In a report by Bloomberg, it was said that Dan Akerson's gift to General Motors Co was his turnaround strategy after the automaker was dealing with bankruptcy less than five years ago. The US government had to extend a bailout package for GM around that time. The former telecommunications executive who has no experience in the automative sector was credited for turning then-beleaguered GM into a profitable and independent enterprise.
Despite announcing earlier this year that it will be making modifications to Akerson's pay package for his retirement within the next three years, his abrupt decision to leave the US automaker was a surprise in the industry, Bloomberg said. The Detroit-based company however, provided a more logical decision to explain Akerson's immediate exit today - Akerson's wife of over 40 years was said to have been diagnosed with advanced cancer.
On a conference call with reporters yesterday, Akerson said, "This personal situation kind of overtook us, overtook me. I need to spend all of my time and energy in fighting this disease with my wife." Akerson previously mulled over retiring in the last six month of 2014.
Bloomberg noted that Akerson had been mentioning his wife Karin often in interviews.
Before GM went public three years ago, Akerson took the chief executive job and helped the fragile automaker in its last few years under the ownership of the US government. GM shares are now trading to almost a record high, said the report. Product-development chief Mary Barra will be the first woman chief executive of the company after she succeeded Akerson.
In a meeting with employees yesterday that was also posted on the Web, Akerson told them, "I always knew I'd be viewed somewhat as a transition CEO. We had to right the ship, get it under way, not take it across the ocean."
Morgan Stanley industry analyst Adam Jonas had said in an interview in October, "Being CEO of General Motors is arguably the toughest auto job in the world just given the size, the complexity. Akerson has done a fine job of righting the ship."
Akerson was also credited for spurring investor optimism in the company, and counts Warren Buffett's Berkshire Hathaway Inc., State Street Corp. and J. Kyle Bass's Hayman Capital Management LP as among its high-profile investors, Bloomberg said. The team of Akerson and Barra brought out 18 new and updated vehicles and 14 next year in the US, the report said.
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