Roberts shifts from GM to dotcom.Higher salaries, stock options have old economy execs surfing the tech wave
At 61, Roy S. Roberts was in the high-ranking position he had been preparing for most of his life. The vice president of General Motors' North American North American
named after North America.
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North American cattle tick
see boophilusannulatus. Vehicle Sales, Service and Marketing Group had dedicated nearly 20 years of his life to the American automaker, rising from his work in a manufacturing plant in upstate New York Upstate New York is the region of New York State north of the core of the New York metropolitan area. It has a population of 7,121,911 out of New York State's total 18,976,457. Were it an independent state, it would be ranked 13th by population. to a seat in the executive boardroom at GM's headquarters in Motor City, U.S.A.
Now, Roberts will be in the driver's seat driv·er's seat
A position of control or authority. of a Web-based company that may very well revolutionize the way African American African American Multiculture A person having origins in any of the black racial groups of Africa. See Race. companies gain multi-million dollar corporate contracts and increase their cash flow and revenues.
Roberts presided over the successful merger of the Pontiac and GMC GMC
See: Guaranteed Mortgage Certificate divisions in 1996, and helped conduct a major reorganization of the company in 1999. That year was also a record setter for GM sales. Roberts' achievements earned him inclusion among BLACK ENTERPRISE'S ranking of the top 50 blacks in corporate America. (See "The Top 50 Blacks in Corporate America," February 2000.)
When he announced his retirement in January, Roberts hinted he was looking to begin his own venture, but no details were provided. "GM's on a roll," he said, "but I'm thrilled to be going out on my own in an exciting new venture."
His retirement was seen as a loss for the business world. He was the most powerful African American in the global automobile industry automobile industry, the business of producing and selling self-powered vehicles, including passenger cars, trucks, farm equipment, and other commercial vehicles. , and one of few blacks to gain access to the executive boardroom, and many wondered where the next Roberts would come from. "Saddened and dismayed" were the words used by Glenda Gill, deputy director of the Rainbow/PUSH Coalition's Detroit office. Gill said she hoped the positive relationship created between GM and the group would "continue uninterrupted, especially as it relates to diversity."
But enjoying retirement on the golf links wasn't what Roberts had in mind. His new venture is MXchange.com, an Internet exchange See IXP and NAP. that will link minority businesses with large corporations. He is part of an increasing trend, as executives leave their comfortable corporate lifestyles for the potential big money of the Internet. As the Nasdaq continues to outperform traditional economic indices, dotcoms are garnering more venture capital and greater visibility. They're no longer the uncertain terrain dominated by Gen-Xers.
VentureOne, a San Francisco-based research group, revealed in a survey that venture capital raised by private companies was up nearly 155% from 1998 to $36.5 billion in 1999. Venture-backed Internet companies raised $25 billion, over four times the 1998 mark, the study found. Ironically, the Internet company that raised the greatest amount was an online automobile retailer--Cars-Direct.com--with $280 million.
Dotcoms have also become wiser, investing their capital windfalls in Old Economy talent. Executive headhunters regularly do their shopping at General Electric, AT&T, IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) and other companies. Studies over the last five years suggest the median salaries and bonuses of e-CEOs and other e-execs are closely approaching, if not overtaking, those of the Fortune 500 bosses.
A study by USA Today USA Today
National U.S. daily general-interest newspaper, the first of its kind. Launched in 1982 by Allen Neuharth, head of the Gannett newspaper chain, it reached a circulation of one million within a year and surpassed two million in the 1990s. shows that seven out of 1999's 10 most highly paid CEOs run technology ventures. It's the lure of attractive compensation packages--including stock options based on future (often astronomical) profit potential--that's sparked the migration of formerly non-Internet chiefs. If the big companies don't respond, they could start to look like executive incubators.
While Roberts didn't jump for the money but rather the opportunity to run his own enterprise, his future is promising. Even more remarkable are the connections he can make from relationships formed at GM. With the Web at their fingertips "Fingertips" is a 1963 number-one hit single recorded live by "Little" Stevie Wonder for Motown's Tamla label. Wonder's first hit single, "Fingertips" was the first live, non-studio recording to reach number-one on the Billboard Pop Singles chart in the United States. , e-CEOs like Roberts may be more influential than previously thought.
The move fits Roberts' philosophy. He told no BE: "I'm not the kind of manager who maintains the status quo [Latin, The existing state of things at any given date.] Status quo ante bellum means the state of things before the war. The status quo to be preserved by a preliminary injunction is the last actual, peaceable, uncontested status which preceded the pending controversy. . Everyday I come to work and think seriously about how I can make things better. If I can't, what's the point?"