U.S. Forces Out GM President
Add comment March 29th, 2009
So what do you think about this government intervention into the private sector? Well, I guess you could say that “he who owns the gold sets the rules” (aka: Golden Rule).
An interesting parallel and one that I experienced earlier in my career, is when a Venture Capital firm puts money into a growing firm, they will often make it a condition that the founding entrepreneur/President take a non-management position in exchange for the needed investment. Or they could force the founder out and bring in a professional manager. This helps the investor better safeguard their investment with presumable objective actions.
In this case, I believe the US is correct in forcing out Wagoner. Why? I don’t know the details, but sometimes, a long term executive hangs on to the “way it was”, or has some other “baggage” that limits his ability to effect change.
Look at Ford and Chrysler…both have short term CEO’s that are making changes without the history behind them. These two seem to be on the road to recover, it’s time for change at GM.
Here’s the rest of the story…. ForceOut
