REPORT: GM's CFO Ray Young likely to resign
The last two chief financial officers at General Motors, Rick Wagoner and Fritz Henderson, eventually became CEO. Ray Young, who has been CFO at the General for less than a year and a half, likely won't make it to the top. The Detroit News reports that Young is going to resign his post as CFO in the weeks ahead, and he may be only one of a few departures among senior GM brass. The new GM board is meeting today to discuss and evaluate top management at the General, and Detroit News' sources say that Young, the GM finance department and President Obama's auto Task Force clashed on a few occasions during bankruptcy proceedings. The DN points out one instance when, in a June 2 press conference, Young said that the company would not disclose financial info post bankruptcy, as it would in effect be a private company. Predictably, that didn't play well with the public tax payers who in effect bailed out the embattled automaker. The next day, GM announced that it would give regular updates on its financial status.
Some are speculating that CEO Fritz Henderson will also be under the microscope during the Wednesday board review. In August, Bloomberg reported that Obama Task Force lead Ron Bloom reportedly gave Henderson a 60% chance of leading a GM turnaround, which isn't exactly a vote of confidence. We're guessing that it wouldn't look good for the Task Force or the new GM board to ditch another CEO just five months after getting rid of Wagoner, though, so removing the fledgling CEO is probably unlikely at this point.
[Source: Detroit News | Image Source: Stan Honda/AFP/Getty]
Reader Comments (Page 1 of 1)
Taglane 6:09PM (9/09/2009)
As for the Part about Henderson leaving, I really wouldn't have a problem with that. I think his heart is in the right place, but his mind isn't.
Maybe I'm pissed over this whole Zeta thing...
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Jimbo 6:24PM (9/09/2009)
Money men rarely have actual leadership skills and Wagoner, Henderson, Young, and Nardinelli are case in point.
Jimbo 6:18PM (9/09/2009)
I think it's time to ditch Maximum Bob too. I thought he was going to be a bit of fresh air when they brought him in, and he was with the Solstice and Sky, but he really hasn't been worth it.
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Gary 6:20PM (9/09/2009)
60% chance of success. Another example of the media creating negativity and self-fulfilling prophecies.
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Jimbo 6:26PM (9/09/2009)
I don't think a site like Autoblog is really going to have an effect on the buying habits of the general public (sorry, Autoblog) and hence won't have any bearing on whether or not Henderson succeeds.
ripslymemc 6:37PM (9/09/2009)
It's because hes Asian. I don't mean anything racial or comedic.
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Smokem 6:53PM (9/09/2009)
That's racist for sure. If it was a white dude you probably wouldn't even say anything.
Tael 12:57AM (9/10/2009)
threat from Kia, Toyota, Subaru..... WE HAVE A MOLE!!!
Jerry Hightower 7:10PM (9/09/2009)
I have a feeling Ron Brown will make several heads roll. Anybody he personally doesn't like, they're outta here!
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Bob H. 7:35PM (9/09/2009)
They all better make sure to donate to the Democratic/Union coffers.
If they want to keep their jobs.
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Santosh Tiwari 8:26PM (9/09/2009)
GM is oversized. Firing more than half of their senior management is a good decision. Its not like these folks will be out on the streets. It is a wise cost cutting measure. If he is talented, he can easily find a high paying million dollar+ job.
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Farmboy 8:31PM (9/09/2009)
You can almost see this guy's ego in this picture.
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xtasi 11:03PM (9/09/2009)
when the government has a big chunk of ownership, you are not a "private company". I'm glad at the management shake up. It's funny, how we expect the people that drove the company to the group to be the ones to bring it up. While we at it, let UAW select all management. I"m sure that will go well.
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Shamdiddly 7:10AM (9/10/2009)
This info is a bit bittersweet; of course, GM got where it's at by a combination of the (mostly) current leadership and the recent turn in the economy.
Still, I can't help feeling a little unsettled by the fact the people reviewing GMs corporate performance have no experience in the automotive industry, let alone any other industry outside of a university position or political career.
Good luck GM!
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Richard S. 1:22AM (9/11/2009)
This guy looks like he just came from a 1960's rock band. I could see him rocking with Roy Orbison.
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