Since EDS had its own stock, there was an inherent conflict of interest between the companies- an EDS employee working in Detroit at a GM plant was not primarily concerned about GM's performance, but about EDS performance, so they had a blank check to throw money at problems, bill GM, and watch their EDS stock go up. Finally, as Lee quotes Perot - ``GM doesn't honor its contracts'' - Smith had said he would not interfere with Perot, but the relationship fractured from the start, with conflicts over promised compensation to EDS executives being rejected by Smith, who also sent auditors to EDS to irritate Perot.
Perot
Smith