GENERAL DYNAMICS TO HOLD SPECIAL SHAREHOLDERS MEETING
GENERAL DYNAMICS TO HOLD SPECIAL SHAREHOLDERS MEETING ST. LOUIS, Nov. 6 /PRNewswire/ -- William A. Anders, chairman and
chief executive officer of General Dynamics (NYSE: GD), said today, "During 1991, our company has generated significantly increased backlog of new business and strong operating results thus significantly improving our potential for continued increase in our financial strength. Consequently, we recently announced that, even after meeting our liquidity and investment needs, we expect to generate additional cash which could be returned to shareholders through special distributions or some form of stock repurchase program."
Anders said, "Our strategic objective remains unchanged: to enhance shareholder value. Since the beginning of the year the market value of General Dynamics has more than doubled, recording almost a $1.3 billion increase in shareholder value. Our strong incentive plans have played a critical role in motivating employees at all levels to change a long-standing corporate culture focused on revenue growth to one more focused on profitability, financial strength and improving shareholder value." Given this success, the company believes that it is desirable to revise these incentive programs. The revised plans will even more closely align management and employee interests with those of outside shareholders and ensure no management or employee bias in determining the specific form of any future distribution or repurchase transactions that might occur. The revised plan will continue to incorporate strong incentives to enhance shareholder value and, in addition, will include downside risk and increased emphasis on long-term results. Management also intends to keep shareholders fully informed and updated regarding the company's plans to achieve its goals in a rapidly changing defense industry environment. Consequently, General Dynamics Corporation's board of directors has authorized the scheduling of a special shareholders meeting to approve revisions to the company's employee incentive plans. Among the proposed revisions are: the approval of a partial gain-sharing credit computed at a per share price of $52.0625; the substitution of a new stock option plan for the Gain/Sharing plan with an option price of $52.0625; the creation of a mechanism within the corporation's Savings and Stock Investment Plan to invest any special distributions, proceeds of tender offers; and other related items. Proxy materials detailing the proposed revisions and setting the date of the special meeting are expected to be filed with the Securities and Exchange Commission shortly. -0- 11/6/91 /CONTACT: Paul Hesse of General Dynamics, 314-889-8249/ (GD) CO: General Dynamics ST: Missouri IN: ARO SU: DC -- DC033 -- 1957 11/06/91 18:02 EST
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|Date:||Nov 6, 1991|
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