The chief executive and chairman of troubled US car maker General Motors will step down at once, at the request of Barack Obama. --BBC
In my workshops with board of directors of community and faith-based organizations I often use boards of equity corporations as examples of both good and bad behavior of boards, CEO's and to illustrate the concept of ownership.
Recently I have been commenting that the CEO's from US automakers and financial institutions who are sitting in front of Senate hearings explaining why their companies have failed to produce a profit or even enough money to sustain ongoing operations demonstrated that boards of directors are not achieving accountability on behalf of stockholders. My understanding that a CEO should lead an equity corporation to achieve increased value of equity for stockholders would be the only criteria for continuing employment.
So, the boards didn't live up to their responsibility, stockholders didn't act at a stockholders meeting, therefore, the Whitehouse took some kind of action. GM's CEO will be stepping down at Barack Obama's request. I'll post more news as I find it. BBC is reporting it here.
Los Angeles Times General Motors CEO Rick Wagoner to step down.
Wall Street Journal: Chrysler CEO Not Likely To Follow GM Wagoner's Fate.
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