Meet Chrysler's New Board

There are a few familiar faces on Chrysler’s newly complete board, which was announced over the weekend (via Chrysler Media). But not many. Chairman C. Robert Kidder, Sergio Marchionne and Fiat Powertrain CEO Alfredo Altavilla are the previously-announced, or otherwise-obvious picks. No surprises there. The other picks? Let’s take a look, shall we?

First up, we have the politically well-connected, namely James J. Blanchard. The former Michigan Governor, Ambassador to Canada, Congressman and Regulatory and Government Affairs honcho at one of the world’s largest law firms leaves little doubt as to why he’s on board. Chrysler’s going to need a D.C. ninja, steeped in the traditions of the Potomac two-step. Blanchard fits the bill. Is it any surprise then that Blanchard was the UAW’s pick to represent its VEBA stake?

George F.J. Gosbee (brief bio here) is the energy man, having managed several energy funds and founded Tristone Capital, a global energy advisory firm. He’ll be reading the energy-price tea leaves, and angling for the Canadian interest; according to the Wall Street Journal, Gosbee was the Canadian Government’s single pick on the Chrysler board.

Scott Stuart, founder of Sageview Capital and former partner at Kohlber Kravis and Roberts is likely a Kidder bagman, having served with the new Chairman on Duracell and Borden Chemical. He also served on the board of something named “Aveos Fleet Performance Inc.” which (it turns out) is the in-house maintenance service for Air Canada, not (as one might presume) the worst rental fleet ever. He was reportedly picked by the US government.

The airline theme continues with one of Fiat’s picks for the Chrysler board, Stephen Wolf. Wolf worked at Pan American World Airways, Continental Airlines and Republic Airlines, and was Chairman and CEO of United Airlines from 1987 to 1994. Wolf oversaw the handing over of 55 percent of UAL’s stock to employees in return for salary concessions. Sound familiar? Wikipedia notes that “the financial outcomes of the Employee Stock Ownership Plan (ESOP) were decidedly uneven for different players. As part of ESOP agreement, United CEO Wolf resigned and took a consulting job with Lazard Freres, the very investment company he had hired to advise United’s board during the ESOP buyout process…rank and file employees were locked into their stock, which got wiped out in the eventual bankruptcy.” Sounds… promising.

Yet another airline man, Douglas Steenland, was picked by the US Government. The former Northwest Airlines CEO apprently fared better than Wolf, although bankruptcy and incessant labor issues were a hallmark of his firm. Northwest dumped stock on its employees in 1993 and refused to buy it back as promised shortly before Steenland was named to the firm’s top CEO spot. Why is employee ownership such a recurring theme here? Oh right…

Filling out the US Government picks is Ronald Thompson of the Teachers Insurance and Annuity Association. Thompson provides some of the only auto sector experience on the new Chrysler board (outside of Fiat’s Marchionne and Altavilla), having grown his Midwest Stamping Companyinto a first-tier automotive supplier. Given Chrysler’s abysmal record of supplier relations, let’s hope Thompson can develop a culture of coexistence between ChryCo and its suppliers.