David Einhorn, the occasionally outspoken hedge-fund manager at Greenlight Capital, has faced public vilification for taking on Apple Inc.’s board. Investors and securities regulators should instead be thanking him for upholding shareholders’ rights.
After 30-year-old Harold W. “Terry” McGraw III helped his father fend off a hostile takeover from American Express Co. more than three decades ago, McGraw-Hill Cos. shareholders were rewarded with an 11 percent annualized return through 2012.
Facebook Inc.’s deal to acquire Instagram, the mobile photo-sharing application, for about $1 billion in cash and stock, was done in a mere 54 hours said Facebook’s lead partner on the deal, Greg Roussel of Fenwick & West LLP.
Hewlett-Packard Co. investors , gathered at an annual meeting today, voted against proposed compensation packages for top executives, signaling that shareholders want more influence over how managers are rewarded.
When a company goes public, it must tell shareholders how it plans to govern itself. The new owners are promised a piece of the profits and a say in how the company is run. The standard arrangement for apportioning control is “one share, one vote.” That’s a good, tried-and-tested design, but it seems to be going out of fashion.
Corporate boards are more optimistic about prospects for the U.S. economy than the general public is, said Timothy J. Ingrassia , head of mergers and acquisitions in the Americas for Goldman Sachs Group Inc.