General Motors Co. yesterday became the latest company to return billions of dollars to shareholders amid tussles with investors over how to better allocate corporate cash, the Wall Street Journal reported today. Facing a potentially contentious fight over a board seat and a larger buyback, the carmaker tried to walk the line between placating big investors and spending more on its future. GM disclosed a $5 billion stock repurchase, a sum that comes on top of a previously announced dividend increase, and an additional $9 billion it will spend this year to improve brands including Cadillac, boost fuel efficiency and develop electric and driverless cars, among other things. GM made its buyback decision after top officials determined its $25 billion in cash was more than enough to fulfill spending plans and handle uncertainties like the federal investigation into a botched ignition-switch recall. The nation’s largest automaker had come under fire from Harry Wilson, a former architect of GM’s federal bailout, who wanted an $8 billion buyback and had the backing of four hedge funds in his bid to get a seat on the company’s board.
