Failing Forward

“America is supposed to be a great country for second chances. Historians relish the roller-coaster careers of Abraham Lincoln and Richard Nixon -- both written off as hopeless losers, only to rise to the presidency a few years later.

“Recent corporate comebacks are just as startling. Wasn't Robert Nardelli portrayed as a pariah for life after losing the top job at Home Depot Inc. in January? Guess again. In August, he resurfaced with a dazzling new job: running Chrysler LLC.

“All of which invites outsiders to keep a keen eye on the eventual destiny of Stan O'Neal, who stepped aside yesterday as chairman and chief executive of Merrill Lynch & Co. During the final weeks of his tenure, Merrill posted a $2.24 billion third-quarter loss, fueled by an $8.4 billion charge for problem loans. Mr. O'Neal fared somewhat better; his retirement package totals $161.5 million.

“Merrill's dismal performance means that even Mr. O'Neal's defenders don't expect him to attract new CEO offers right away. The banking and brokerage company's stock has skidded 30% this year, while its credit ratings have been downgraded. It may take years to mend the firm.

“What's more, Mr. O'Neal became known at Merrill for his tough, brittle style and the rapid turnover among his lieutenants. Firms that want a charming boss are likely to look elsewhere.

“Yet with the passage of time, Wall Street tends to forgive high achievers with one dreadful year blighting their resumes…

“Ousted CEOs who have bounced back, like Chrysler's Mr. Nardelli, benefited greatly from continued support by their friends and mentors. Networking can't rescue everyone; if fraud or personal misconduct led to a CEO's firing, that's almost always the end of the story. But in many cases, recruiters say, it's white male executives who mingle on the golf course, work their college networks and benefit from apprenticeships at giant companies such as General Electric Co. who are most likely to have strong booster networks…

“Mr. O'Neal's Merrill Lynch payout is big enough that he needn't ever work again. Yet at age 56, he is young enough to tackle another big project. And it's a good bet that he will look for a way to vindicate himself. Who knows -- he may even write a book.”

(Business: Is There a Second Act for O'Neal After Merrill?” George Anders. Wall Street Journal: October 31, 2007. pg. A.2)

STAY CLEAN; never give up; learn from all that you do; forge strong bonds; build upon your successes, and never look back.