GM CEO Rick Wagoner to Step Down Immediately

[crazy_cooter]

I can't see how this is good news. I just cannot see Rick stepping down if the plan tomorrow is beneficial to GM shareholders. No matter what, GM cannot afford this at this time. It certainly won't help sales in the near term.

Unless of course, the only way to save the company was that he was blackmailed into stepping down. Thoughts?

"Stepping down" can also be code phrase for "avoiding legal action" - I guess technically it's more like cashing in your chips while you're ahead. The Enron execs didn't take the hint and got pummelled with not only civil but criminal litigation. Maybe Rick is predicting an investigation and wants to cut ties to avoid association with the mobsters up in Michigan (or Washington). Anyway, I'd like to hear someone with a legal background chime in on whether a suit against a corporation (let's say GM) can include officers who severed ties with the corporation prior to a) the infraction date or b) the severance date.

Disclaimer - I'm not an exec in any corporation and am not trying to seek free legal advice to get myself out of a dilemma

[KingFreep]

That's an absurd comment King. You're forgetting one very important point.
GM is a bankrupt company and the only way they can survive is with Govt/tax payer's money. So doesnt it follow from there that the Govt has the right and responsibility to protect the tax payer's investment by firing the CEO who was in charge during the time they lost 82(?) BILLION dollars and went bankrupt.

To answer your question, NO IT DOESN'T. The tax payers NEVER SHOULD HAVE INVESTED IN GM IN THE FIRST PLACE. If they were bankrupt, they should have been allowed to fail. Other companies would have picked up the slack IF there was enough business to support it. Obama is propping up the auto makers to save the Unions who paid him MILLIONS in campaign money. Government has NO business trying to run business.

[raltnjz]

It seems to me that GMC may need a bit of a change if we are paying for this with taxpayers dollars. My only regret is that it feels like a double standard. The CEO's on wallstreet are not being forced out and they play a large part in this market downturn. HMM??

[lloyd Handwerker]

If only it were so simply King. You obviously have a strong ideological view and thats fine. I think the Auto task force which is forcing concessions on
EVERYONE including bond holders and unions, is doing this at a time of serious recession in order to save the jobs of many hundreds of thousands of people which rely on the auto industry for their livelihood. That massive loss of jobs would have a spiraling effect which could send this country into a much deeper recession or depression. I dont believe they are following this path simply because of campaign contributions. If you have been following the negotiations you should understand that.
Hopefully someone will replace Rick Wagoner who will have a better ability to
guide this company into the future.

[lloyd Handwerker]

Weren't the heads of AIG (guy in now is only there since 6 months ago and was recruited by Hank Paulson) and Indy Mac and Merrill Lynch and others replaced?

[bababoooie]

Let GM file Bankruptcy. Screw the Small business owners. Screw the small investors. That's not my opinion that's what posters want with GM filing for BK. The first & foremost event would be a reduced amount GM would owe any suppliers for services rendered. A BK by GM or Chrysler would do more damage to the smaller businesses that to GM or Chrysler. UAW would have to renegotiate (Again Screw the common worker) middle management professionals would lose even more than the UAW. The Upper level management takes away benefits from the middle management & then shows the UAW what "MANAGEMENT" gave up numerous benefits. Typically the UAW give up less but then again Middle management never gets it back! Strict Regulations need to be placed on the UPPER level management and past practices need to be brought to light. I Say not to BK and HELL YES to REGULATION of the BAILED OUT AUTO COMPANIES!!!

[KingFreep]

Weren't the heads of AIG (guy in now is only there since 6 months ago and was recruited by Hank Paulson) and Indy Mac and Merrill Lynch and others replaced?

Yes. By the stockholders. Not at the command of the President of the USA...a guy who has never run so much as a lemonade stand. That's the part that bugs me. I don't care if the CEO is replaced. I Do care that he is replaced on the order of the President of the United States. This is dangerous territory. Chavez operates in much the same manner.

[Greenland]

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[lloyd Handwerker]

This is really silly season King. You obviously never liked Obama and you
are looking for any excuse to bash him. Comparing him to Chavez is the height of absurdity. When you are President of the US you can make the decisions you want. Right now Obama is making the decisions he thinks are best for the country. Disagree with him but stop with the OBVIOUS talking points and start thinking for yourself.

[KingFreep]

This is really silly season King. You obviously never liked Obama and you
are looking for any excuse to bash him. Comparing him to Chavez is the height of absurdity. When you are President of the US you can make the decisions you want. Right now Obama is making the decisions he thinks are best for the country. Disagree with him but stop with the OBVIOUS talking points and start thinking for yourself.

Yes, I never liked Obama's politics. And the decisions he is now making is the reason why. He's the President, not the King. I don't doubt that he's doing what he thinks is right. I disagree with his decisions. That proves I AM thinking for myself, rather than accepting everything he says and does without question. My opinion of Bush wasn't all that different.