The only owners I have removed during the USFL/WFL's three seasons have been those who totally ignored their team. Another user-owned league, Paydirt, has a system for removing owners/GMs for under-performance. Their guidelines are below. I have not previously considered doing this. But, in the quest for competitive balance, it may be something we want to consider.
Hiring and Firing of GM's
A) If they have a winless season.
B) If they have 3 consecutive seasons with less than 5 wins
C) If they have 4 consecutive seasons with less than 7 wins
D) If they have 5 consecutive seasons under .500
E) If they have 6 consecutive seasons not making the playoffs
F) If a GM takes over a playoff team and miss the playoffs for 3 consecutive seasons.
G) 3 league conduct violations.
H) No GM can be fired in their first 3 seasons with exception of rule 4.
I) If no one is on the waiting list each GM will retain their tenure with exception of rule G.
J) Once a GM is fired from their team they may not be hired by that same team for 3 seasons. They may be hired by another team at any time, determined by the waiting list.