So GM today, along with posting solid 2nd quarter financials surprised everyone with the announcement that CEO Ed Whitacre is stepping down.
I think this is a good sign, and not because I have anything against Ed Whitacre.
Anytime a company looks to raise money, one the first questions from the financial community is about the management team. Who are they and how long are they going to be running the company?
In Ed's case that would been a tough question to answer fully as he is 68 years old and presumably looking forward to retirement. (68 doesn't seem that old to me these days, but we will save that for another time...)
Let's think this through. If you were an investor; you listened to the road show, bought into the story--and above all the credibility of management, wouldn't you feel a bit sucker punched if soon after the IPO you learned that a key member of the team was moving on?
So the GM board decided to act preemptively and resolve this before the issue had even been raised. Having a board that thinks ahead, anticipates and takes action is a good thing.
Of course, this now raises new questions along the lines of "Who is the new guy?" Questions that GM will have to answer fully in the next couple months.
There are plenty of questions about the IPO, new product, continued financial success, etc. But one this issue, I think the board made the right call. A good sign that at least at the top, there is a new GM.