Management Turnover as Change Agent

Tuesday, November 4, 2008

Recommended reading - Optimistic activists, The

Ron Orol of the wrote a clever piece today entitled Optimistic activists.  The article focuses on how certain activist investors have been approaching today’s difficult market.  In the story, Orol focused on the importance of management and how they plan to deal with it.  Below is a brief snippet of the story,

Companies with weak management are attracting activists seeking to change boards and executives, focusing on profit and loss statements rather than cash on the balance sheets that can be handed to investors. Bulldog Investors’ Phillip Goldstein expects that trend to continue in the coming months, as CEOs are no longer able to hide behind improving share prices. “One group has so far escaped unscathed — boards of directors, the very people responsible for these financial problems,” says Goldstein. “There is too much collegiality on boards, not enough skepticism.”

 Anyone interested in management and how it might be impacted by activist investors should check the piece out.

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