
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: FRIDAY, September 3, 1993                   TAG: 9309030158
SECTION: BUSINESS                    PAGE: A-13   EDITION: METRO 
SOURCE: Associated Press
DATELINE: DETROIT                                LENGTH: Short

IACOCCA QUITS BOARD AT CHRYSLER

Lee Iacocca, who led Chrysler Corp.'s early 1980s comeback from the edge of bankruptcy, quit the company's board of directors Thursday in a move that symbolized a changing of the guard at the nation's No. 3 automaker.

The move surprised some, because Iacocca had fought to be chairman of the board's executive committee as a condition of his retirement as chairman, but there was no indication the departure was forced.

In a statement, Iacocca said, "Chrysler is in good hands now and has an outstanding future."

Iacocca, 68, will continue as a consultant earning $500,000 a year through 1994 in exchange for devoting up to 50 percent of his time to Chrysler. He is no longer starring in Chrysler's ads.

Even though he sold 1.2 million shares of Chrysler stock last month for $56 million, Iacocca still owns 1.68 million shares and has options to purchase another 3 million.

Ready access to his remaining Chrysler stock may have influenced Iacocca's decision to sever ties with the board.

The government heavily regulates the buying and selling of stock by corporate officials because of their inside knowledge of the company's business.

"I'm sure a part of it is that he could take control of his financial holdings," said Chrysler spokesman Steve Harris. "To this point, he has been treated like other officers of the corporation."

The board decided not to fill Iacocca's seat, reducing its ranks to 13 members.

by CNB