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CNN Sunday Morning

Did Adultery Provide Challenge for Welch?

Aired March 24, 2002 - 07:22   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: Retired General Electric boss, Jack Welch, is widely regarded as the best CEO of his generation, but his recent affair with a reporter had many people wondering what's up with that executive decision. Such foolish behavior is almost predictable, according to some experts. CNN's Casey Wian has that.

(BEGIN VIDEOTAPE)

CASEY WIAN, CNN CORRESPONDENT (voice-over): Jack Welch reached the pinnacle of American business and that may be exactly what led the retired chairman of General Electric to risk his marriage and reputation by having an affair with a prominent journalist. According to psychologist, Steven Berglas, who's studied and written about executive behavior for 25 years, there were even warning signs during Welch's last days at GE.

STEVEN BERGLAS, "RECLAIMED THE FIRE": When I saw him go after Honeywell and try to acquire it and defer his retirement, predicating on the belief that he was best suited to, you know, complete that deal, it struck me that this is a man who viewed retirement as a form of death. And he would need something much more stimulating than hocking his book on college campuses to keep him alive.

One of the things that people who are successful need is constant challenge, constant excitement, constant adrenaline and often times, adultery provides that.

WIAN: Berglas warned in a 1996 "Boston Globe" commentary that newly reelected President Clinton faced the potential for self- destructiveness.

BERGLAS: When he won his second term in office, I argued that he would be deprived of the thing that made him feel most alive and that he would need to get into a jam just so he'd have something to fight his way out of as in fighting for his seat. Therefore, I knew he would something self-destructive and having sex in your office when you're behavior is monitored by a secretary and the Secret Service is not a wise move.

WIAN: Berglas theorizes the same forces were behind Pete Rose's gambling problems when he made the transition from baseball player to manager and behind Michael Jordan's retirements, comebacks and marital problems. He also cites, white collared criminals such as Ivan Boesky, Dennis Levine and Michael Milkin as people likely motivated not by breed but the thrill of getting away with something.

But other experts and corporate behavior say Welch's behavior is not typical of executives facing a loss of power.

BERGLAS: It's actually fairly rare, surprisingly. In reflecting over the last couple of year, I know eight CEOs who retired. All of them have kept their marriages in tact. All of them are happily married. And so, it's fairly unusual.

WIAN: Conger (ph) has worked with Suzy Wetlaufer, the editor linked with Welch and describes her as a hard charging personality likely to attract someone like Welch. While experts may debate what motivated Welch, lawyers are now working on the consequences of his actions. Likely, one of the largest divorce settlements in history.

Casey Wian, CNN financial news, Los Angeles.

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