Sources say that General Motors Co. board member Kent Kresa is likely to retire as a director in July. Kresa, who served as interim chairman during GM's bankruptcy, joined the board in 2003. Last March, he turned 72 and will not stand for re-election.
These sources said that last April, GM appointed a 13th director, Cynthia Telles, an associate clinical professor at the University of California at Los Angeles. She is set to replace Kresa as soon as he retires.
Kresa's retirement leaves four directors from the old General Motors Corp. and eight new ones who joined since the new GM emerged from bankruptcy.
Charles Elson, director of the Charles L. Weinberg Center for Corporate Governance at the University of Delaware, said that this ratio could sway potential investors into believing that GM's board has a fresh perspective as it prepares for an initial stock sale.
Elson added that having "new blood" makes sense. Meanwhile, another director Kathryn Marinello submitted her resignation from GM's board after she left her last job as chairman and CEO of human resources firm Ceridian Corp. last January.
According to GM's corporate governance guidelines, when a director's job changes "from the position he or she held when originally invited to join the board," the director should file a resignation letter. [via autonews]