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GM gets 5 new board members appointed by U.S., Canadian governments

 
2 1,771 views Jul 25, 2009

Each member of the board who is not a GM employee will be paid $200,000 annually for their services

Each member of the board who is not a GM employee will be paid $200,000 annually for their services

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General Motors' recent bankruptcy proceedings have seen the company transformed as it leaves behind failing assets, and according to the company these changes have also been reflected through a restructured board of directors. Five new members have been added to the board following the bankruptcy, with major stakeholders being given discretion to hire new board members depending on the size of their stake.

For the U.S. Treasury, which now owns roughly 68% of GM, the government department was able to select 4 of the new 5 board members. The Treasury appointed Daniel F. Akerson, David Bonderman, Robert D. Krebbs and Patricia Russo as their designated board members for the new company. Akerson is a director at the Carlyle Group, a private equity firm based in Washington D.C. that is ranked as the world's largest.

Meanwhile, the Canadian government also has a stake in the new GM, and although it is not as sizable as the U.S. Treasury's, its 11.7% stake affords the Canadians a spot on the board to designate someone of their own choosing, which in this case was Carol Stephenson, a business school dean and director of ING Canada.

According to GM, there will be a total of 13 directors on the board, including the 5 new additions that will join current board members such as CEO Fritz Henderson and Kent Kresa. Each of the non-GM executives will be paid $200,000 annually for their services.



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Comments (2)

  1. ma_HECTOR avatar HECTOR Posted: 7/26/2009 5:46am PDT

    These are news only government burocrats could love. And we all know the UAW and other underachievers at GM are loving it too: they will continue business as usual on taxpayer's money.

    There are more than a few jokes that could be told about this situation though: *what do you call a camel? A horse built by committee*. With 5 new govt burocrats on the board this is what we can expect from the new GML http://www.youtube.com/watch?v=rAqPMJFaEdY
     
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  2. By  glucosamine sulfate Posted: 12/23/2009 10:18pm PST

    Sounds fair to me. Based on GM's market capitalization, it would have been cheaper for the US to just buy the company outright instead of loaning it billions of dollars of pissing money. So it's only modestly fair that the US gets to pick a director or six.
     
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