CEOs Change, but Problems Can Persist

When a company is in trouble, does firing the chief executive help? While General Motors (GM) investors—to say nothing of the Obama Administration—might like to think so after CEO Rick Wagoner was forced out on Mar. 30, some say changing leaders in the middle of a crisis risks aggravating a bad situation. Other experts argue that complacent corporate boards and fettered shareholders let bad CEOs linger too long, damaging their companies. Whether ousting Wagoner at this point will help GM—or make things worse—isn't clear.

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