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General Motors Co. (GM) Chief Executive Dan Akerson purchased more than $500,000 worth of the automaker’s shares yesterday, according to a regulatory filing.
Akerson, who became CEO of the Detroit-based company in 2010, acquired 25,000 shares at $20.35 per share, according to the filing (GM) today. This follows his acquisition of 10,000 shares in August 2011 at $25.05 each and 30,000 shares in May 2011 at $31.33 each, filings show. He holds 272,828 GM shares, according to data compiled by Bloomberg.
“It’s a signal that he believes that General Motors is well positioned today and for the future,” Dennis Virag, president of Ann Arbor, Michigan-based Automotive Consulting Group, said today in a telephone interview. “He is showing confidence in the organization. He’s putting his money where his mouth is.”
While the company regained its status as the world’s top- selling automaker last year and posted a record annual profit of $9.19 billion, Akerson now faces challenges in stemming losses in Europe and staving off a resurgent Toyota Motor Corp. Toyota reported a 34 percent increase in global first half sales to 4.97 million vehicles, ahead of GM’s 4.67 million.
GM gained (GM) 1.4 percent to $20.67 at 12:31 p.m. in New York. The U.S. Treasury, which holds 32 percent of GM, is the automaker’s largest shareholder. GM stock declined 38 percent from its November 2010 initial public offering through yesterday.
Hedge-fund manager David Einhorn, chairman of Greenlight Capital Re Ltd. (GLRE), said on a conference call last week that GM is poised to rebound because there “is further embedded value.” Warren Buffett’s Berkshire Hathaway Inc. held 10 million shares of GM as of March 31, the Omaha, Nebraska-based firm said in May.
GM paid Akerson $1.7 million in salary and $6 million in stock awards and other compensation last year, the company said in April. The U.S. Treasury Department said that month that Akerson’s compensation in 2012 would be frozen at the 2011 level.
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