On Tuesday, General Motors (GM) said it had cut its dividend in half to an annual rate or $1 per share, Reuters reports.
The cut represents the first time GM has reduced its dividend in more than 13 years, and will result in annual savings of roughly $565 million, Reuters said.
Along with the slashed dividend, the salary of GM’s Chairman and CEO Rick Wagoner will be cut in half, and those of its Vice Chairmen, John Devine, Robert Lutz and Fritz Henderson will be reduced by 30 percent, according to Reuters.
GM is currently struggling to pull itself up by its bootstraps after posting a loss of $8.6 billion in 2005, due to increasing labor and materials costs as well as low sales of sport utility vehicles, among other causes.
For coverage of GM’s recent IT outsourcing announcement, read GM Will Outsource $15B in IT Work.
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