Why Sumner Redstone's Health Hasn't Concerned Wall Street
When founder and executive chairman Sumner Redstone didn’t speak Thursday during Viacom…
(Feb 5, 2015) — When founder and executive chairman Sumner Redstone didn’t speak Thursday during Viacom’s
conference call, the industry noticed. Curiously, though, Wall Street chose mostly to ignore the anomaly.
Link To Articlehttp://www.hollywoodreporter.com/news/why-sumner-redstones-health-hasnt-769956
After the conference call, in fact, research notes focused on the company’s operating trends. Even when The Hollywood Reporter reached out to the analyst community, most declined to discuss the matter….
Redstone repeatedly said he plans to stay involved at both companies until his death (and he often jokes he will live forever), and some experts see no cause to pressure Redstone into retirement. “Outside of a mandatory retirement age policy (which Viacom doesn’t have for directors), I do not know of any other means that would automatically remove him from the board,” said David Becher, an associate professor of finance at Drexel University.
Governance experts, in fact, say that death is the most likely reason for a change of chairman at a company controlled by a founder when the founder does not step down.
Paul Lapides, professor and director of the Corporate Governance Center at Coles College of Business at Kennesaw State University, says there isn’t a consensus on how best to deal with an aging chairman whose health is in decline. “I lean in favor of little or minimal disclosure of health, like Apple did with Steve Jobs,” he said.
A leader in innovative teaching and learning, Kennesaw State University offers more than 150 undergraduate, graduate and doctoral degrees to its more than 41,000 students. With 11 colleges on two metro Atlanta campuses, Kennesaw State is a member of the University System of Georgia and the second-largest university in the state. The university’s vibrant campus culture, diverse population, strong global ties and entrepreneurial spirit draw students from throughout the region and from 126 countries across the globe. Kennesaw State is a Carnegie-designated doctoral research institution (R2), placing it among an elite group of only 6 percent of U.S. colleges and universities with an R1 or R2 status. For more information, visit kennesaw.edu.