Yesterday, August 9th, Dan Akerson, GM’s Chief Executive, bought over $500,000 worth of the automaker’s shares.
Akerson, who became GM’s CEO in 2010, bought 25,000 shares at $20.35 per share, after he purchased 10,000 shares in August 2011 at $25.05 each and 30,000 shares in May 2011 at $31.33 each.
“It’s a signal that he believes that General Motors is well positioned today and for the future,” said Dennis Virag, president of Ann Arbor, Michigan-based Automotive Consulting Group. “He is showing confidence in the organization. He’s putting his money where his mouth is.”
In 2011 GM regained its position as world’s top- selling automaker and also reported a record annual profit of $9.19 billion. But now, due to the company’s rising losses in Europe, GM sales reached 4.67 million units for the first half of the year, under Toyota’s 34% increase to 4.97 million vehicles. Today at 12:31 in New York, GM increased 1.4% to $20.67.
GM’s largest shareholder is the US Treasury which holds 32% of the automaker. In 2011 GM paid Akerson $6 million in stock awards and $1.7 million in salary. The U.S. Treasury Department announced in July that his 2012 compensation will be frozen at the 2011 level.