Chrysler: Heidrick Has No Struggles with BusinessWeek

Apparently looking to become the Craigslist for the top-paid .01% of executive hires, BusinessWeek has hung out a nice promo in its current issue under this headline:

"Why Top Talent Is Jumping To Chrysler
Two big lures: A shot at being part of a historic turnaround, plus oodles of cash"

Historic? Oodles? Were does Jack Flack sign up?

Now Jack Flack enjoys a good game of "Guess the Unnamed Source," but only if it has some degree of challenge to it. In fact, sometimes the game is ruined way too early, as it is when Bradley J. Holden, a partner with headhunter Heidrick's & Struggles, bravely comments on the record:

"Private equity firms can offer huge financial upside and the intellectual challenge of turning a company around. What's not to like?"

After that, readers are forced to strain their imaginations to guess the source when reading the following seven consecutive sentences, (with Jack Flack sprinkling italics for easy identification of the various euphemisms for "unnamed source").

"Cerberus had been scouting talent even before it acquired Chrysler in May. In March, while it was bidding for the carmaker, its managers were talking to Nardelli, and later had headhunters stocking a pool of hot prospects.

"Cerberus offers big financial lures. One person with knowledge of how it structured Chrysler's finances estimates that some 5% of Chrysler equity is set aside for the top 75 managers. New managers get a piece of that.

"Sources close to Chrysler say Press' package is worth at least $50 million and could be worth much more later. It includes a very large signing bonus to cover his Toyota retirement package and stock options granted beginning in 2002.

Meyer declined to comment on her pay, but a source familiar with the hire says she also gets performance bonuses and equity."

Oh, and then comes the obligatory capper:

"Chrysler declined to comment on pay packages."

Was there anything left to say?

Surely, Heidrick's has launched a huge internal investigation to hunt down the leak, checking all the cleaning staff's cell phone logs for outgoing calls to reporter David Welch. What possible motivation could they have for pushing such a story?

"Nardelli's star search isn't over. Chrysler is on the hunt for a new chief financial officer, BusinessWeek has learned. Sources close to Cerberus who are familiar with its hiring plans say also that Chrysler is scouting a top executive to focus on improving quality and a chief engineer to beef up its product development staff. Murtagh heads growth plans for China and other Asian markets, and Chrysler may add talent to build its presence in Europe."

Now trading exclusive inside poop for a puff piece is hardly a new invention. But after reading the story five times, two questions baffle Jack Flack.

1. Given that the story, like rival's reports before it, credits much of the recruitment effort to Cerberus, is the famously hands-on CEO Bob Nardelli being assigned his team by Cerberus?

2. And even though BW loves Nardelli's Chrysler, how is such a puffer allowed to parade a mere 22 pages away from Jack Ewing's thoughtful, well-reported example of good business journalism?

To be fair, virtually every major headhunting firm makes good use strategic leaks, playing to reporters' desperate scoop-cravings to generate stories that either pump the firm or provide post-purchase reinforcement to clients. Just for sport, Jack Flack will call attention to new examples as they inevitably ooze to the surface. As always, tips to such activities are welcomed.

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