Mr. Sergio Rocha, President & CEO of GM Korea will accede to unprecedented ‘Chairman’ within GM Global organization as of January next year.
On October 20th, GM Korea released that James Kim, COO, will take up President & CEO while Sergio Rocha will be Chairman of GM Korea as of January 1, 2016.
Accordingly James Kim will be responsible for all the management of the company immediately, and so will be reported from all division chiefs.
The promotion of James Kim is not actually a surprise because when he was nominated as COO last June he was to take over the Presidency and CEO of the company.
But President Rocha’s promotion to Chairman is totally beyond expectation.
GM Korea’s explanation is that the Chairmanship is purely representing the comprehensive roles of Mr. Rocha as chairman of board of directors, and the supervisor of GM Uzbekistan business, while being reported by James Kim on the overall management matters.
So to speak, Mr. Rocha will oversee all the businesses on top of James Kim, which however might mean that the capacity of James Kim is not fully confirmative.
Mr. Rocha’s tenure as President & CEO of GM Korea comes to an end next February, and so he will come to serve a total eight years at GM Korea if he extends his term for a four-year Chairmanship in January 2016.
His new title ‘Chairman’ itself would be arguable. Since Dan Akerson’s retirement at the end of 2013, no executives at GM took up Chairmanship, let alone Mary Barra.
Therefore, Sergio Rocha seems to have gotten the highest position at GM group when he assumes the Chairmanship.
GM Korea however makes it clear that Mr. Rocha’s Chairmanship is only for using within GM Korea, but Stefan Jacoby, President for GM Overseas Division, calls Mr. Rocha as Chairman, and so such an explanation is not so much persuasive.
When President Rocha takes office as a standing chairman of GM Korea, the management system will be a more multi-layered one, and hence the efficiency would be rather deteriorated and the burden of deserts for senior executives may be escalating.