Management: Fasten Executive Belts

Chairman C. R. Smith had picked a man for the presidency of American Airlines, which became vacant fortnight ago when Marion Sadler quit in frustration and took off on a hunting trip in New England. And who was Sadler’s successor? Why, it was Marion Sadler himself. No explanations were offered, no pronouncements delivered. Smith simply flashed one of his familiar, terse memos, known to insiders as “Smith-grams,” to puzzled employees: “Good news! Mr. Marion Sadler is back at his desk this morning with the usual duties.”

The return of the intense, volatile Sadler, 53, came after long talks with Smith, American’s real boss, whose pride was hurt when Sadler walked out. Sadler became president of American last January as Smith’s heir apparent, quit after repeated run-ins with rival executives. Before he would return, he apparently obtained from Smith reassurances of his authority as president, including clear command of flight operations, personnel, marketing and advertising; his $70,000 salary may also have been sweetened.

The third man in this triangle was off vacationing in Europe. He is William J. Hogan, executive vice president and, as financial chief, Sadler’s main antagonist. Up till now, Hogan has been, in effect, co-president with Sadler. In the weeks ahead all seat belts at American will be fastened tight for more heavy executive weather.