Friday, December 05, 2008

Replace GM's Board

General Motors (GM) is asking for billions of dollars almost immediately or they threaten to blow up and cause tremendous problems in the economy. Washington is reticent and smells a rat. Senators are not about to be buffaloed into writing big cheques and not knowing what they will get for it. While the Senators are examining the financial corpse of GM lets take a look at the board of directors that got us there. If GM is in this much trouble why are they not being replaced en masse. If the government does pour billions into the problem why should those guys keep their hands on the steering wheel.

Any competitive enterprise does not retain its losers. To survive you need to cull out the weak and inadequate. Replace the board immediately.