In spite of its lackluster performance of late, Motorola (NYSE: MOT) has decided it doesn't want King Icahn [subscription required]. CEO Ed Zander wrote letters to shareholders and employees saying Icahn is "not the right person to serve as a Motorola director." More puzzlingly, Zander wrote that Icahn's responsibility to his hedge fund investors "may conflict with his ability to represent all stockholders."
Now hold on. Icahn's responsibility to his hedge fund investors is to generate high returns. The board's responsibility to shareholders is to generate high returns. So what's the conflict? Given Icahn's ownership of 3% of MOT stock -- an investment worth over a billion dollars -- it's hard to imagine someone whose interests are better-aligned with those of outside shareholders.
Mr. Zander, it's beyond me why you wouldn't welcome one of the foremost business and governance experts of our time on the company's board. This looks like it has more to do with Zander's desire to keep control over the company than any altruistic desire to "represent all stockholders."
Will Rich Ross really have a positive impact on Disney's movie operations?
Consumers sick of recession, may spend extra on holidays
Corrections, seasonality and Santa Claus
Reader Comments (Page 1 of 1)
5-02-2007 @ 11:33PM
steve said...
like the change of seasons,it's time for Zander to
go. MR.Zander is lackluster.
5-03-2007 @ 11:05AM
Bernie Kieklak said...
I wonder if the so-called "experts" would care to give us the number of companies that Icahn has destroyed in his takeover tactics.
5-21-2007 @ 1:21AM
buttebl said...
Oh Ed (Zander)how low you have sunk. Why doesn't he try to be positive and sink some on his deep pocket money into commercials for Moto, intead of sharing the 30 second "spots" with other wireless vendors? His very negative comments on the proxy vote letter did not take him out of the spotlight, but showed what a defeated individual he's turning out to be. Get off the golf course Ed! Pay attention to the headset sports volumne and try to increase that position, if you are listening - "Wake up Ed"!!!