General Motors staff has IPO dreams
After a traumatic bankruptcy and series of federal bailouts, the company still owes billions of dollars to the U.S. and Canadian governments. It lost $1.2 billion in its latest quarter, and only sees a slight uptick in auto sales next year.
The days of banner-year profits and bonuses must seem far off for GM’s executives and finance staff. GM’s Chairman has already said pay caps imposed on companies by the U.S. government’s pay czar make it tough to hire executives.
While other job opportunities are obviously limited in Detroit, and they may have nowhere better to go in the industry, the company’s plans for a 2010 IPO has emerged as a key staff retention tool, one of its top executives said on Tuesday.
In comments to the Financial Executives International Current Financial Reporting Issues conference in New York, Nick Cyprus, vice president, controller and chief accounting officer at GM said:
“I have a tool that my peers don’t have. We have an IPO coming up in the next half-a-year to a year or whatever it takes. That’s a great tool, too. Getting the experience of taking General Motors public again is not only a great tool from an experience perspective and resume builder, but it’s also a great experience in that if things work out well there are potential wealth opportunities. In essence, the taxpayers get paid back and people who have delivered get an opportunity to make some money.”
GM is planning to arrange a revolving line of credit in preparation for an eventual IPO, which would probably be one of the biggest in 2010 if it is able to keep up with its time schedule.
If you were a GM employee, or an investor for that matter, how excited would you be about this IPO?