Former AT&T CEO Edward E Whitacre Jr to take over as GM chairman

10 June 2009

Edward E Whitacre Jr, former AT&T Inc chief executive officer, who was appointed the ailing auto major GM's chairman says he considers steering the biggest US automaker after bankruptcy as a ''public service''.

Whitacre who was instrumental during his 17 year tenure as AT&T CEO in building the company into the largest US provider of telephone service will lead a 13-member board with six incumbents as the Detroit-based GM completes the reorganising procedure in the court with the help of US Treasury.

He will have on the board interim chairman Kent Kresa, CEO Fritz Henderson and holdover directors Philip A Laskawy, Kathryn V Marinello, Erroll B Davis Jr and E Neville Isdell.

According to James Kahan, a former AT&T colleague of 20 years Whitacre took the job out of patriotism to not let an American icon go down with a great fight. Whitacre was the choice of the Obama administration as it propped up the ailing GM during its reorganisation according to Kresa.

Meanwhile, GM has initiated a selection process to identify four more directors who will serve on the board of the reorganised company. With the Canadian government and the new United Auto Workers' Voluntary Employee Benefit Association nominating one director each the board will have 13 directors.

On 1 June, GM announced its three domestic subsidiaries had filed voluntary petitions for relief under chapter 11 of the US Bankruptcy Code in the US Bankruptcy Court for the Southern District of New York. The company's reorganisation plan provides for the sale of all its global assets to a new entity that will operate under the GM name. That sale is subject to court approval.