General Motors has hired an executive-search firm to help find replacements for at least half of its 12 directors, reports The Wall Street Journal.
Interim GM Chairman Kent Kresa hired New York-based Spencer Stuart to line up new directors to join the board as early as this summer. Kresa and GM CEO Fritz Henderson were named to their posts in late March by the U.S. Treasury Department after the government forced out former chairman and CEO Rick Wagoner.
Kresa was hoping to conduct the board search on his own, without the help of an outside firm. However, because the government could own a controlling stake in the new GM, it is expected to name a small portion of the directors in addition to Kresa’s picks to represent the Treasury Department. The United Auto Workers union, which has been offered 39 percent of GM in exchange for health-care concession, will likely pick at least one board member in the future.
Spencer Stuart has advised or is advising board searches taking place at Citigroup, American International Group, and GMAC.
Under the government’s plan for GM, at least six directors will be replaced.