Earlier today, GM Chairman and interim CEO Ed Whitacre delivered a statement stating that the GM CEO search is complete. The new CEO?
Ed Whitacre.
I’m a bit disappointed in the choice. And not because I’m bitter it wasn’t me.
I’m disappointed because I believe in Corporate Governance. I believe the CEO and the Chairman of the Board are separate positions for a reason. I believe that a board needs to be independent from a firm’s management, so that they can act in the shareholder’s best interest. A board whose chair is also the CEO is less likely to act independently solely because of the CEO’s presence.
And unfortunately, this is just more of the same for GM. Rick Wagoner served as both the CEO and Chairman, and presided over a massive slide in market share, stock price, and profitability. Was that truly in the best interest of GM?
Some other sites have stated that Mr. Whitacre wants to remain CEO because he’s enjoying the spotlight. I don’t think that spotlight is exclusive to the CEO position at GM. An active chairman could see just as much of the spotlight as the CEO; in fact, the chair publicly supporting the CEO may help GM’s image with their shareholders and improve stock prices.
So, who do I think GM should have picked for the CEO (other than myself of course)?
Bob Lutz. Lutz is the inside-outsider at GM. He’s been around for a few years, learned how to navigate the corporate structure, and championed some of the cooler GM products we’ve seen in the past decade. He’s worked for GM, Ford, BMW, and Chrysler, an impressive resume indeed. Most importantly, he’s a businessman AND a car guy. Ed Whitacre said he was going to learn about cars. Lutz has probably forgotten more than he’ll ever learn. He’s delivered some great speeches over the years, he’s used to the spotlight, and I think he understands the industry better than most. Considering GM’s afraid of the learning curve an outsider would need (this was the justification given for Fritz Henderson getting the job last year) Lutz fits the qualifications better than most.
Of course recently they said they want someone younger. Ed Whitacre doesn’t really fit with that criteria either.
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