CEOs: See How They Run

A distraction. I'm sure that as he spoke, just off-camera, another half-dozen e-commerce and Internet CEOs were sneaking out the back door, heading for higher ground and leaving behind a trail of unexercised options, confused employees and investors, and -- above all -- a growing sense that confidence and tech stocks are not words that belong in the same sentence.

That fight-or-flight instinct we hear so much about? These CEOs are choosing to turn and run, but don't worry. It says more about them than it does about the future of the Internet economy.

Good Riddance

What message is sent when a CEO flees the Net economy? (Or for that matter, the vice president of sales or overseas operations?)

Did they get in over their heads? Or does it say something even larger? Did they come and see and decide there was nothing here to conquer?

No. I choose another option: I say the CEOs who are fleeing are wimps. And we neither want nor need them around.

Taking Exception

There may be some exceptions. If a CEO is in failing health, then the dot-com world -- even this slower, more measured dot-com world -- is no place for him or her. And if a gold-medal opportunity comes along from the traditional world, the dream job that a CEO has always wanted, then he or she gets a pass as well.

Those forced out, either implicitly or openly, are also exempt from charges of cowardice. Unfortunately, we don't know the full story behind the biggest departure of recent weeks -- the decision by Yahoo's Tim Koogle to step down. More time with family, as the saying goes. Sounds like a mutually agreed upon reason for an involuntary departure to me.

Yahoo! Indeed

But let's take Koogle at his word; it'll be more fun that way. Why leave now? Yes, it's become a difficult time to be at the head of Yahoo! After all, dropping out of the the profit club is no fun. As Koogle looked out across the rest of 2001, he probably had a few holidays circled, but not much else. If there are bright spots out there, they're hard to see through the clouds.

However, it is times like these when companies, no matter what their field of play, need leadership more than ever. Experienced leadership. Steady leadership. Leadership that doesn't blink in a staring contest.

So the argument could be made that Koogle chose a good time to get out. Maybe he gave Yahoo! the chance to find someone who can steady the ship, a big name who can light a little fire under the stock price if nothing else.

But already we've heard word that the leading heavyweights aren't interested. It's an "if elected, they will not serve" kind of thing.

Hunting Heads

Part of the problem is the task Koogle leaves behind. It would be one thing for him to stand up and say he's reduced Yahoo's reliance on advertising to reasonable levels and has earnings back on track. But it's another thing to leave and say, "Come on in and do that work. And do it amid an oncoming recession."

This is why the stock took a beating after the trading halt was lifted the day Koogle's announcement came. Better post that job on Monster.com soon.

This is not to bash Koogle or any of the other hundreds of road-hitting dot-com CEOs personally. They served their purpose. They were the expansionist CEOs, the ones who gobbled up smaller companies in acquisitions and laid competitors aside in the battle over turf.

But a different job description is required now. And the first requirement should be guts. Lots of guts.

What do you think? Let's talk about it.