(FORTUNE Magazine) – Not only does Parsons sit atop the world's largest media company--an empire that includes movies, music, television, cable and online services, and FORTUNE publisher Time Inc.--it looks as if he may have the power to turn around the wounded giant. In his 14 months as CEO, he's managed to stabilize the $42 billion company, in part by telling division heads to focus on running their businesses instead of fretting about merger synergies. And Parsons, 55, has quietly exercised his authority in the boardroom, securing the chairmanship following last May's resignation of Steve Case. Despite his strong start, this consummate diplomat--unlike his higher-ranked fellow moguls--is still grappling with some tough problems, including an ongoing SEC investigation, sluggish performance at AOL, and a delayed IPO of Time Warner Cable. --S.N.M.