GM Shareholders Vote Down Greenlight proposal
June 8, 2017—General Motors shareholders have rejected Greenlight Capital's plan to split the company's stock, and rejected the hedge fund's nominations to GM's board, according to CNBC.
The automaker said Tuesday a preliminary vote count provided by its proxy solicitor at its annual shareholder meeting indicated the results.
The results indicated all of GM's board nominations were elected, with between 84 and 99 percent of votes cast. Greenlight's proposal was rejected with more than 91 percent of votes against it, or 96 percent of votes if Greenlight's votes were excluded, according to the release.
"On behalf of our Board and management, we appreciate the significant support of our shareholders as we continue to transform GM and increase the value of their investment," said Mary T. Barra, chairman and CEO, in a news release. "We value the perspectives of our shareholders and will continue to actively engage with them—and relevant external experts—as we enhance our core business, deploy capital to higher-return opportunities, and advance our leadership in the future of personal mobility."
Greenlight Capital founder and president David Einhorn had proposed splitting General Motors shares into two classes: one class would receive dividends, and the other would participate in growth and earnings.
"We decided to bring a creative idea to GM's shareholders and nominate directors to help fix GM's inefficient capital structure and unlock significant value for all shareholders," said Einhorn said in a statement sent to CNBC. "We are disappointed that shareholders have elected to maintain the status quo. We congratulate GM's management on their win today."