OREANDA-NEWS. 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."