General Motors CFO And Company's 20% Dividend Increase

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

Chuck Stevens, General Motors' EVP and CFO, was on CNBC after the declaration of results to break down the company's quarterly results. He also discussed whether the move to raise dividends was a result of pressure from activist shareholders or from somewhere else.

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“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.”

What Was The Impact Of Activist Investors' Demands?

When asked what impact demands from activist investors had on the search for a 20 percent increase in dividend from the board, Stevens replied, “Our planned increase in the dividend is very consistent with our stated 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.”