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Management article
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Reference no. 92608
Published by: Harvard Business Publishing
Published in: "Harvard Business Review", 1992

Abstract

Tidewater Corp CEO Bob Salinger faces a dilemma: his most valuable employee, boat designer Ken Vaughn, is also his most destructive. Because of his great talent, Vaughn is critical to the company's future growth and profitability. But his antagonism toward Tidewater's recent reorganization is causing disruptions all over the company, and Vaughn has become increasingly violent. If Salinger fires Vaughn, he risks losing him to a competitor, who would than be in position to grab Tidewater's market share. But if he keeps Vaughn, the company's necessary reorganization may be seriously damaged. Salinger is waffling in the decision and has made a tough situation even worse.

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Abstract

Tidewater Corp CEO Bob Salinger faces a dilemma: his most valuable employee, boat designer Ken Vaughn, is also his most destructive. Because of his great talent, Vaughn is critical to the company's future growth and profitability. But his antagonism toward Tidewater's recent reorganization is causing disruptions all over the company, and Vaughn has become increasingly violent. If Salinger fires Vaughn, he risks losing him to a competitor, who would than be in position to grab Tidewater's market share. But if he keeps Vaughn, the company's necessary reorganization may be seriously damaged. Salinger is waffling in the decision and has made a tough situation even worse.

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