Top 150 Execs Could Get the Axe

The atmosphere at Textron, owner of Bell Helicopters, Cessna Airplanes and Lycoming engines, is one of fear and loathing these days, especially at the top. Chairman Lewis Campbell, you see, has a new, color-coded way of rating the performance of his top executives. Their new job reviews classify the company's top 150 executives by colors -- red, yellow or green (sounds a lot like CAPPS II, doesn't it?).

Green is the best of the ratings. Red is the worst. Red means "they're out of there," Campbell said at a Morgan Stanley industrials conference that was Webcast from Scottsdale (AZ). Executives with yellow ratings also could lose their jobs without improvement.

Campbell said Textron is keeping a much closer eye on its top execs, managing them "much more aggressively." The Providence (RI)-based company is making several moves, hoping to increase productivity and performance. Still, Textron's financial outlook remains rather bleak, as the company works through reduced demand for its signature Cessna business jets. Retooling the V-22 Osprey isn't helping either. Employees -- even executives -- who just aren't up to snuff had better start looking over their Christian Dior-clad shoulders.

"It turns out as you step up the bar some people's strengths then are overcome by their weaknesses because they have to perform at a higher level," Campbell said.

The company wrapped up its executive reviews some 10 days ago. Campbell says it determined that "a little less than 20 percent are yellow or red at this point."

Well, don't look at us. We don't have any openings right now (right boss?).

FMI: www.textron.com