More Changes In Store For G.M.
Detroit, MI – More changes are in store for GM investors, executives and retirees.
The financially troubled automaker is cutting its dividend by half, chopping the salary for senior management and reducing health benefits for retired salaried workers.
GM Chairman and CEO Rick Wagoner says the steps are necessary to return the number one automaker to profitability.
His own salary will be reduced by 50%. Other top executives will see cuts of between 10% and 30%. GM also says its looking at ways to "restructure" pension benefits of salaried workers.
For investors, the quarterly dividend will be cut by 25 cents a share, reduced from 50 cents, where it had been since early 1997.
The news comes Tuesday, a day after an aide to billionaire investor Kirk Kerkorian was elected to the GM board.
Jerome York, whose tenure begins Tuesday, is a 30 year veteran of the auto industry who's held positions at GM, Ford and Chrysler.