Senators urge Barra to
fire GM’s corporate counsel.
The AP (7/18, Gordon, Durbin) reports that as a
Senate subcommittee “delved deeper into GM’s mishandling of the recall of small
cars with defective ignition switches,” lawmakers demanded that CEO Mary Barra
fire the company’s “chief lawyer and open its compensation plan to more
potential victims.” Subcommittee Chair Claire McCaskill praised Barra, “saying
she ‘has stepped up, and with courage and conviction has confronted the problem
head on and the corporate culture that caused it,’” but also put her “on the
spot, telling the CEO that she should have fired GM’s corporate counsel,
Michael Millikin, based on the conclusions of an internal report by outside
attorney Anton Valukas. Millikin sat next to Barra as she defended him as a man
of ‘tremendously high integrity.’”
The New York Times (7/18, Vlasic, Kessler,
Subscription Publication, 9.79M) reports that Millikin “came under withering
attack from senators” during the hearing, adding that several senators “also
focused on how forthright G.M. was in its disclosures with the National Highway
Traffic Safety Administration.” The Wall Street Journal (7/18, Bennett, Hughes,
Subscription Publication, 5.89M) reports that Barra stood by Millikin amid
questions from senators about how she intends to change GM’s corporate culture
without firing him.
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