Now that General Motors has filed for an initial public offering with the U.S. Securities and Exchange Commission, we’ll learn a lot of inside details we didn’t know before. According to its prospectus filed with the Securities and Exchange Commission, GM paid analyst Stephen Girsky more than $1 million to advice the automaker on other alternatives to saving Saturn before shuttering the brand.
GM said that Saturn’s “engagement” began in early 2009 and was completed before Girsky was named to its board in July 2009. While going through its bankruptcy filing case that split GM in to two parts, old and new, new GM was required to pay Girsky a fee of $1 million for advice on Saturn.
If that wasn’t enough, while president of consulting firm SJG, Girsky was paid an advisory fee of $400,000 and around $50,000 in reimbursed expenses from old GM for consulting services in 2009 related to Saturn,.
GM had planned to sell Saturn to Penske Automotive, but the deal fell through after Penske failed to find suppliers for future Saturn products beyond 2011.
– By: Stephen Calogera
Source: Automotive News (Subscription Required)