Home Economy Einhorn Call for GM Changes Rejected by Shareholder Advisers

Einhorn Call for GM Changes Rejected by Shareholder Advisers

3 min read
13
0
177


                Einhorn Call for GM Changes Rejected by Shareholder Advisers

Two shareholder advisory firms have recommended support for current General Motors Co. board members and against creating a dual share class, proposals advanced by activist investor David Einhorn to boost the automaker’s stock.

“The dissident has not made a compelling case that change at the board level focusing on the implementation of its proposal is warranted,” Institutional Shareholder Services wrote in a report released Friday. “The negative outcomes associated with the proposed dual class share structure combined with the lack of visibility regarding value creation for shareholders drive our recommendation against the dual class proposal.”

Glass Lewis & Co. previously recommended support for the GM slate.

Einhorn’s Greenlight Capital LLC, which owned 3.6 percent of GM’s shares as of March 31, seeks to replace three of 11 board members and split the into two classes — one tracking capital appreciation, the other, dividends — to unlock value. The GM shareholder meeting is scheduled for June 6.

ISS concluded that GM, under Chief Executive Officer Mary Barra, already has closed its performance gap relative to peers. While the dual-share-class proposal is intriguing, “it risks the addition of complexity to a board that is facing concrete and pressing concerns from technological and competitive perspectives, the value creation is uncertain, and there has been no market endorsement,” according to the ISS report.

Einhorn didn’t immediately reply to an email seeking comment.

“Ultimately, we are not convinced that a more aggressive approach is warranted or in the best interests of shareholders given the cyclical nature of the industry and current headwinds and disruption facing the industry,” according to an excerpt of the Glass Lewis report posted by GM.

Shares of GM rose 1.4 percent Friday to $33.07, and are down 5.1 percent this year.

Load More Related Articles
Load More By Shaun Molligan
Load More In Economy

13 Comments

  1. employee legal advice

    June 5, 2017 at 8:31 am

    Right here is the right blog for anybody who would like to find out about this topic. You know a whole lot its almost hard to argue with you (not that I actually would want to…HaHa). You definitely put a fresh spin on a subject that has been written about for a long time. Excellent stuff, just wonderful!

    Reply

  2. help for small businesses

    June 5, 2017 at 8:33 am

    Everyone loves what you guys are usually up too. This kind of clever work and coverage! Keep up the wonderful works guys I’ve added you guys to my blogroll.

    Reply

  3. dep of education

    June 6, 2017 at 10:35 pm

    This is really interesting, You are a very skilled blogger. I have joined your feed and look forward to seeking more of your fantastic post. Also, I’ve shared your site in my social networks!

    Reply

  4. best digital camera

    June 6, 2017 at 11:04 pm

    I used to be able to find good information from your blog articles.

    Reply

  5. financial services

    June 7, 2017 at 5:07 pm

    We’re a group of volunteers and starting a new scheme in our community. Your site offered us with valuable information to work on. You’ve done an impressive job and our whole community will be grateful to you.

    Reply

  6. healthy

    June 7, 2017 at 9:46 pm

    I always spent my half an hour to read this weblog’s content daily along with a cup of coffee.

    Reply

  7. it advice for small businesses

    June 8, 2017 at 9:08 am

    Incredible story there. What occurred after? Take care!

    Reply

  8. investment advisor

    June 8, 2017 at 11:35 am

    I have to thank you for the efforts you have put in penning this website. I am hoping to see the same high-grade blog posts from you in the future as well. In fact, your creative writing abilities has encouraged me to get my own site now 😉

    Reply

  9. skin cancer

    June 8, 2017 at 6:21 pm

    Wow, wonderful blog layout! How long have you been blogging for? you made blogging look easy. The overall look of your site is wonderful, as well as the content!

    Reply

  10. discount electronics

    June 9, 2017 at 6:29 am

    continuously i used to read smaller posts which as well clear their motive, and that is also happening with this paragraph which I am reading now.

    Reply

  11. cheap cell phones

    June 9, 2017 at 9:52 am

    Good day! Do you use Twitter? I’d like to follow you if that would be okay. I’m undoubtedly enjoying your blog and look forward to new updates.

    Reply

  12. family search

    June 9, 2017 at 2:10 pm

    This text is invaluable. When can I find out more?|

    Reply

  13. sleep better

    June 10, 2017 at 5:03 am

    I was suggested this blog through my cousin. I’m no longer positive whether this publish is written by means of him as no one else know such distinctive about my difficulty. You’re incredible! Thank you!

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

Check Also

Household Debt Hits Record While Credit Card Delinquencies Inch Higher

US household debt continued its steady rise in the third quarter, breaking the record set …