RSS
General Motors has a history of finding its leaders from within. With the recent departure of its last CEO, Fritz Henderson, the company may be forced to look outside the company for some fresh talent. If it so, the government-mandated $500,000 salary cap may be a hurdle in recruiting…
Interim CEO Ed Whitacre said that the pay cap would be a major issue in finding outside talent. However, the cap may be augmented by company stocks, which must be held for long-term investment. Short-term bonuses have been banned along with “golden parachute” severance packages.
Industry analysts have questioned if GM could source a turnaround leader with its limited compensation packages. “Who would, with his right mind, take this job without strong protection after they fired two chief executives in eight months,” Logan Robinson, a longtime auto executive, told Reuters.
GM needs “a transformational leader, not an incremental leader who tinkers with the existing system,” said Richard D’Aveni, professor of strategic management at Dartmouth College. “GM needs somebody who thinks much more like a consumer products organization than an automobile group.”
Source: Reuters
MOST COMMENTED ON