Re: GM Chair-CEO Gets the Boot

Eisboch wrote:


"HK" <payer33859@xxxxxxxxxxx> wrote in message news:7_6dnZDzZue1ZFLUnZ2dnUVZ_vOdnZ2d@xxxxxxxxxxxxxxxx


Since the taxpayers basically own GM, the chief representative of the taxpayers should be able to tell GM's CEO that it is over. That company, and many other corporations, need fresh blood capable of leading their companies in new directions.



This is going to be interesting in terms of how it is handled.
I am not questioning the request for Wagner to step down, but I am interested in how his replacement is selected.

To my knowledge (I might be wrong) the bailout money received to date was not given in exchange for stock in GM. Basically the government money is subordinated debt, just like a bank loan.
There's no voting rights associated with it.

"Requesting" him to step down is probably a condition for additional bailout money.
That's perfectly legal. But for the White House (Obama) to install a new CEO without a vote from the GM Board of Directors (and possibly a shareholder's meeting and vote, if he is also on the board) might present some interesting legal issues.

We'll have to see what happens.

Eisboch


We have to get away from the idea that these damned boards of directors are competent. Absent evidence, I think they are not. And we have to chop up huge companies whose failures can kill our economy. Hugeness is not serving the public's interest.
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Relevant Pages

  • Re: GM Chair-CEO Gets the Boot
    ... To my knowledge the bailout money received to date ... shareholder's meeting and vote, if he is also on the board) might ... We have to get away from the idea that these damned boards of directors ... Hopefully Obama will send GM to chapter 11 where they too can get kicked ...
    (rec.boats)
  • Re: GM Chair-CEO Gets the Boot
    ... I am not questioning the request for Wagner to step down, but I am interested in how his replacement is selected. ... To my knowledge the bailout money received to date was not given in exchange for stock in GM. ... Basically the government money is subordinated debt, ... But for the White House to install a new CEO without a vote from the GM Board of Directors might present some interesting legal issues. ...
    (rec.boats)
  • Re: GM Chair-CEO Gets the Boot
    ... That company, and many other corporations, need fresh blood capable of leading their companies in new directions. ... I am not questioning the request for Wagner to step down, but I am interested in how his replacement is selected. ... To my knowledge the bailout money received to date was not given in exchange for stock in GM. ... But for the White House to install a new CEO without a vote from the GM Board of Directors might present some interesting legal issues. ...
    (rec.boats)
  • Re: GM Chair-CEO Gets the Boot
    ... That company, and many other corporations, need fresh blood capable of leading their companies in new directions. ... I am not questioning the request for Wagner to step down, but I am interested in how his replacement is selected. ... To my knowledge the bailout money received to date was not given in exchange for stock in GM. ... But for the White House to install a new CEO without a vote from the GM Board of Directors might present some interesting legal issues. ...
    (rec.boats)
  • Re: GM Chair-CEO Gets the Boot
    ... That company, and many other corporations, need fresh blood capable of leading their companies in new directions. ... I am not questioning the request for Wagner to step down, but I am interested in how his replacement is selected. ... To my knowledge the bailout money received to date was not given in exchange for stock in GM. ... But for the White House to install a new CEO without a vote from the GM Board of Directors might present some interesting legal issues. ...
    (rec.boats)
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