A new study by Columbia Business School examines the behavior of CEOs when a looming proxy contest
threatens their leadership, and finds that CEOs will almost always exercise their options out-of-the-money in order to boost their voting power.
MIAMI - A shareholder group said Monday that it wouldn't wage a proxy contest
to name an alternative slate of directors at Tenet Healthcare Corp.
Commenter also contends that First Mariner would have violated the Interlocks Act if a recent proxy contest
challenging Glen Burnie's management by a dissident shareholder that was supported by First Mariner had succeeded.
1) Jensen and Ruback (1983) report a 30% abnormal stock price gain with a successful corporate takeover by tender offer but only an 8% increase with a successful takeover by proxy contest
The firms which have recently had a proxy contest
are both large and small, including Avon Products, Del Webb Corporation, General Motors, Honeywell, Irving Bank, K-Mart, Lockheed, NCR Corporation, Pic 'N Save, Texaco, UAL Corporation, and USX.
The costs of a proxy contest
to protect corporate policy, for example, were deductible as ordinary business expenses in Locke Manufacturing Companies v.
Also, potential dissidents may decide that the economic risks involved in a pure proxy contest
outweigh the rewards.
As previously announced, the Platinum Group is a dissident stockholder group led by Platinum Management (NY) LLC that is pursuing a proxy contest
to elect Shepard M.
Members of NetSol Shareholders Group LLC hold more than 25 percent of NetSol's stock and initiated a proxy contest
to gain control of the company from its current owners in April.
A recent empirical study by Pound |12~ confirms that certain inefficiencies in the current proxy system dissuade dissidents from challenging management's slate to the board of directors in a proxy contest
Based on FactSet SharkRepellent's current proxy contest
data, Olshan has advised on 21 of the 74 total proxy fights waged or threatened during the 2013 proxy season, representing approximately 30 percent of all proxy fights nationwide this year.
12, 2013 /PRNewswire/ -- North & Webster, LLC ("North & Webster") announced today that it has withdrawn its proxy contest
with CSP Inc.