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Finance: What is a Dissident Director? 4 Views


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What is a Dissident Director? The Board of Directors of a company usually reaches a consensus the majority of the time in order to decide on policies to move forward. There are occasions, however, when a Director opposes the other board members and proposes other policies that lack the support required to be enacted in a vote. Such a director is referred to as a Dissident Director. Sometimes the dissent can be reasoned and amicable, but other times it can be contentious and become acrimonious.

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Transcript

00:00

Finance allah shmoop What is a dissident director Well everyone

00:08

else wanted diet but thiss guy well he just insisted

00:12

on regular he's the dissident going against the state against

00:17

the tide against the vote while a dissident director is

00:21

a member of the board who either votes against the

00:24

set of new mandates that everyone else went thumbs up

00:29

on and or who initiates her own vote which is

00:33

pretty much the opposite of what everyone else wants You

00:36

know we know people like that like maybe they voted

00:39

to replace all the toilets in the corporate washrooms with

00:42

today's It's happened Really In real life a dissident director

00:46

can dissent against popular board vote in things like the

00:50

company accepting a takeover bid at fifty eight bucks a

00:54

share in stock Well that dissident director might demand that

00:58

the takeover dobie paid in cash because well she doesn't

01:02

trust the stock market's appraisal of the valuation of the

01:05

stock currency being used to take over their company Well

01:09

another descent might revolve around a company seeking toe over

01:13

pay for an acquisition Like that dissident director might be

01:16

the lone rational voice suggesting that they not pay Ah

01:20

Hundred times revenue to take out a competitor And the

01:24

dissident director may also come from an operational perspective In

01:28

that they want to fire the ceo for poor performance

01:31

whereas the rest of the board loves being on the

01:33

ceo's good side for the selfies and you know all

01:36

the good instagram ingredients Well sometimes all it takes is

01:39

one brave soul to go against the crowd although when

01:42

it comes to the diet coke thing it might just 00:01:45.209 --> [endTime] be better toe Pick your battles

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