Morton Salt from it's beginning led a charmed life. The company was so well managed that it was a Wall Street favorite. Then they got a young CEO in his thirties. He thought the company could be even more profitable if they got rid of everyone in the company over 55 years of age. Their replacements could be hired for much less money than they were making. This was before laws prohibiting it so he went ahead and did it.
My father who had spent a thirty year career at Morton Salt was suddenly out of a job after having the best year in his career. What the young CEO didn't realize is that in one swoop he got rid of some of the top performers while at the same time wiping out the people most responsible for maintaining the company's winning culture.
Within six months the stock collapsed, the young CEO had no answers and was fired. Morton Salt never recovered. They were merged with Thiokol and after the space shuttle disaster that merger was unwound. The once proud Morton Salt was passed around between different chemical companies until becoming part of Milliken's empire. All because of a single action by a young CEO.
My father who had spent a thirty year career at Morton Salt was suddenly out of a job after having the best year in his career. What the young CEO didn't realize is that in one swoop he got rid of some of the top performers while at the same time wiping out the people most responsible for maintaining the company's winning culture.
Within six months the stock collapsed, the young CEO had no answers and was fired. Morton Salt never recovered. They were merged with Thiokol and after the space shuttle disaster that merger was unwound. The once proud Morton Salt was passed around between different chemical companies until becoming part of Milliken's empire. All because of a single action by a young CEO.