(FORTUNE Magazine) – LOOKING AHEAD/ Cover Story

30 Tomorrow' s Chief Executives Raised on radical change, they' re apt to be quite different from their bosses. by Alex Taylor III

41 . . . And Here Are Some More Prospective CEOs

THE ECONOMY

45 Fortune Forecast: A Small Bug in the Profit Program Corporate earnings fell in the fourth quarter. They' ll likely rise and set a record by next year. by Todd May Jr.

CORPORATE PERFORMANCE

52 Genentech Has a Golden Goose Profits from t- PA will underwrite many new products. by Gene Bylinsky

67 The Fly in Campbell' s Soup Competitors are slurping lots of the company' s business. by Bill Saporito

70 Companies to Watch

MONEY & MARKETS

72 GE' s Costly Lesson on Wall Street General Electric thinks it can make Kidder Peabody a winner. Its strategy makes sense. by Stratford P. Sherman

POLITICS & POLICY

89 The New Battle Over Immigration America needs skills. So should it admit more people from abroad who have them? Or continue letting in foreigners with relatives who are U. S. citizens? by Scott McConnell

COMPETITION

105 The Headhunters' Changing Jungle Executive recruiters are seeking fewer, broader assignments at home, while they' re expanding like crazy overseas. Clients and targets will feel the effects. by Heidi S. Fiske

112 How the Top Recruiters Really Rank

THE WORLD

114 The Great Rebound: Britain Is Back The stunning turnaround was led, by Maggie and a band of aggressive managers. by Richard I. Kirkland Jr.

FORTUNE BOOK EXCERPT

124 How to Revive U. S. High Tech Can anything be done about America' s slipping technological lead? You bet, says Simon Ramo, the scientist- turned- entrepreneur who founded two FORTUNE 500 companies.

4 The Editor' s Desk

6 News/ Trends Honda' s Coupe coup, First RepublicBank becomes a case study, trinkets in the trade bill, you' re not eating enough chocolate, RJR' s flare- up with Saatchi & Saatchi, and more.

17 Letters to Fortune

27 Fortune People Ted Turner and the three bears, Bob Strauss goes back to school, Harvey Mackay swims with the sharks, and more. by Terence P. Pare

28 On the Rise

135 Keeping Up by Daniel Seligman

137 Personal Investing Even though the market is nervous this is no time to run and hide, says FORTUNE' s quarterly investment strategy report. by John J. Curran

The Investment Challenge Update.

Portfolio Talk: Robert Kern of the Morgan Grenfell SmallCap fund.

147 Other Voices Don' t shrink Social Security COLAs. by Merton C. and Joan B. Bernstein

153 Office Hours When the apple of your eye quits, maybe you shouldn' t try to change his mind. by Walter Kiechel III

Cover: Jerry O. Williams was photographed at Burnham Park, ten minutes from his Chicago office, by Mark Seliger.