Akers.  The answer lies in the composition of corporate boards.
Too often, former chairmen remain as board members and backseat
drivers, thus preventing strong remedial measures that might
require undoing their old empires.