Thursday, July 3

Is corporate governance ruling America???

By Shilpa Nangali

Carl Icahn is currently on the downside of his hedge-fund career. Icahn, who is famous as 'the shrewdest investor on the planet' has lost money on Motorola, his biggest investment!

He also failed to persuade executives at Yahoo! and Biogen Idec to take his advice for boosting their stock prices. He lost a proxy battle in June 2008 to elect his candidates to Biogen's board, making a sale of the world's biggest maker of multiple sclerosis drugs less likely. Icahn has declined to comment on his investments and performance. I visited Icahn's blog and read his articles. Most of the articles in Icahn’s blog are against the managers and boards of large firms in America.

People talk about corporate governance in America and all that..but I really never understood how Pfizer could pay Hank McKinnell $180 million in retirement benefits – a person who presided over the deletion of tens of billions in Pfizer’s market value. Or even, how the board of Cell Therapeutics, that reliably subpar performer, could in 2006 pay its CEO James Bianco some $1.1 million in cash along with other perks, $220,000 in the use of chartered aircraft.

Thinking about all this a question arises in my mind- Is corporate governance ruling America or is it stinking?

Sources: Bloomberg & The Invivo Blog

6 comments:

  1. U write articles on health, technology, corporate news, poetry, book reviews all dat...I love such diversifying outlook..keep it up!

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  2. There is an old saying, "You cant teach an old dog new tricks." I just came across an article on Bloomberg By Katherine Burton, which read "Carl Icahn has hit the roughest patch of his hedge-fund career." I guess you have hit the nail on the coffin on this one. Cheers!

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  3. @ Rocksta:

    People who have long been used to doing things in a particular way will not abandon their habits. U are right and yeah I have mentioned Bloomberg as one of the sources. Thanks!

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  4. @ Stephen

    Thanks so much :)

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  5. You’re never too old to change ur ways. Learning is always possible. But ppl often dnt realize dat!

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  6. Steve, I agree with u..most of us are blind wen it comes to our mistakes! We need to overcome this with a quest for rectifying mistakes.

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Type here.......:)