GM CFO On What Led The Company To Seek A 20p Dividend Increase

General Motors Company GM came with better than expected fourth-quarter earnings on Wednesday, which sent its shares soaring on opening. The company declared net income of $0.66 a share, compared to $0.57 a share it reported in the same quarter last year. GM also announced its plans to increase its dividends by 20p this year.

Chuck Stevens, General Motors EVP & CFO, was on CNBC post the declaration of results to break out the company's quarterly results. He also discussed whether the move to raise dividends was a result of pressure from activist shareholders.

“I think that when you look at our core performance in 2014 and the fourth quarter, very strong performance overall EBITDA adjusted of $2.4 billion, which was significantly higher than consensus and I think that’s one of the biggest drivers of the difference in EPS,” Stevens said. “Importantly that CAPS are very strong from 2014 from a corner-line performance perspective really led by our two most important markets, North America and China.”

How Much Impact Did Demands Of Activist Investors Have Had In You Seeking A 20p Increase In Dividend From The Board?

“Our planned increase in the dividend is very consistent with our state objective, which has been to have a growing and sustained dividend underpinned by strong business performance,” Stevens said.

“And announcing it today in conjunction with our strong 2014 performance as well as our expectations of better performance in 2015, including improved profitability in all four automotive regions is consistent with that objective. So, nothing has really changed.”