General Motors' CEO Gets the Axe

Not a good day to be running a car company. GM is expected to announce its CEO’s resignation and Peugeot (PEUGF.PK) fired its CEO Sunday.

Reports are that Rick Wagoner will resign from the helm of GM Monday after President Obama addresses the issue of additional aid for the company. Though it’s a little unclear from the reports, it sounds like Wagoner's resignation was requested by the administration.

Given that GM has not yet produced a workable plan and that the government is going to give them more time and probably more money, something was needed as lipstick for the pig. Axing a CEO works well as a diversion.

Better to be a bank CEO than an auto maker CEO.

more: here and here

Comments

[john s. gordon:]

well if you are a bank CEO at least you were a friend of Hank & got a bailout w/o any business plan. auto CEO's are held to a higher standard.
> jack

Mar 30 08:18 AM

[elcopone:]

Good point John, but this was needed and many years in the making. Remember, Wagoner was the one who said Hybrids weren't worth investing in and decided to focus only on SUV's and trucks.

Mar 30 08:26 AM

[notsosmart:]

i dumped GM @ $22 when the cut the div. by 50%. that was the time the board should have dumped w a goner.most of the bod's dont work for the shareholder only serve their own interests.

Mar 30 10:28 AM

[IMWatchingU:]

Anyone got a clue if Wagner's "decision" incurred a contract clause? IS he leaving with a golden parachute? He is leaving....

WILL GM buy a clue and inact a 20-30% compensation reduction in the longer term replacement. 15 million compared to 900k for Toyota seems part of the problem. You figure at least the top 5 levels make more that the top at Toyota. Add that together and you have a LARGE pool of money possibly 100x that of Toyota executive compensation.

Mar 30 11:08 AM

[wbachmann:]

I have no clue as to Mr. Wagoner's competence as leader of a gigantic enterprise. However, given our current administration's preference on green issues, our long standing neglect in not adopting a realistic energy policy for the nation, inspite of clear warnings over 35 years ago, the consumer being enamored with SUV's and trucks - what is a man to do. The automakers current financial mess has its origins in caving in to union demands over decades of relative prosperity and our current economic collapse, reducing vehicle sales to drastic levels. Mr. Obama's path towards abandoning the industry will come to haunt him.

Mar 30 11:49 AM

[KT D:]

It's so weird that the Obama administration has been focusing on paying off GM's CEO, Wagoner, and reworking the auto industry, yet only really bailing out the banks that have been proven guilty of mishandling money/not doing their jobs. I agree that the auto industry needs help--and certainly GM has been continually suffering for the past year--but at least Wagoner was doing his job honestly. I truly think that, if Obama wants to risk governmental intervention into businesses by firing CEOs and reorganizing industries, then he should have at least been consistent and most likely started with the ever-depressing banks (namely, Fannie Mae and Freddie Mac). I watched an interesting video on all of this at newsy.com earlier today. It's worth watching:

www.newsy.com/videos/o.../

Mar 30 04:57 PM

[Deweyp:]

Good luck and God speed Rick. I honestly believe you were the right guy for the job and am vert sorry to see you go. I know Mr Henderson is a capable man and will give it his all, but you will be missed. Your treatment by congress in November was cruel and unwarranted, but you handled it well. Thank you for the devotion to the job and GM employees.

Mar 30 05:57 PM

[a. palmer jr.:]

I couldn't say it any better than the above..it took GM several years to get in that mess and I don't think it will be cured very soon. I guess Pres. Obama has seen too many baseball games...if they don't win, fire the manger.

Mar 30 09:29 PM

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