Following the forcible removal of CEO and chairman Rick Wagoner, the Obama administration is gearing up to clean house on the board level as well, reports the Washington Post. Obama’s automotive task force plans to consult with GM in the coming months to determine the new identity of the sinking auto giant’s boardroom.
Though Obama said on Monday that the government “has no interest in running GM,” a White House official confirmed that the auto task force will in fact be engaging in discussion with officials at GM regarding the new board. “There will be continuing coordination as decisions about the leadership of the company are made,” said the official.
With their roles newly split, CEO Fritz Henderson and chairman Kent Kresa will be looking to replace a majority of the GM board by August, according to Kresa.
Obama ousted Wagoner on Sunday after eight years as CEO and five as chairman. GM shares had dropped over 90 percent since his taking the chief executive position, and the company had lost $82 billion over the last four years.
The government’s active role in shaping the new GM board will likely come under fire from a private sector already apprehensive about over-involvement. Some legislators agree. “They have opened Pandora’s box,” said Senator Bob Corker (R-TN). “There is no question that this country is moving down a very different and foreign path. We have crossed this threshold: We own this company and we are telling it what to do.”