Posted on 03/30/2009 3:27:52 PM PDT by Tailgunner Joe
Watching the president of the United States effectively fire the chief executive of General Motors Corp. unnerved some other CEOs, who said the move crossed a troubling threshold of government involvement in the economy. But other executives said the government acted reasonably in removing Rick Wagoner.
"We know they'll oust a CEO. We know they'll change the board. Will they dictate terms of the union contract? And do you have to call your congressman to get a car?" asked James E. Rogers, chief executive of Duke Energy Corp.
Mr. Rogers said ousting Mr. Wagoner as GM's CEO raised questions about whether there are any limits to government action at companies that accept government money.
"Are we moving toward a system similar to the French government's ownership and control of corporations in France?" he asked. "If I was a banker that took TARP money, I'd find a way to give it back as soon as possible." ....
Scott W. Wine, CEO of off-road recreational vehicle, snowmobile and motorcycle maker Polaris Industries Inc., said Mr. Wagoner likely should have been removed as GM's head. But, he added, "I would have preferred to see it happen through bankruptcy.''
A third CEO also suggested that GM go through bankruptcy. But Timothy Sullivan, CEO of Bucyrus International Inc., said he had no sympathy for Mr. Wagoner or GM.
"When people have a vested interest in your business—whether it's your lenders or your shareholders—they have a right to have input into the governance of the company," said Mr. Sullivan, whose South Milwaukee, Wis., company builds mining machines. "If the government has a large vested interest in GM, which they do, then they should have a say so in how things are done."
(Excerpt) Read more at online.wsj.com ...
Timothy Sullivan, CEO of Bucyrus International Inc...your next. The People Revolutionary Committee demands your company!
What’s that old saying?
“A government big enough to give you everything you want, is big enough to take it all away.”
...or something like that.
In other words, Mr. Sullivan has no problem with Public ownership and regulation of otherwise-Private industry. More succinctly: Mr. Sullivan supports Socialism.
The stakeholder theory of business sounds appealing, from a business man's or business woman's perspective, at first...until it's used to justify Soviet-style Communism and all sorts of other horrific evils.
“Are we moving toward a system similar to the French government’s ownership and control of corporations in France?” he asked.”
Not really. And why shouldn’t a major investor/stockholder have a say in such things?
“”If I was a banker that took TARP money, I’d find a way to give it back as soon as possible.””
The bank executives are perfectly safe. They own Obama, not the other way around.
Timmy Sullivan had better lay low and keep his yap shut.....
.....they make evil mining machinery that contributes to global warming (accoding to the environmental fruitcakes.)
Obama would just as soon put Bucyrus out of business.
What does "sympathy" have to do with the Constitution's limits on government overreach????
You’d better watch it Mr. Vine - off-road recreational vehicles will soon be verboten in Obamaland. They will be coming for you soon.
I remember the Bucyrus plant in Erie, PA. I remember the Hammermill plant in Erie, PA. I remember the American Sterilzer ( Steris) plant in Erie PA. Soon, I’ll remember the GE locomotive plant in Erie, PA. Seig Heil. More to come and the sheep will allow it. We (they) deserve what they voted for. Fascism to the enth degree. HR 875 and HR 425 are only the start. What the hell has happened to this country this quick? I’m not baffled, I’m ready.
when a ‘labour leader’ is in favor of something, my radar immediately goes into tracking mode....
Wasn’t the term “stakeholder” invented on a college campus?
First they hook you, then they reel you in.
I think so.
GOVERNMENT IS THE PROBLEM!!!!!! NEVER the solution!
I remember all the plants 60 miles south of you in Oil City, PA when I was growing up. I remember the Pennzoil, Quaker State and Wolfs Head national headquarters now long gone. I remember Glass bottle and steel barrel manufacturing plants, now gone. I remember lumber yards, U.S. Steel and Penn Central RR, all gone. Everything is gone! I think McDonalds is still there though.
I think the paradigm guy came up with that one too.
Naturally I could be mistaken about this but I believe the proper way for a shareholder to effect this sort of thing is through the Board, who hires and fires the CEO. Should the government wish to act as a shareholder it ought to have done this through the Board. I solicit correction from FReepers who know more about this than I.
"Honey, it is what you used to see in big letters on the back of heavy construction equipment. Haven't seen it for decades, though."
"Oh, you mean Komat'su."
"Yeah, I think that's the translation."
See the gummit made it better for you by running out all those Dirty jobs! Now you can thank Black Hugochavez Oblack for running out the remainders.
Pray for America, Our Troops and obama’s Failure
“Wagoner’s Firing Is a Sideshow” [Ramesh Ponnuru]
Senator Corker’s take:
The administration is pursuing much of what we pushed for in December, but the delay of several months has increased the severity and sent billions of taxpayer dollars down the drain. Now any investment is likely unrecoverable . . . .
It’s been a long time since Washington has seen the kind of kowtowing that’s about to occur among members of Congress trying to curry favor with the administration to keep plants in their states open, and it will be interesting to see if the administration makes these decisions based on a red state and blue state strategy or based on efficiency and capable, skilled workers at each plant. If they use the latter, our GM plant in Spring Hill, Tennessee should do very well.
This is a major power grab by the White House on the heels of another power grab from Secretary Geithner who asked last week for the freedom to decide on his own which companies are ‘systemically’ important to our country and worthy of taxpayer investment and which are not. . . .
Not even Presidents Roosevelt, Wilson, or Carter crossed this particular Rubicon.
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