Wednesday, June 07, 2006

What's Going On At GM

General Motors has just had its shareholders meeting, and Oh how I would have loved to have been there.

The shareholders were not happy and made a few changes, starting with how the board was elected. A lot was said but mostly, from what I read, Wagoner's speach was little more than a pep talk. I find it troubling that people were discussing global warming at the meeting, but I guess you can't get away from that canard.

I have to agree with the critics who wonder why someone who owns ZERO stock in the company is on the board of directors, even if he is proxie for Kerkorian; he should own some stock if he is on the board.

I also have to agree with the idea of splitting the CEO and the Chairman of the Board. I do not believe it is wise to have one man filling both seats, unless he has controlling stock in the company. It is too bad that one failed.

Regardless of the optimism coming from the board at this meeting, GM, and its employees and stockholders, are still in for a rough time. The changes that they are now making should have been made years ago, but the arrogant "We're the best, don't question us!" mindset that they had for too many years has taken its toll and it will be years before GM finally catches up to the rest of the world.

1 Comments:

Blogger Tim said...

I think both Ford and GM are going downhill very fast and our state will really feel some pain in the next five years.
An investor would be a fool to own stock in these companies now. I think that unless they get a gov't bailout, they are sure to collapse.

9:50 AM  

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