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GMAC CFO Bolts Two Weeks After TARP Testimony

This story is republished from CFOZone, where you’ll find news, analysis and professional networking tools for finance executives.

Private equity firm Providence Equity Partners announced on Tuesday that it had hired Robert S. Hull, GMAC Financial Services’ chief financial officer.

Hull will join the firm, which specializes in media, entertainment, communications and information companies, as its CFO in early April. He succeeds Raymond Mathieu, who will become a managing director focused on special projects for the firm.


The 46-year-old Hull was CFO at GMAC since 2007. He was a member of the beleaguered lender’s executive committee and served briefly on its board of directors.

Previously, he held a series of finance positions at Bank of America from 2001 to 2007, most recently as chief financial officer of the company’s global wealth and investment management business.

GMAC has received $17 billion in government bailout funds and hasn’t recorded a quarterly profit since the fourth quarter of 2008. Indeed, it has lost money in nine of the last 10 quarters and lost over $10 billion in 2009.

Hull was paid $4.9 million last year.

The departure comes just two weeks after Hull had to testify before a Congressional Oversight Panel regarding the U.S. government’s assistance to GMAC under the Troubled Asset Relief Program.

In a report regarding Hull’s departure, Standard & Poor’s laid out GMAC’s many troubles, which include “resolving strategic considerations for several business lines, most notably the mortgage operation; executing its plans to diversify beyond providing auto-finance products and services to GM and Chrysler dealers and retail customers; and coping with a still-fragile economy.”

Given all those challenges, the rating agency concluded, “it is not surprising to see turnover at all levels of the institution.”

Perhaps that lack of surprise is why GMAC, for its part, didn’t even bother putting out a press release over the departure, opting to make only a two-sentence filing with the SEC:

“GMAC Financial Services today announced that Chief Financial Officer Robert S. Hull has elected to depart the company at the end of March to pursue another career opportunity. The company will conduct an internal and external search for potential CFO candidates in the interim.”

Time Warner CFO Gives Shocking Assessment of the Print Ad Market

In case you haven’t been paying attention for the past, say, 5-10 years:

Time Warner Inc. (TWX) Chief Financial Officer John Martin said Thursday that the television advertising market is “really strong,” while the print advertising market is “okay–but not really robust.”


Not to worry though, there are no signs that things are getting worse.

Meanwhile, he said the company’s publishing arm, Time Inc.–which he called “the most secularly challenged part of our company”–faces difficult comparisons in the second half of this year, though he added that he didn’t see any slowdown ahead.

The magazine business was pummeled by the recent economic downturn at a time when it was already declining due to the rise of digital media.

Time Warner CFO: TV Ad Market `Really Strong,’ Print Less So [Dow Jones]

When Booking Bogus Revenue, Ideally Your CFO Is the Type to Not Give a Rat’s Ass

James Li and David Chow used to run a shop called Syntax-Brillian Company as the CEO and Chief Procurement Officer respectively. They sold high-def, LCD TVs under the Olevia brand in China. Problem was, they didn’t really sell TVs under the Olevia brand in China. According to the SEC:

[F]rom at least June 2006 through April 2008, Li and Chow engaged in a complex scheme to overstate Syntax’s financial results by publicly reporting significant sales of LCD televisions in China, when in fact the vast majority of these sales never occurred. Li and Chow initially concealed the scheme through the use of fake shipping and sales documents.

Of course, they couldn’t do it alone. They needed a CFO. A CFO who would backdate things when asked and ignore obvious signs of bogus revenue. That man was Wayne Pratt who, from the sounds of it, wasn’t too concerned about ANYTHING:

The SEC alleges that Wayne Pratt, Syntax’s Chief Financial Officer, ignored red flags of improper revenue recognition and participated in preparing backdated documentation that was provided to Syntax’s auditors to support fictitious fiscal 2006 year-end sales. Pratt also ignored indications of impaired assets, agency sales, and potential collectability issues.

So, budding criminals, get on the look out for a guy/gal who is accustomed to shrugging their shoulders and responding “Meh. Whatever.” to your demands. Should work out well for you.

Litigation Release [SEC]
Complaint [SEC]