FIRST

Okay, so "The Garlington Report" was the first to call the Delta CEO announcement. That's a fact that a few have noticed.

For the record, however, we were factually incorrect on at least one specific: COO Whitehurst will not resign effective immediately. Timing is beside the point as conveyed to Fortune (go to http://money.cnn.com/2007/08/21/magazines/fortune/delta_boyle.fortune/index.htm?postversion=2007082117.) Talent at that level rarely hangs around for scraps left after the power gets divvied up.

We could be wrong, but in this case, it's nearly impossible to see how a guy who made over a million dollars with Boston Consulting Group prior to joining Delta would hang around in an unclear position. Particularly after what he was able to accomplish. Listen quietly and you'll probably hear the buzz of recruiters ringing through on his BlackBerry.

High achievers want to achieve; it's not always about money. In fact, when you have that much money, it's about higher levels of success, which can include money but that's rarely the only measure.

Oh, and here's a weird nagging detail: They've given the CFO, Ed Bastian, the additional title of President while the "new guy" becomes CEO. Does that have precedence in major companies?

Someone needs to trace the relationship between Bastian and the head of the pilots union more closely. That may be more revealing than what the creditors' influence indicates.

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Delta to name new CEO later today

ATLANTA (August 21, 2007) -- Delta Airlines will name current board member Richard Anderson CEO in an official company announcement later today, according to undisclosed source close to the company. Ed Bastian, current CFO, will be named president, and current chief operating officer (COO), Jim Whitehurst, will resign effective immediately. Daniel Carp will remain non-executive chairman of the board.

Naming a recently appointed board member raises questions about whether Anderson's candidacy was impartial when he joined the company's board. As The Wall Street Journal first reported earlier this month, Anderson was not present for interviews of internal candidates. This would suggest, at least perceptually, that Anderson was in it for the CEO job all along vs. the organization's long-term strategic interests. The same firm that recruited Anderson, Spencer Stuart, also recruited Carp, whom according to sources, led the search process.

This appointment also means Delta will lose arguably their strongest leadership talent responsible for turning the company around coming out of Chapter 11 bankruptcy. Whitehurst, a former BCG partner, is widely credited with some of the company's improvements in customer service and execution of the successful international expansion strategy. He is perhaps best known for orchestrating the Velvet Rope Tour, an effort to restore confidence among non-union flight attendants.

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Nardelli Hit Parade

It's hard to recall a more galvanizing executive appointment than Bob Nardelli being named CEO of Cerebrus' Chrysler. No lack of opinions or views. Here's mine: http://www.usatoday.com/money/autos/2007-08-06-chrysler-bob-nardelli_N.htm

Not many get that level of second chance, particularly after what he left in his wake at Home Depot. The original tag to this story was, "Failing Upward." The best unpublished comments range from "this type of buffoonery is bad for capitalism" to "what's the (betting) 'over under' on his tenure?"

What to watch: Will Nardelli learn from previous mistakes? Or more importantly, hone his leadership skills? One thing is for sure. He's not going to be successful driving his original love, a Dodge Dart. Eeesh!

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