Overboarded Directors at Valeant, Yahoo! and Elsewhere Struggle With Activists, M&A – TheStreet

Corporate governance experts consider [Valeant director Robert Alexander] Ingram and hundreds of other individuals at companies targeted by activists or involved in M&A — or both — to be especially overboarded because they are taking on too many roles and can’t devote the extra attention required for what often becomes time-consuming situations.

“When you are in the midst of a transaction or a boardroom battle or both, directors are called on not just for more hours of work but they also have less flexibility over how to control those hours because they are responding to events and a tightly compressed calendar,” said Jon Lukomnik, executive director at the Investor Responsibility Research Center Institute in New York. “If you are a director who sits on four or five boards, you are giving the activist who is attacking you ammunition — he can say you aren’t focused enough.”

Source: Overboarded Directors at Valeant, Yahoo! and Elsewhere Struggle With Activists, M&A – TheStreet

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