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Netheads on Whitacre as GM CEO: #attfail

Ed Whitacre may have done well during his tenure as head of SBC / AT&T if you compare the company's performance to its industry peers, but that sets a very low standard. Whitacre earned tens of millions of dollars per year.

However controversial his salary, his retirement was even worse PR for AT&T. Not known for anti-capitalist tendencies, a blogger at The Wall Street Journal criticized his country club retirement. The reported $158 million package included country club fees ($25,000) and automobile benefits ($24,000 a year). Perhaps Whitacre knows about owning cars but not about buying them.

"AT&T argues that the pay is deserved because the company has "outperformed its peers in delivering value to stockholders" during Whitacre's tenure. But how about a more basic measure of performance, like how an investment in the company has stacked up against the broader stock market since Whitacre, a serial acquirer, took the top job at the company, then known as SBC Communications, in 1990? By that scorecard the conglomerate that he now runs -- which has morphed into the new AT&T -- is valued at just under 2.5 times its worth back then, while the Standard & Poor's 500 stock index has risen more than four fold," argued Dana Cimilluca in his Wall Street Journal blog.

InternetNews.com combed twitter and contacted some notaries, asking them to weigh in on the selection.

Netheads

"They're not gonna drive my roads for free," wrote David Isenberg, who as a Bell Labs employee was one of the earliest critics of the AT&T network and who is now running the It's The Internet Stupid campaign. He was referring to Whitacre's threat to block Google from AT&T's networks.

"Seriously, if you want to build a 'smaller, leaner GM' why put in
charge the man responsible for rebuilding Ma Bell? #attfail," wrote Dana Spiegel, Executive Director of community network builder NYCwireless to InternetNews.com.

"Seems that a man who comes from an industry that put the NO into the word 'innovation' has a chance to set his mark once again, this time in Detroit. This is not exactly the kind of change some investors would have expected. But it is nice to know that in 2009 a telecom dinosaur has found a new home," wrote Jeff Pulver to InternetNews.com.

"Whitacre is an ideal choice for GM. Under his leadership ATT has been able to get regulators to regulate his competition out of business. This job skill should serve him well at GM. For a telephone company, or a badly managed car manufacturer, the ability to lobby is a lot more important than the ability to innovate or lead," Jim Pickrell, who sued AT&T in the famous Brand X case, wrote in an e-mail to InternetNews.com.

"This is the same GM that talked regulators here in Los Angeles into dismantling the Red Car mass transit system so everyone would be forced to go out and buy a car. Good thinking. I imagine Whitacre will be looking for a way to get regulators to rid of the Toyota Prius and other evil products produced by GM's competitors," Pickrell added.

"My first reaction when I saw this story was that it was a joke/hoax. Now that I know it's not, I'm just speechless. I feel like I'm watching an episode of the 'Twilight Zone'," said Dewayne Hendricks.

But perhaps Whitacre deserves the benefit of the doubt.

"As AT&T CEO he effectively consolidated the regional telephone companies into AT&T. His success at GM will be determined by whether GM can create a new line of affordable, fuel-efficient vehicles," wrote wireless expert Jack Unger to InternetNews.com.

Did the Obama administration need to give the job to a Republican?

"On a really speculative note, there's the fact that, judging from a scan of his political contributions, Whitacre looks like a good Texas Republican. At a time when the auto bailouts are getting steadily more politicized, with some on the right calling for a GM boycott and with charges of partisanship flying around dealer closings, it can't hurt to have Whitacre saying that this is a worthy -- and fair -- project. What's more, as a leader in a regulated industry, Whitacre was an effective Washington lobbyist,"wrote Ken Klee of The Deal.

Tweets

On Twitter, several were eager to take credit for the appointment. A former student of Whitacre's at Texas Lutheran University tweeted, "Ed Whitacre is going to be the new chairman for GM, putting @txlutheran on the map! How many former professors of your college became CEO's?"

The Boy Scouts of America were also pleased, noting, "Wow! Former BSA president, Edward E. Whitacre, Jr., will head the new G.M. when it emerges from bankruptcy. Talk about leadership!"

Others were not so pleased.

"Does this make U feel confident?," asked Diane Hessan, CEO of CommuniSpace, a company that helps companies interact with customers -- a skill that AT&T is not famous for.

"Ed Whitacre. Right. Because customers loved SBC so much," wrote advertising consultant Michele Clarke.

But maybe handling DC is more important than enthusing customers.

"Ed 'my pipes' Whitacre to head GM. He knows nothing about cars, but he's a master at manipulating Washington and that's what counts," wrote network engineer Ben Teitelbaum.

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