Iacocca quits as a director of Chrysler

September 03, 1993|By New York Times News Service

DETROIT -- Declaring, "It's time to let the younger people do the driving," Lee A. Iacocca, former chairman of the Chrysler Corp., resigned yesterday as a director and chairman of the executive committee.

Mr. Iacocca's unexpected departure comes less than nine months into what was to have been a two-year board term, though he will remain on call as a consultant through the end of 1994 at an annual salary of $500,000 and perquisites like access to a company jet.

In a statement, Mr. Iacocca took pains to praise his successor as chairman, Robert J. Eaton, suggesting that he was not leaving because of any dissension among top executives. He recruited Mr. Eaton from the General Motors Corp. in early 1992 after passing over Robert A. Lutz, the president, who many believed would be chairman.

For investors, Mr. Iacocca's departure may be a sign that he will soon sell more of his 2.9 million common shares, which he accumulated as compensation during his 14-year career at the No. 3 automaker.

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