GM's Whitacre: Salary Cap Imposed by U.S. Treasury Complicates Search for New CEO
DETROIT - General Motors Chairman and CEO Ed Whitacre Jr. confirmed what many where thinking: Pay restrictions put in place by the company's largest shareholder, the federal government, "absolutely" make finding a top hire difficult, reported The Detroit News.
As Reuters reported earlier this month, U.S. Treasury pay czar Kenneth Feinberg set new guidelines that cap base cash salaries for many of GM's top executives at $500,000.
Whitacre, who's acting as CEO after Fritz Henderson resigned last month, said GM doesn't have any CEO candidates yet and will not rule out hiring an insider.
He also announced GM will repay all of its $6.7 billion in government loans by the end of June, which could lift the pay restrictions, but did not offer a timetable for an initial public offering of stock.
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