The Five Dumbest Things on Wall Street This Week

Out With the Old ... Wait a Second New Merck CEO starts, and so does the old one

2. Last Train to Clarksville

Merck (MRK Quote) is ready to put the Ray Gilmartin era behind it.

On Thursday, the drug giant tapped manufacturing chief Richard Clark to replace Gilmartin, its embattled CEO.

Gilmartin, who had planned to stay through 2005, chose to step down immediately once a successor emerged, Merck says. The sudden change surprised Wall Street, but "in no way" was Gilmartin forced out, board member Larry Bossidy says.

Still, you could hardly blame Merck for wanting to take action. Gilmartin, who took the CEO post in 1994, came under fire last fall for his handling of the Vioxx crisis. Investors also took aim at Merck's weak stock and its problems in replacing big-selling drugs.

Vioxx lawsuits are now being heard, saddling Merck with billions of dollars in possible liabilities. Other problems surfaced on Gilmartin's watch as well: Merck said last spring it could face a massive back-tax bill, and last summer it outlined shortcomings in cholesterol-buster Zocor.

So where does this leave Gilmartin? Why, he'll be offering the board his sage advice for another 10 months. Until his retirement next March at age 65, Merck says Gilmartin will be "providing expertise in the areas of global public policy, government and regulatory affairs, and charitable contributions."

Considering Merck's recent track record, we're sure the value of Gilmartin's expertise won't be lost on the board.