Tuesday, June 9, 2009

GM New Chairman: Former AT&T Chief (Edward E. Whitacre Jr.)

General Motors named Edward E. Whitacre Jr., the former chief executive of AT&T, on Tuesday as the chairman of a recast board to oversee the “New G.M.” that will emerge from bankruptcy.

G.M., which filed for Chapter 11 bankruptcy protection on June 1, said Mr. Whitacre would be joined on the board by Kent Kresa, its current interim chairman, and G.M.’s chief executive, Fritz Henderson.

Four other G.M. directors will keep their seats, but six — including the long-time lead director, George Fisher — will retire before G.M. is reorganized in bankruptcy court.

The overhaul of the G.M. board was a condition set by the Treasury Department for continued financial assistance to the insolvent automaker.

G.M. has received $19.4 billion in federal loans since December, and will get another $30.1 billion in government aid.

The sweeping changes in the board room follow President Obama’s decision to ask Rick Wagoner, G.M.’s previous chairman and chief executive, to resign in March.

Mr. Whitacre’s appointment reflects the need seen by the president’s top auto advisers to put an outsider at the top of G.M., which will be 60 percent owned by the federal government when it comes out of bankruptcy.

“I am honored to be able to serve G.M. at this critical juncture and take part in its reinvention,” said Mr. Whitacre, who was chairman and chief executive of AT&T, and predecessor companies, from 1990 to 2007.

Several other candidates for four other board seats are still being considered by Steven Rattner, one of the leaders of Mr. Obama’s auto task force.

Upon Mr. Wagoner’s resignation on March 27, Mr. Kresa was tapped by the government to act as interim chairman.

He said Tuesday that the appointment of Mr. Whitacre was “a very auspicious beginning” for the company.

“We look forward to working with him to complete the reinvention of G.M. and maximize the enormous potential of this new enterprise,” Mr. Kresa said.

Besides Mr. Kresa and Mr. Henderson, the directors who will remain on the board are Philip A. Laskawy, Kathryn V. Marinello, Erroll B. Davis Jr. and E. Neville Isdell.

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