General Motors announced today that its Chief Financial Officer, Chris Liddell, will be leaving the company on April 1st. GM shares hit a new low of $30.95 on the news. Mr. Liddell joined GM in January of 2010. Having served for over a year, Liddell has exceeded the average stay of top executives at GM. GM has gone through three CEOs since they emerged from bankruptcy in June of 2009.
GM’s VP, finance and treasurer, Dan Ammann, will be replacing Liddell. Prior to joining GM, Ammann was managing director and head of Industrials Investment Banking for Morgan Stanley.
It is not clear why Liddell is leaving, but the instability at top management positions at GM should be viewed as a sign that the company may have underlying problems and has not settled in to a successful long-term business plan. Investors and potential investors in GM may be wise to proceed with caution.