Nucor-case-study

Jun 18th, 2015
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In January, 1999, in a boardroom coup, Ken Iverson, chairman of Nucor, was forced into retirement. In June 1999, his successor, John Correnti, was voted out of power. The board appointed 68-years-old David Aycock chairman, chief executive and president of Nucor. Aycock joined Nucor in 1954, became a director in 1971 and president in 1984. He retired in 1991. He stayed on Nucor’s board after 1991 as the second largest individual shareholder.

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NucorIn January, 1999, in a boardroom coup, Ken Iverson, chairman of Nucor, was forced into retirement. In June 1999, his successor, John Correnti, was voted out of power. The board appointed 68-years-old David Aycock chairman, chief executive and president of Nucor. Aycock joined Nucor in 1954, became a director in 1971 and president in 1984. He retired in 1991. He stayed on Nucor's board after 1991 as the second largest individual shareholder.The main bone of contention was the long-term strategic direction of the company. The board wanted a fundamental shift in Nucor's strategy which Iverson and Correnti resisted. Several industry and other trends led the board to reconsider strategy. First, overall steel demand in the US was growing at less than 1.5% annually. Second, market share that Nucor could take away from integrated steel companies and other mini-mills was limited. Third, many companies had replicated the mini-mills idea. Finally, low-cost steel imports had made major inroads in the US by 1999. In this context, the board asked: how could Nucor sustain its historically high-growth rates? The board contemplated several strategic and organizational changes that would have

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