Remember how Harry Wilson wanted to get a seat on GM’s board of directors? That’s no longer the case, as Wilson has withdrawn his nomination to stand for election to GM’s Board of Directors at the company’s 2015 annual shareholders meeting, while also agreeing to withdraw his shareholder proposal.
The withdrawal of Wilson proposal is the result of GM’s new capital allocation framework that would see the automaker maintain an investment-grade balance sheet underpinned by a target cash balance of $20 billion, while returning all available free cash flow to shareholders. The change also authorizes GM to initiate a $5 billion share repurchase program.
“GM is moving ahead with its comprehensive capital allocation framework, and constructive dialogue with our shareholders has helped ensure that we are addressing these key initiatives with the appropriate level of clarity and transparency”, said GM CEO Mary Barra. “We will continue to be engaged with all of our shareholders and to be responsible stewards of our owners’ capital.”
Over the last month, Harry Wilson has made quite a lot of noise about getting a seat on the board of directors of the General Motors Company. The former Obama task force member represented four hedge funds and was looking for a seat on GM’s board of directors in an effort to prompt the automaker to repurchase $8 billion of its own stock.
“Today’s announcement by General Motors represents the culmination of a constructive dialogue between our investor group, senior management and the Board,” said Wilson. “As a result of this dialogue, we have arrived at a win-win outcome that includes a thoughtful approach to critical capital allocation issues and other important measures to increase long-term shareholder value. We thank Mary Barra, senior management and the Board for their engagement and focus on these important issues and for working toward a mutually successful outcome.”