DETROIT -- General Motors board on Monday will consider plans to cut the automaker's dividend by as much as 50 percent, cut the salaries of top executives and give a board seat to Jerry York.
According to sources familiar with GM's plans, the board is considering a number of proposals originally put forth by York. He represents Las Vegas billionaire Kirk Kerkorian, who owns 9.9 percent of GMs shares.
Last week, GM spokesman Toni Simonetti confirmed that GM traditionally votes on its dividend at this time of year. But she declined to confirm which issues were on the board's agenda.
If GM cuts the dividend and executive salaries, it would appear that the company is carrying out some of the measures that York recommended in his speech last month in Detroit.
During a public appearance last week in Baltimore, company CEO Rick Wagoner said some of York's proposals made sense. Asked at the time if the board would slash the dividend, Wagoner said, "I can't say that's an item on the agenda, but obviously they've had a chance to see Jerry's remarks."
Last December, GM invited York to accept a seat on its board. But York declined the invitation after he reportedly rejected GM's conditions.
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