For 2019, GM will not host shareholders in person. Instead, the automaker will switch to a virtual format, following other companies such as Ford.
Automotive News (subscription required) reported Monday on the automaker’s decision, which GM said is meant to “enhance attendance.” In the past five years, GM said the average number of shareholders present on its in-person meetings was around 35. The virtual format is meant to make it more convenient for more shareholders to hear executives and what they have to say.
AN reported Ford saw attendance rise when it shifted to a virtual format in 2017 when 147 shareholders tuned into the virtual format over 59 in-person shareholders in 2016. However, the move comes with a small serving of backlash.
Critics believe virtual formats make it easier for companies to hide behind the screen and it doesn’t give shareholders the chance to voice concerns as well versus an in-person format. Executives are able to avoid arguments and confrontations, and in some cases, protests altogether. Like so many things, there are pros and cons to the situation.
The first virtual shareholders meeting will take place on June 4 via a video webcast. To qualify for the login to the webcast, an individual must have been a shareholder as of April 8. Shareholders can follow the link here for more information.
Source: Automotive News (subscription required)