OK, we have another bubbling scandal. According to a Wall Street Journal article, executive search firm Spencer Stuart, is getting all of the government’s business.
The Journal reports they are the go to search firm when the feds need someone to fill a board seat or be the CEO of their growing portfolio of companies. Government companies that have had positions filled by Spencer Stuart include, GM, AIG, Fannie, Freddie, GMAC, Citigroup and Chrysler.
So is there a Goldman like lock on the government’s search business? Well consider that Spencer Stuart recruited Tim Geithner to be head of the New York Fed! And, when the interim chairman of GM, Kent Kresa, said he planned to use his personal network to fill board seats, Treasury officials “strongly” — the WSJ’s term — suggested he use Spencer Stuart!
There you go. It’s as obvious as the nose on your face that we have head hunter capture here.