Who's the Next CEO to Go?
On Wall Street, there’s a guilty pleasure in watching the rich and powerful stumble. After the resignation of Dell Chief Executive Kevin Rollins, many investors began quietly asking where the axe might fall next. Jon Ogg, the editor of 24/7 Wall Street.com, has accurately predicted changes at the helm of Home Depot , Gap and, as we mentioned, Dell. Today on CNBC’s “Street Signs,” we asked the question that everyone is wondering.
Ogg says Wal-Mart is on his chopping block. The retail giant has suffered a number of missteps recently, including mistakes in its fashion strategy and weakness in its grocery business.
“I think [Wal-Mart CEO] Lee Scott will lose his job by the end of the year,” said Jon Ogg, “if not sooner.”
Not everyone agrees with that.
“Lee Scott has run Wal-Mart for some time. The company has had some good days," argued Michael Useem of the Wharton School at the University of Pennsylvania. "Before the equity analysts and the investment managers begin to build a drum beat for his ouster, I think they have to … understand his strategy. All companies have ups and downs.”
Who else is on life support?
According to Ogg, Citigroup’s Chuck Prince. “ I think Chuck Prince is out before Wal-Mart is. Wall Street already has the casket going for him, and he’s not showing up for his own funeral yet.”