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.
Hewlett-Packard Co. didn’t run afoul of corporate governance rules when it appointed directors who are acquainted with its chief executive officer and board chairman, attorney Martin Lipton said in a memo.
The financial system is in a slow state of recovery, and a pickup in takeovers will require more confidence in the U.S. economy, according to Evercore Partners Inc. Chairman Roger Altman and M&A lawyer Martin Lipton .
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.
Former FBI Director Louis Freeh, who is supervising the wind-down of bankrupt MF Global Holdings Ltd. and oversaw a probe of Pennsylvania State University’s child sex-abuse scandal, was named chairman of his law firm, Pepper Hamilton LLP.
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.