Saturday, March 31, 2012

Icahn on Icahn

...One of the major problems in our country, with many exceptions, are CEOs – and our corporations are run in a dysfunctional manner. It’s amazing when you get in there how badly they’re run. And we can get a lot done as activists. During the last few years the market value of the common stock of companies that we were in, amazingly rose $55 billion and they were only $20 billion when we started buying. This certainly helped all shareholders. Often the boards do the opposite of what they should be doing. A board should make management accountable. They often don’t do that, they’re often buddies. They want to go to the Super Bowl … In the companies that we control, we don’t micromanage. We let the CEO run it, but we keep him accountable at the board level. If the numbers aren’t coming, the board needs to go in and find out why. If there have to be certain changes made, the board needs to do it. It’s hard to do that in a public company. You often can’t get rid of a CEO at a public company, unless I come along with a huge proxy fight.
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