By Josh Kosman May 25, 2018 | 10:03pm | Updated Carl Icahn Reuters see also Icahn pushing for removal of Xerox chief executive Xerox’s former boss gave up an $18 million golden parachute this month as he caved to pressure from billionaire Carl Icahn, The Post has learned. Ex-CEO Jeffrey Jacobson resigned on May 13 as Xerox abandoned a controversial merger with Fujifilm — a $6.1 billion deal engineered by Jacobson whose price Icahn and investor Darwin Deason had griped was too low. In doing so, sources said, Jacobson relieved the Xerox board from having to fire him — which would have opened the door for Jacobson to demand a two-year severance package with salary and benefits worth $18 million. Sources said Jacobson gave up the cushy exit in exchange for Icahn and Xerox agreeing to give him immunity from civil lawsuits over the Fujifilm deal. Icahn and Deason had sued Xerox in New York State Supreme Court to stop the merger, and Judge Barry Ostrager on April 27 granted a preliminary injunction temporarily blocking the merger, ruling there was probable cause for Xerox shareholders to sue Jacobson for “bad faith.” “The facts … clearly show Jacobson, having been told … that the board was seeking a new CEO to replace him, was hopelessly conflicted during his negotiation of a strategic transaction that resulted in a combined entity in which he would be CEO,” the judge ruled. Xerox directors were so worried after the judge’s opinion that some hired their own counsel, sources said. Paul Weiss lawyer Robert Schumer, the brother of US Senator Charles Schumer, is representing Xerox and Jacobson in the case. A Xerox spokesman declined to confirm the details of Jacobson’s resignation, which have yet to become public. For the moment, Icahn has won the battle but is losing the war. Xerox’s shares closed at $30.11 the day before Xerox scrapped the Fujifilm merger, and closed Friday at $27.91. Icahn is expected to seek a buyer for Xerox. Apollo Global Management has had interest for years, but is some distance from deciding whether to make an offer, a source said. Hewlett-Packard, too, is a potential bidder. Icahn declined to comment. https://nypost.com/2018/05/25/ex-xe...utm_campaign=SocialFlow&utm_medium=SocialFlow
I wish Carl Icahn were around on Wall Street during the financial blow-up in 2008 when Wall Street CEOs and executives were rewarded with huge $$$ despite blowing up their companies.
I wish shareholders had more actual say in all of this. Sure, you can cast a proxy vote for .. whoever they offer you ... and that accomplishes exactly zip. Wouldn't it be nice if these boards had to actually answer to their shareholders ?
Was he not around? I thought he goes way back like into the 1980s? I remember my dad worked for Texaco and Icahn was doing a raid and my dad was praising him for finally getting the Texaco stock out of the shitter haha.