By on January 25, 2010

The Detroit News reports that General Motors will call off its search for a permanent CEO today, as Chairman and interim CEO Ed Whitacre will become the firm’s permanent CEO. A press conference is scheduled at the Renaissance Center for 11:30 ET today, but at least one question appears to have been answered already. More details as they become available.

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18 Comments on “BREAKING: GM Calls Off CEO Search, Whitacre Becomes Permanent Chief Executive...”

  • avatar

    Is he going to be chairman of the board too? I thought all the experts thought it was better that the CEO and chairman should be separate?

    (So much for the Tim Cook of Apple becoming CEO, I thought the chances of that happening was near zero.)

  • avatar

    Seems much like when Dick Cheney headed up Bush’s VP selection committee back in 2000. Surprise, surprise, surprise.

  • avatar

    Just long enough a search to make it look good

    Will be interesting to see if they blame government pay caps for their inability to attract outside talent. IMO Big Ed was always the game plan. His ability to turn around huge, moribund, clueless companies is what got him in the door, and what GM needs.

  • avatar

    Not sure that this is good news. He’s not a GM lifer, but he’s not a car guy either.

  • avatar

    I wonder how much the search cost? Truly money well spent. I also have to wonder, if the search was “real,” how many potential candidates said, “Gee, it’s a great honor to be considered but no, thanks.”

    • 0 avatar

      Not nearly as much as placement would have.

      Not to really cut in on the GM bashing (they just cut my grandmother’s health benefits off – so I’m on the wagon) but this is at least cost-saving and, let’s face it:
      What were the odds they were going to get someone good enough to make a difference?

      Honestly, even if they got Tim Cook (above, and the wildassrumor entry) — or someone else that truly knew how to manage money, it’d still be an uphill battle.

      Whomever (in a fantasy world) could turn that company towards success (not just out of the current nose dive) but actually FIXED everything would end up being sung as a modern American Folk hero 100 years from now . . . You’d need someone that gave and got respect from everyone, had good business sense, and a strong commitment to make it happen . . .

      Last time I checked, JFK and Teddy Roosevelt were dead :(

  • avatar
    Facebook User

    I firmly believe Gov’t Motors did all it could to find a new CEO… and couldn’t. (Why would anyone qualified to lead GM, WANT to lead GM… especially on what the feds were willing to pay?)

    So the job is Whitacre’s by default. Oh joy.

  • avatar
    Paul Niedermeyer

    I saw that coming. Ed is a guy who loves power and to call the shots, and wasn’t about to give up his latest project to someone else.

  • avatar

    As I recall, TTAC called this 3 months ago.

  • avatar

    Someone mentioned on a board I’m on:

    1) Whitacre and the management team accumulate stock options pre-IPO.
    2) IPO goes down, Gov’t checks out, Whitacre et. al. collect a few hundred mil and leave company “in good hands,” ie: with some other suckers.
    3) Repeat bailout process.

    • 0 avatar

      For the record, stock options are expensed and will have to be reported in earnings. Also, stock options require a price for the stocks to be set, I don’t know enough about this since it isn’t being traded on the market yet as to how they would be able to price it right now. With stock options, you make money on the difference in the price of the option and the selling price. So, the option needs to be priced lower than then current price of the stock. Again, I don’t know how it works for pricing when the stock isn’t currently traded. Stock options typically need time to vest as well. They may not vest for 5 years which also requires you to stay there the whole time.

      From my understanding, salaries over 500k must be paid in stock that must be held long term.

      That being said, I am not a fan of the CEO/Chairman job duty. To me, it would be better if they were separate.

  • avatar

    More leadership masturbation.

  • avatar
    Gardiner Westbound

    The Government Motors’ Board of Bystanders are as competent as the previous Board.

  • avatar
    Robert Schwartz

    We are the ones we have been waiting for.

  • avatar

    I’d just finished bring my resume up to date. Dammit.

  • avatar

    Great news, it’s settled. All the hard works done, just some tweaking needed now.

    I believe a Gnomes reference is appropriate here:

    Phase 1: Collect Underpants
    Phase 2: ?
    Phase 3: Profit

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