Shares of General Motors are climbing in Monday trading after the automaker announced a new $5 billion share buyback plan. Through the move, the company avoids a proxy fight with investor Harry Wilson, who will no longer pursue his bid to join its board of directors. Wilson had accused GM of hoarding cash to the detriment of shareholders. The automaker says it will now aim to keep $20 billion in cash on an investment-grade balance sheet and return free cash flow beyond that to shareholders. TheStreet contributor Doron Levin says now there’s added pressure on GM’s management to perform. Being as the stock has not done much since 2010, Levin says investors are looking for improvement and will likely rattle the cage once again if things don’t improve.
Subscribe to TheStreetTV on YouTube:
For more content from TheStreet visit:
Check out all our videos:
Follow TheStreet on Twitter:
Like TheStreet on Facebook:
Follow TheStreet on LinkedIn:
Follow TheStreet on Google+:
source
