US: GM eyes new CFO as CEO search continues
General Motors will be briefed on the search for a new chief executive by next month as a recruiting firm compiles a short list of candidates, a source 'familiar with the process' told US media.
The automaker has also identified a new chief financial officer and could make an announcement on that key position by the end of the year, GM chairman and acting chief executive Ed Whitacre has said.
Taken together, the steps demonstrate how GM's board under the oversight of Whitacre has nearly completed the process of replacing or reassigning the senior leadership team that steered the automaker through bankruptcy five months ago, Reuters noted.
Whitacre, 68, has moved to put his own stamp on GM's management and strategy since becoming chairman in July. Since taking over as GM's acting CEO last week, he has also made clear the automaker must move faster to win back customers, pay back the US government and return to profitability.
GM has asked recruiters Spencer Stuart to find a permanent chief executive in a process that will consider candidates outside the auto industry, the anonymous source told the news agency.
Spencer Stuart also handled the search for Whitacre, who became acting chief executive after the board last week asked former CEO Fritz Henderson to resign.
GM had no comment on the search firm's identity.
According to Reuters, Whitacre did not address the CEO search or how long he will be acting chief executive during a 38-minute web chat with reporters on Tuesday night.
He said GM was close to hiring a replacement for CFO Ray Young.
"We're close and have narrowed it down and have a real good candidate," Whitacre said, adding that GM "could have some news in two or three weeks."
Young has been in discussions about moving to GM's international operations based in Shanghai, sources have told Reuters. GM has declined to comment.
With the replacement of Young, GM's entire top management team will have changed over this year, the report added.
Vice chairman Bob Lutz, 77, who had been charged with heading GM's marketing efforts, has been made an adviser to Whitacre.
"His role has changed a bit. He is senior adviser to me and top management," Whitacre said. "We look forward to learning a lot from him."
Corporate search executives reportedly expect GM to stay within the ranks of the US executive class for a new CEO, but said it would face challenges because of a government-imposed limit on executive pay and the strong presence of Whitacre.
Former AT&T chief executive Whitacre has pushed GM's sales organization to bring down its industry-leading spending on incentives even as the automaker struggles to defend its share of its domestric market, executives have said.
"He's pretty clear that he wants results," Susan Docherty, GM's recently appointed head of US sales and marketing, told Reuters on Tuesday. "If he sees things that he thinks are off track, he's going to hold me and the team accountable."
When asked how long GM's new executive team, including Docherty, have to show results, Whitacre said "not long."
Corporate talent experts said a new GM CEO would have to be able to work beside the strong chairman. Some also believe it is possible that Whitacre would opt to keep the CEO job.
"Ed has been acting more like a CEO than he has chairman and as a result of that, somebody coming into this role is going to have a very high opinion, high velocity, high visibility chairman who has already shown that he is the leader of the board and is making pretty quick decisions," Brian Sullivan, CEO of executive search firm CTPartners, told the news agency.
"What you do need almost is more of a chief operating officer than a chief executive officer because this certainly looks to be Ed's show, but he needs someone to implement the day-to-day," Sullivan added.
Jeffrey Sonnenfeld, a professor at the Yale School of Management, said he also expected that a new CEO would have a "muted role" at GM under Whitacre after the unexpectedly swift move by the board to break with Henderson.
"The ego issues here are very considerable," he said.