It's the biggest drawback in a company's succession planning: what to do with the senior executives who miss out on the top job.
At BHP Billiton, the market has been waiting for that shoe to drop for the past week after Marius Kloppers was chosen to replace the departing CEO, Chip Goodyear.
Kloppers was chosen over three other internal candidates, one of whom was Chris Lynch, the company's former Chief Financial Officer and head of the company's carbon steel minerals business.
Another candidate was said to be Mike Yeager, the head of the company's Petroleum business.
With Kloppers aged 44 and Lynch 53, analysts had seen the writing on the wall: it was only a matter of time before Mr Lynch quit. And that's what he did yesterday.
But there are two CEO roles ideally suited for Mr Lynch.
Zinifex, the big zinc miner (which is in the process of spinning off its smelting and refining business) will need a new CEO when Greig Gailey steps down later this year.
And BlueScope Steel (which used to be part of BHP's steel division, centred on Port Kembla in NSW and the huge Westernport rolled products business), will need a new CEO to replace Kirby Adams who leaves in October.
Some companies dread these situations because they know that when there's a list of top notch internal candidates, the losers will want a top job elsewhere.
General Electric in the US found the same situation when it chose Jeff Immelt as CEO to replace the legendary Jack Welch. Within six months GE had lost several high flyers to CEO roles at other big American companies.
BHP Billiton shares closed up 13c at $33.06 yesterday, not because of Lynch's loss but because of stronger oil prices; although the higher Australian dollar should have clipped some of the optimism.
Mr Kloppers' appointment (he was group president of non-ferrous materials division, i.e. copper) as CEO has raised speculation the company will step-up its deal-making activity.
But there are few deals left that a company as big as BHP Billiton could make that would be company changing: everything else would be one of those 'bolt on acquisitions".
The one favoured by all the urgers and speculators is a takeover for Rio Tinto but the Chinese and other Asian buyers of Rio's iron ore and coal would never OK it.
The one interesting area that Mr Lynch had under his control at BHP Billiton was China, in addition to him overseeing iron ore, manganese and coking coal, which accounted for 24 percent of the company's earnings in the half year ended December 31.
That overall responsibility for BHP's Chinese business gives him a rare insight that other major companies would prize.
South African-born Kloppers, 44, headed a group that includes the aluminum, base metals and stainless steel materials unit, and had held positions as chief marketing and chief commercial officer in the company. Copper and the Escondida mine in Chile were dominating assets in his area.
That mastery of China might open up other roles for Mr Lynch.
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Meanwhile there's been another major management change at a world class mining company.
Newmont Mining Corporation, one of the world's major gold producers, has announced the retirement of Wayne Murdy as CEO from July 1, 2007.
He will be replaced by Richard T. O'Brien as CEO and President as of the same date.
Mr. Murdy will continue to serve as Chairman of the Board until the end of 2007, representing Newmont with international and industry organizations and in specific international initiatives.
Mr. Murdy, who will be 63 in July, cited a recent health issue and family considerations as influencing his decision to retire at this time.
He successfully guided Newmont through the acquisitions of Normandy and Franco-Nevada, and the integration of those companies to create one of the world's biggest gold miners.
Mr. O'Brien joined Newmont in 2005 as Chief Financial Officer and was most recently President and Chief Financial Officer.
