Activist Hedge Funds are increasingly pushing former CEOs onto Boards
|April 15th, 2010||
|2009 saw a noticeable increase in the number of experienced executives appointed to company boards by activist shareholders. According to the Wall Street Journal, approximately 24% of the 213 dissident nominees had previously occupied top management positions in public companies. In 2004, only 22% of the 73 dissident nominations fit the description. The strategy increases the pressure on under-performing company leaders and may end in a higher percentage of activists’ board victories in proxy battles.|
A striking example is activist hedge fund manager Steel Partners LP’s proxy battle for small technology company Adaptec Inc. that began in 2007. John Mutch, CEO of BeyondTrust Software Inc. and former CEO of Peregrine Systems Inc., were appointed to Adaptec’s board in the fall of that year, along with two Steel Partners officials John Quicke and Jack Howard. Mr. Howard became chairman in 2008, supported by Mr. Mutch and his valuable experience as CEO of a technology company.
Notably, Mr. Traub is also currently seeking a seat on the Bitstream board with the help of Bill Martin’s Raging Capital Management, LLC. For more information on activist shareholder hedge funds, visit HedgeTracker's Activist Hedge Fund Directory.
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