PAUL WYCHE
THE SAGINAW NEWS

Parker, though, had much working against him. A sluggish economy, merger-related problems with Union Carbide Corp. and federal environmental officials who berated his agreement with the state over dioxin cleanup in Midland were among Parker's woes.

"When you put all of these factors together, he was in the right job at the wrong time," said Colin Buell, who besides working as a hazardous materials regulator for Dow, owns "significant shares" in the company and is secretary on the Midland Public School District Board of Education.

"This is like people blaming (President) Bush for the economy because when Clinton was in office things were good," he said. "I don't ever recall this happening in Dow's history, so that part is a little intriguing."

Dow's policy typically is for the president and chief executive officer to step aside after reaching age 60.

However, Dow's Board of Directors is bringing back William S. Stavropoulos, 63, to succeed Parker who is 56. Stavropoulos will retain his post as board chairman while Parker will stay a Dow employee and board member.

A company spokeswoman said Dow "reached this decision solely in light of the disappointing financial performance of the company over the last eight quarters, with this year's results expected to show no improvement from last year."

Steven Anderson, a top money manager at Hilliard Lyons in Saginaw Township, said he suspects Stavropoulos is a temporary fix "until they can find a long-term replacement."

"It makes sense because he was behind Dow's acquisition of Union Carbide and would have the most knowledge about the situation," Anderson said. "Even though (Parker's demotion) was a quick move and nobody saw it coming, it does show that the Board of Directors is serious about maximizing shareholder value."

The change at the top was a stunning move by a company that does not appear to be struggling, said Standard & Poor's analyst Richard O'Reilly, whose specialty is the chemical industry.

"It was a surprise," O'Reilly said. "I suspect Parker promised a better '02, and it ain't happening."

Midland-based Dow merged with Danbury, Conn.-based Union Carbide in February 2001, making it the world's second-largest chemical company behind DuPont Co.

In October, Dow posted third-quarter profits that more than doubled its year-ago results, but the company said it was hindered by higher fuel costs and announced spending cuts to combat the uncertain economy. The company also said results fell below earlier expectations.

Dow had said uncertainty was expected to continue for the remainder of the year, though the it expected fourth-quarter earnings to top those from last year.

The company also had announced several measures to improve earnings and cash flow, such as decreasing 2003 capital spending by 20 percent and making other reductions.

Dow's stock closed down a dime to $29.05 on the New York Stock Exchange on Friday. t