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Hostiletakeovers. The researchers framed their analysis through the lens of hostiletakeovers, which they reasoned cause considerable stress in the boardroom. “The health implications of stress are a very under-studied dimension for many jobs,” the researchers explain. “We
I spent almost 30 years as a lawyer in private practice, advising business leaders on Delaware corporate law issues – addressing matters like preferred stock financings, IPOs, mergers, hostiletakeovers, proxy contests, corporate governance and fiduciary issues.
A number of states enacted laws to prohibit hostiletakeovers of firms, with this appearing to significantly reduce the stress experienced by CEOs. The authors note that before the recession, there appeared to be a much smaller gap between distressed and non-distressed CEOs, with the gap staying fairly stable.
That’s my concern that financial-only focus without regard to other corporate dynamics bespeaks of hostiletakeovers, ill-advised rollups and corporate raider activity in search of acquiring existing books of business.
That’s my concern that financial-only focus without regard to other corporate dynamics bespeaks of hostiletakeovers, ill-advised rollups and corporate raider activity in search of acquiring existing books of business.
A low stock price can make the firm vulnerable to a hostiletakeover, for example. However, there are many other reasons too, and I suspect these other reasons might be more important drivers of managers' decisions. Moreover, in many cases, managers have bemoaned to us the "hell we got" from their boards when the stock price fell.
This was quickly followed by the era of hostiletakeovers in the 1980s. The junk bond market made financing large takeovers possible and even the biggest among the Fortune 500 firms were no longer safe from a forced acquisition. In the past, such takeovers had largely been restricted to the world of smaller firms.
But starting in the late 1970s, a new vision of the corporation and the role of CEOs emerged – prodded by corporate “raiders,” hostiletakeovers, junk bonds, and leveraged buyouts. American companies and American citizens achieved a virtuous cycle of higher profits accompanied by more and better jobs.
which is by global standards pretty close to the textbook, would-be reformers often cite the British example (on shareholder input into executive pay, for example, or the ease of hostiletakeovers) as something to strive toward. Even in the U.S.,
Founder and primary owner of Icahn Enterprises, Icahn had been tagged a corporate raider for his hostiletakeover of TWA in 1985. It was the directors’ decision to make, but it was one helped to catalyze into reality by Carl Icahn. But in recent times a better sobriquet has been that of activist investor.
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