General Motors shareholders to decide Tuesday on Greenlight stock plan

Greenlight Capital’s strategy to split up General Motors’ stock, along with its obstacle to the company’s board of directors, will decide on Tuesday, as the automaker’s shareholders cast their votes on the hedge fund’s propositions.

Greenlight’s proxy contest comes during a significant overhaul at GM as CEO Mary Barra looks to jolt the automaker’s lagging stock rate and sales by cutting expenses and refocusing on the most profitable markets.

In the recent sign of the challenges facing major vehicle makers, competitor Ford Motor last month replaced CEO Mark Fields with Jim Hackett. Ford Motor has experienced a decline in the company’s North American revenues and share cost.

At General Motors’ annual shareholder conference, shareholders will vote on Greenlight’s plan to split GM shares into 2 classes, which the fund’s creator David Einhorn stated in March could enhance the GM’s $52 billion market capitalization by $38 billion.

On the automaker’s proxy website, the automaker assured the shareholders its assistance for its board members: “We believe your directors represent the best mix of expertise, credentials and abilities to advance GM’s business strategy and serve the interests of all shareholders by driving long-lasting value creation.”