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Ackman a "rogue" according to JCP board source

  • The J.C. Penney (JCP) board met late Sunday to consider its next steps, including possibly taking action against Bill Ackman - the company's largest shareholder and a director - after Ackman brought board deliberations into the public by urging quick movement on replacing CEO Mike Ullman.
  • Sticks and stones - "Rogue" is a nasty word, but it's not clear whether Ackman violated any legal duty, and the board seems to have few options for isolating him. "They have to learn to live with each other - one way or another," says one corporate governance expert.
  • One possibility would be the board refusing to renominate Ackman as a director when he comes up for re-election next spring.
Comments (9)
  • Stone Fox Capital
    , contributor
    Comments (5753) | Send Message
     
    sure seems like shareholders should vote on whether to keep him or not.
    11 Aug 2013, 11:50 PM Reply Like
  • KJP712
    , contributor
    Comments (437) | Send Message
     
    Ackman is forgetting the most important rule: Never blow up the Firm on any one stock.
    11 Aug 2013, 11:52 PM Reply Like
  • Mercury Value
    , contributor
    Comments (565) | Send Message
     
    one of two very public positions right now that ackman is tangoing with right now that could blow up the Firm.

     

    can't imagine what it must be like being a pershing square investor. don't people usually give their money to hedge funds so that they don't have to worry about it?

     

    guy makes for great copy, though, gotta hand it to him.
    12 Aug 2013, 12:01 AM Reply Like
  • sethmcs
    , contributor
    Comments (3067) | Send Message
     
    As the stomach turns so do the days of our lives......
    12 Aug 2013, 12:05 AM Reply Like
  • pklein
    , contributor
    Comments (110) | Send Message
     
    he's just shrewd and pretty much a prick but he also does plenty to bring this on himself, which I'm sure he could care less-good for him
    12 Aug 2013, 02:02 AM Reply Like
  • Sammy Lee
    , contributor
    Comments (298) | Send Message
     
    I see nothing wrong with what he's doing. He's their largest shareholder, and the company looks like it's headed for bankruptcy. Why wouldn't he try to rock the boat. The board's job is to protect the shareholders from inept management, and they haven't done that in a real sense. They never let Johnson even finish what they started, and they bring back the same guy who had a hand in JCP's downturn to run the company. The same guy with absolutely no vision for the company. Why wouldn't Ackman be pissed off at everybody at this point? Going back to what they had before is like Rihanna going back to Chris Brown so he can beat her again - essentially non-existent profit margins by discounting everything in sight. What they need is a whole new set of clientele, perhaps a younger generation of shoppers willing to pay for quality. It doesn't look like that's going to happen at this point.
    12 Aug 2013, 05:41 AM Reply Like
  • valuedriver
    , contributor
    Comments (67) | Send Message
     
    He appears that he is trying to tank the company and business to recap the business at a depressed enterprise value. He seemingly is using his position as a fiduciary and Director to deliver a deal to himself, which would be one of the most brazen acts of a breach of the duty of loyalty. He hopefully will be sued by the Board and exposed personally. A breach of duty of loyalty where one seeks personal profit (ie recap opportunity) is tyically not covered by the D&O policy.
    12 Aug 2013, 06:01 AM Reply Like
  • MaryLa
    , contributor
    Comments (38) | Send Message
     
    I know nothing but my comments at the 2012 shareholders meeting were more truth than fiction. I questioned why J.C.Penney was being controlled by an executive committee and the Board of Directors,all known experts in something but none were experts in the J.C.Penney Company operation. Now a man whose ego is out of control could pull the rug right from under the company if the Board tried to take action against him.
    Small stock holders that have been secure with J.C.Penney are being hurt from lose of dividends but have no power to take action against One egotistical individual that makes a game of using his power. (at our expense1)
    12 Aug 2013, 10:16 AM Reply Like
  • modanco
    , contributor
    Comments (36) | Send Message
     
    I voted "NO" for all the Board Members...except Ullman when I cast my ballot earlier this year. Ackman is a troublemaker and needs to be let go.
    12 Aug 2013, 10:31 AM Reply Like
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