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.”