In a recent speech at a Texan university, GM’s chairman Ed Whitacre criticized the current salary caps set by the Obama administration for GM’s senior executives by pointing out the difficulties GM is facing hiring quality replacements.
Whitacre spoke in detail in regards to both the current challenge of hiring competitive individuals with restrictive pay offerings, as well as the recent failure to find a buyer for Opel. Whitacre went as far as to urge the president to consider less restrictive pay caps in order to increase GM’s ability to find the best talent available for its key roles.
An example of GM’s inability to obtain new talent can be found with its CFO position – currently held by Ray Young, who was asked to step aside back in September. Young is still the acting CFO for GM as they have not yet found a suitable replacement.
“To find top-level people where you need them, that’s a more difficult thing to do at that salary level,” Whitacre said. “I don’t think (the caps) will be lifted, but hopefully they’ll be modified.”
The other hot topic that Whitacre touched on was the tumultuous experience that has become the now failed sale of GM’s European brand, Opel. Whitacre has spoken in very little detail concerning GM’s shopping around of Opel since becoming one of the 13 board members for GM as they emerged from bankruptcy back in July — until now.
Whitacre said, “It’s been a confusing decision, but I don’t think it was handled badly.” Whitacre also told reporters, “The circumstances have changed from the time this started. The financial part of the business got better.”
As it stands Whitacre and the board support GM’s CEO Fritz Henderson in his decision to continue to hold onto the Opel and Vauxhall brands.
