General Motors considering cutting dividends this year

General Motors considering cutting dividends this year

World’s largest automobile manufacturer General Motors has said that they are considering cutting its dividend for the first time in almost 13 years. They are also considering reviewing their bids for a majority stake in its finance arm.

The board members at the company are also thinking of taking pay cuts as the company is facing increasing pressure from the billionaire investor Kirk Kerkorian to cut on company expenditure. Kirk happens to be the single largest individual stockholder in the company.

He had last month recommended to the board of the company to halve its annual $1.1 billion dividend in order to save some outflow of cash and help the company get back to profitability. GM and Kerkorian are also talking about getting Jerome York, an aide to Kerkorian on board in the company. However, they have till now failed to settle on a common agenda.

Kirk currently owns around 9.9 percent shares in the company and could increase his stake even further if the company meets his demands for turning the company around.