GM gets mixed reactions for first virtual annual meeting

General Motors on Tuesday received mixed reactions to its first virtual annual shareholder meeting amid the company's efforts to cut costs and increase participation in the event.

The roughly hourlong meeting was praised for allowing easier access for shareholders to attend, but condemned as cowardice and depriving shareholders of in-person contact with board members.

One shareholder suggested a hybrid meeting that allows in-person attendance and virtual questioning. GM CEO Mary Barra said the company would evaluate the comments and suggestion.

At the beginning of the meeting, Barra said GM was excited about the virtual format and thought it would enhance shareholder communication with the board.

The GM board of directors, according to the company's annual proxy filing, decided on the virtual meeting to cut costs and enhance attendance by providing more convenient access to shareholders.

A GM spokeswoman said the virtual meeting achieved the company’s mission of increasing attendance, but she declined to disclose the number of people who registered for the event as shareholders. She said 125 people logged into the meeting, including shareholders and people who registered as “guests,” which also could include additional shareholders.

Attendance at previous in-person meetings has averaged less than 35 shareholders over the past five years, according to GM. That number does not include noninvestors such as media and others who may also have attended the event in the past who would have had to register as “guests” this year.

More than 1.4 billion shares representing 90 percent of GM's common stock outstanding were present at the meeting by proxy -- up from 85 percent during last year's meeting.

All board-recommended proposals, including board appointments and compensation, overwhelmingly passed by 97-99 percent.

Failed shareholder proposals not recommended by the board included the appointment of an independent board chairman — replacing Barra as GM's chairman — and requirements for GM to report lobbying activities in greater detail.

The independent chairman received 37 percent approval — in line with a year ago — and the lobbying proposal received 29 percent, according to preliminary voting results.

GM shares rose 6 percent  to close at $35.73 during a bullish day on Wall Street.

During the meeting, Barra faced a handful of shareholder questions ranging from GM's culture to its truck business and investments in full-electric and autonomous vehicles. Questions were submitted online and via phone.

Barra, in general, reiterated GM's efforts to profitably transform itself and create a future with "zero crashes, zero emissions and zero congestion" — a long-term mission of GM. She also summarized the company's ongoing business operations and recent accomplishments.

"As you can see, our transformation continues," she said. "We are taking the right actions to strengthen our core business, drive profitable growth, invest in the future and build a culture to win."

Barra said GM's launches of its redesigned Chevrolet Silverado and GMC Sierra full-size pickups remain "on track."

When asked about the company's GM Cruise autonomous vehicle unit, Barra did not mention or provide an update on its plans to launch a self-driving ride-hailing fleet in 2019. In general, she reiterated the operations would be "gated by safety."

"We're working aggressively," she said. "Our rate of iteration continues to improve. So, that is the position we're in and that's the approach that we have and we're very much looking forward to rolling out this technology because we do believe it will save lives."

The shareholder question-and-answer session lasted about 20 minutes — in line with last year's meeting. Additional questions and answers that were not addressed during the meeting are expected to be posted to GM's investor relations website by next week.

GM's decision to hold the virtual meeting comes two years after Ford Motor Co. moved its annual meeting to a digital format in 2017. Despite some grumbling about the online meeting, Ford said the format allowed nearly six times the amount of people to participate, including 147 shareholders -- up from 59 in 2016.

Such virtual meetings have been criticized for allowing executives to avoid in-person confrontations and complaints from investors. They also provide companies better protection from protesters and unexpected outbreaks during the meetings.