DETROIT, March 21, 2016 /PRNewswire/ -- Ally Financial Inc. (NYSE: ALLY) today announced that it will appoint a new independent director to its board of directors. The new independent director will be identified in consultation with Lion Point Capital, as well as some of Ally's other largest shareholders. Ally expects to appoint the new director no later than June 30, 2016. The appointment will expand the board to 12 members.
"Adding a highly qualified and independent director to our board demonstrates Ally's continued commitment to diverse perspectives and sustainable shareholder value creation," said Ally Chairman Franklin W. Hobbs. "Our inclusion of shareholder input in this process reflects our commitment to strong corporate governance."
In addition, the Ally Board of Directors amended the company's bylaws to permit shareholders holding at least 25 percent of Ally common stock to call a special meeting, as well as to provide for majority voting in uncontested director elections. These changes were effective as of March 16, 2016.
Ally's upcoming proxy will include updates to executive compensation policies, which will be directly connected to the company's financial and operational performance, to better align management's and shareholders' interests. The Ally Board's Compensation, Nominating and Governance Committee is also continuing to explore programs to further ensure the alignment of these interests.
In connection with these important developments, Hobbs commented: "Ally has undergone tremendous transformations over the past several years, and today has the strongest auto finance franchise in the U.S., with a simple and clean balance sheet. Ally's portfolio contains high-quality secured loans generated via strict underwriting standards and has demonstrated effective risk management and consistent profitability. Our leading direct bank also continues to grow in importance with several important new products to be rolled-out through the course of 2016."
"We are frustrated with the market perception reflected in the price of Ally's stock and the current discount to book does not reflect the inherent value of this company. Management expects to announce a number of new initiatives that will drive value creation over time and further position Ally for strong, long-term performance. Being a disciplined steward of capital remains at the forefront of our decisions, and there is much more potential to be realized in this company. We are all aligned in our commitment to maximize shareholder value both operationally and strategically."
About Ally Financial Inc.
Ally Financial Inc. (NYSE: ALLY) is a leading automotive financial services company powered by a top direct banking franchise. Ally's automotive services business offers a full spectrum of financial products and services, including new and used vehicle inventory and consumer financing, leasing, vehicle service contracts, commercial loans and vehicle remarketing services, as well as a variety of insurance offerings, including inventory insurance, insurance consultative services for dealers and other ancillary products. Ally Bank, the company's direct banking subsidiary and member FDIC, offers an array of deposit products, including certificates of deposit, savings accounts, money market accounts, IRA deposit products and interest checking. Ally's Corporate Finance unit provides financing to middle-market companies across a broad range of industries.
With approximately $158.6 billion in assets as of Dec. 31, 2015, Ally operates as a financial holding company. For more information, visit the Ally media site at http://media.ally.com or follow Ally on Twitter: @Ally.
In this press release and in any related comments by Ally Financial Inc. ("Ally") management, the use of the words "expect," "anticipate," "estimate," "forecast," "initiative," "objective," "plan," "goal," "project," "outlook," "priorities," "target," "explore," "positions," "intend," "evaluate," "pursue," "seek," "may," "would," "could," "should," "believe," "potential," "continue," or the negative of any of those words or similar expressions is intended to identify forward-looking statements. All statements herein and in any related management comments, other than statements of historical fact, including without limitation, statements about future events and financial performance, are forward-looking statements that involve certain risks and uncertainties.
While these statements represent our current judgment on what the future may hold, and we believe these judgments are reasonable, these statements are not guarantees of any events or financial results, and Ally's actual results may differ materially due to numerous important factors that are described in the most recent reports on SEC Forms 10-K and 10-Q for Ally, each of which may be revised or supplemented in subsequent reports filed with the SEC. Such factors include, among others, the following: maintaining the mutually beneficial relationship between Ally and General Motors, and Ally and Chrysler, and our ability to further diversify our business; our ability to maintain relationships with automotive dealers; the significant regulation and restrictions that we are subject to as a bank holding company and financial holding company; the potential for deterioration in the residual value of off-lease vehicles; disruptions in the market in which we fund our operations, with resulting negative impact on our liquidity; changes in our accounting assumptions that may require or that result from changes in the accounting rules or their application, which could result in an impact on earnings; changes in our credit ratings; changes in economic conditions, currency exchange rates or political stability in the markets in which we operate; and changes in the existing or the adoption of new laws, regulations, policies or other activities of governments, agencies and similar organizations (including as a result of the Dodd-Frank Act and Basel III).
Investors are cautioned not to place undue reliance on forward-looking statements. Ally undertakes no obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events or other such factors that affect the subject of these statements, except where expressly required by law.
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SOURCE Ally Financial