Is Gelly to GM what Gili is to J Lo?

OK, this post has nothing to do with the new Gelly, but it does cover GM. I just couldn't resist. FT.com reports that a close advisor to Kirk Kerkorian, one of GM's largest investors, will call for GM to cut its dividend, which is probably not a bad idea. The article goes on to state that GM pays $1.1 billion a year in dividends, while its burning through its cash. In a Wall Street Journal article that appeared later, it states that Kerkorian's advisor, Jerome York, called for a 50% cut in the dividend to $1 per share. More importantly, he calls for a substantial reduction in compensation for GM's directors and top management,

"with progressively smaller pay cuts down through the ranks, 'with hopefully only a single-digit reduction necessary among the rank and file in plants and offices.'"

Robert Barry, a Goldman Sach analyst, is given some cheerleading credit for the recent upward move in GM's stock price. I have not read his report, but from the FT article, I gather that he see it as "very unlikely" that GM would soon file for Chapter 11 bankruptcy protection. I am not in that camp, but he is not alone in his opinion.

I wouldn't advise an investment until GM's board gets serious about turning its ship around. A strong start would be to replace the captain that set it on its current course. Just a thought.