Anne Mulcahy

Anne M. Mulcahy is not someone who nurtured fond dreams of a desk in the corner office. Even today, after 3 1/2 years running Xerox Corp. (XRX ), Mulcahy, 52, seems a little surprised that fate brought her to this spot.

When Xerox' board chose Mulcahy to lead the Stamford (Conn.) copier maker back in August, 2001, the company was in terrible shape. It was fighting the Securities & Exchange Commission over accounting practices, and her predecessor had flamed out after trying to overhaul Xerox' powerful sales organization. The biggest problem of all: $14 billion in debt. Bank-ruptcy was a real possibility. But Mulcahy proved relentless in pursuing a fix. After making sharp staff and business cut-backs, bringing in a new chief financial officer, and meeting with innumerable customers, she stabilized Xerox. By the end of this year, its debt will be down to $9.8 billion.