Allergan, ?
In response to activist investment pressure from Appaloosa and, subsequently, Chevedden, Allergan announced that it would look to separate the role of CEO and chairman – currently held by one individual, Brent Saunders.
The pressure comes as Allergan’s share price dipped from highs of approximately $190 (€169), in October 2018, to $146 (€130) at present. The investment groups are calling for a separate chairman to provide greater decision-making oversight.
Allergan announced in a SEC filing that it would make the two roles independent, but only during ‘the next leadership transition’.
The company’s board stated that this “demonstrat[es] the continued commitment…to strong governance practices and responsiveness to ongoing shareholder feedback.”
This was not enough to appease the activist investors, with Chevedden joining Appaloosa in calling for immediate separation of the roles.
