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Article: There's No Shame In Blame; As their portfolio companies continue to struggle, private-equity firms don't waste any time in unloading execs at the top.(Private Equity)(General Motors Corp.)
- Article from:
- Investment Dealers' Digest
- Article date:
- May 8, 2009
- Author:
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Byline: Avram Davis
In late March, General MotorsCEO Rick Wagoner received the news that he was out of a job. Wagoner, who had joined the automaker out of Harvard Business School 28 years ago, was ousted shortly after Steven Rattner, the former Quadrangle Partners managing principal, took an advisory position with the Treasury Department.
To those familiar with private equity, Wagoner's fate was probably sealed the minute Rattner received the appointment.
While it's not the most glorious part of the private-equity job, PE firms have developed a hair trigger when it comes to eliminating underperforming management. As Fenway Partners managing ...