Industry News
GM shareholders motions rejected at AGM
6th June 2007
General Motors is making progress in its turnaround effort, chairman and chief executive Rick Wagoner told shareholders yesterday at its AGM, where all 10 shareholder proposals were rejected. Wagoner told shareholders the automaker is on track to reach its target of cutting costs by an additional $2.2 billion this year. In all, 10 shareholder-backed proposals were voted down, including a proposal by a group of shareholders at a convent that the company set goals to reduce greenhouse gas emissions and improve its fleet’s average fuel efficiency.
Other shareholder motions voted down including those to allow shareholders with 10% stake to call a special shareholders' meeting; to make 75% of future share options given to senior executives performance-based; and to require GM executives to repay bonuses if any earnings restatements showed they had not reached their performance goals.
Mr Wagoner also confirmed that GM was still talking to Proton about a partnership, although he said it was "more a possibility for us than a probability."
He said priorities for the current financial year included reaching an agreement – to end negotiations which have been slowly proceeding since late 2005 - with Delphi and the United Auto Workers union, whereby the former components subsidiary could emerge from bankruptcy under Chapter 11 protection. Speaking to reporters after the shareholders’ meeting, Wagoner said he was optimistic that a settlement with Delphi could happen sooner rather than later. "My sense is it's kind of coming together," he said. "The number of issues is narrowing."
A further priority is reducing GM’s own health care costs, which totalled "a staggering $4.8 billion" in 2006.
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