GM will focus their CEO search on outsiders, says Detroit News. The Detroit automaker is deep in the process of finding a CFO, and after Tuesday’s resignation by CEO Fritz Henderson after only 8 months in office, they must also now find a viable Chief Executive.
Henderson was promoted to CEO in March, when President Obama’s auto task force pushed out then-CEO Rick Wagoner. Henderson was previously GM’s COO. Right now the company is in the hands of the board of directors and their chairman, Edward Whitacre Jr. Many are not surprised by the move however, as it is noted that the auto task force considered replacing Henderson with Wagoner, but decided to promote him rather than move out both the CEO and COO in the middle of a complex bankruptcy.
Henderson has clashed with the board from the beginning. They previously turned down Henderson’s team’s recommendation to sell German unit, Opel as well.
It is going to be a rough search for Whitacre and the board however, as any pay package will require United States Treasury Approval, as the government still retains an almost 61% stake in the company. GM also plans to remain on track with their late 2010 targeted IPO.
-By Stephen Calogera
Source: Detroit News