March 10, 2015—General Motors Co. announced Monday that it is beginning a $5 billion buyback plan for its stock in order to avoid controversy and a proxy war from investors, and hopefully allocate more funds to its investors in the long run, according to a report from Reuters.
Part of the agreement for the buyback includes terms that Harry Wilson, a former member of Barack Obama’s administration’s automotive task force, would have to cease all efforts to gain a seat on GM’s board of directors.
GM shares were up 2.4 percent at $37.42 to open the week. GM also plans to boost its quarterly dividend to 36 cents per share from 30 cents.
In all, the actions are planned to yield about $10 billion to shareholders through 2016.
