Buyers Not Buying GM Shake-Up, Poll Says

NEW YORK ( TheStreet) -- While the recent shake-up of senior management at General Motors has certainly required the printing of a few new business cards, public opinion is divided on whether the management shuffle will be enough.

In our poll last week, 43.8% of TheStreet's readers said they endorsed the changes, so much so that they would consider buying a GM car. Still, 56.2% of readers felt that shake-up was not enough to turn around the troubled car company.

GM's Ed Whitacre currently holds the Chairman and CEO titles while the company searches for a new President and CEO after the recent resignation of Fritz Henderson. However, TheStreet's readers weren't overwhelmingly impressed with his efforts to overhaul the senior ranks.

The market seems to be clamoring for an even more drastic change in senior management. The next question is who will the company turn to -- and who would be willing to step in.

The issue of compensation will also be a key concern for any potential recruits -- as well as executives deciding whether to stick around. Although it has been known for a while that GM's top 25 most senior executives have been subject to pay restrictions, the Treasury Department recently announced that pay restrictions will also extend to the next 75 highest-paid executives.

The pay czar, Kenneth Feinberg, is further extending salary restrictions by limiting these executives to salaries of $500,000 and putting an end to bonuses unrelated to performance. Additional restrictions include withholding 50% of compensation for at least three years and limiting cash to 45% of annual salary.

GM could follow in the footsteps of other TARP recipients -- such as Bank of America ( BAC), which recently repaid the government funds, or Citigroup ( C), which is expected to repay the funds shortly. The move allowed Bank of America's next 75 highest-paid executives to avoid the recently announced pay restrictions.

-- Reported by Andrea Tse in New York >>See our new stock quote page.

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