Quote:
Originally Posted by Berean
You're kidding right? The Treasury Dept appointed 10 members of the board. For those who may be unaware, the Treasury Dept is part of the Federal Government, and the Secretary of the Treasury is a cabinet member of the Obama administration.
You might want to check this out: http://www.nytimes.com/2009/07/24/business/24auto.html
Some excerpts:
"The Treasury has appointed a total of 10 members to the new G.M. board."
"The Obama administration wanted nearly a clean slate of directors to ensure that the company would move away from practices that led to its downfall and last month’s bankruptcy filing."
The Obama administration wanted....... Really? That sounds kind of like they control it. |
Please, tell me which ones came from the government. As in, which ones were employed by the government prior to their appointment to GM's board of directors. I keep hearing "they were appointed by the Obama administration" (which, as majority shareholder I believe they are entitled to do) yet I haven't seen anyone that is actually a former government employee that has been placed there to run GM. If the government is running GM, wouldn't they have to have their own employees.... ya know... running GM? Not someone from elsewhere that they deem suitable, their own people. One from the EPA, another from Department of Transportation, and so on. I do not see any such people.
Quote:
Originally Posted by 1bad65
Unless they start putting people on the Board who have actual experience in the auto industry instead of Gov't beaurocrat types, I wouldn't bet on it. Notice how the Postal Service bleeds money, but it's two main competitors FedEx and UPS actually make money.
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Which ones are the government bureaucrats on GM's board of directors? The one from Coca Cola? The Dean of Economics from the University of Western Ontario? The former CEO of AT&T? The co-founder of an investment firm? Please clarify which individuals you are talking about.
And usually, the board of directors for large corporations have a rather broad background. Some obviously will need experience from within the industry, but others are chosen because they have related experience in other fields. For example, someone with medical management experience might be good if your company has an extensive healthcare policy. Investors are popular, as are people who have successfully ran any business for a significant period of time. The diversity reduces the amount of 'group think' that can happen with a room full of insiders because they all have different perspectives and priorities.