William J. Agee, a storied U.S. executive who helped spawn the takeover era and the high-powered office romance, quit under pressure Friday as head of struggling construction giant Morrison Knud-sen Corp.
The Boise, Idaho-based company's directors, who have grown increasingly impatient with what they considered Agee's aloof and arrogant management style, moved quickly to replace him.Morrison Knudsen named former Reagan administration Cabinet officer William P. Clark acting chairman and Stephen G. Hanks acting chief executive officer.
The announcements Friday came a day after the company's board met in San Francisco to consider Agee's fate.
Suave and sophisticated, Agee was hailed as a savior when he joined Morrison Knudsen six years ago. But his leadership came under fire in recent months from some directors as the company's financial troubles mounted.
Last week, Agee disclosed that he would gradually relinquish his posts at the company and retire.
But pressure apparently mounted for him to leave sooner.
Agee, 57, won notoriety on Wall Street in the 1980s as chairman and CEO of Bendix Corp. He made a bid for defense contractor Martin Marietta Corp., triggering a takeover brawl that foreshadowed similar battles later in the decade. He lost the fight for Martin Marietta and his job at Bendix.
He drew even more attention for his relationship with his executive assistant, Mary Cunningham, who rose rapidly to vice president at Bendix and later became his wife. Cunningham's ascendance over others raised questions about whether he promoted her out of love.
In Friday's announcement, Morrison Knudsen said Agee also stepped down as president and a director and resigned from leadership posts at its MK Rail Corp. and MK Gold Co. units.
Clark, 63, who was elected to the board last year, served as interior secretary and national security adviser under President Ronald Reagan and is a former justice of the California Supreme Court. He currently is chief executive officer of Clark Companies.
Hanks has served as executive vice president of administration and finance for Morrison Knudsen and is a 16-year veteran of the company.
Last week, Morrison Knudsen announced losses and the elimination of its dividend. It also said it probably would sell non-core businesses. Its debt rating was lowered to near-junk status and its stock price plunged.
Morrison is perhaps best known for giant construction projects including the Hoover Dam.