Deals
Einhorn Was Rejected by GM, But Revealed Barra's Big Problem
- CEO has produced profits but investors haven’t pushed up stock
- Einhorn notes underperformance, lack of respect for dividend
Einhorn's Rejection by GM Reveals Big Problem for Barra
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Mary Barra has more than turned around General Motors Co. That’s not been good enough for Wall Street.
Record profit Barra has delivered as chief executive officer has failed to inspire shareholders including a high-profile one: hedge-fund billionaire David Einhorn. His proposal on Tuesday to split GM stock into two classes -- summarily dismissed by GM -- underscores the challenges Barra faces in translating GM’s enviable financial results into a higher stock price.