Why are staggered boards bad?

Why are staggered boards bad?

Although staggered boards are useful in preventing hostile takeovers, they are also considered to be disadvantageous to shareholders. Due to their negative impact on shareholders, staggered boards have recently been on the decline.

What is staggered term?

Staggered Term means a system of electing four members of the Executive Council in one election and three members at another election in alternate years.

What are staggered board elections?

In other words, the staggered board is the governance practice in which certain members, generally one-third of the total board of directors are elected each year, rather than all at once. The major advantage of a staggered board over the traditionally elected board is that it helps in preventing the hostile takeover.

What are the benefits of a staggered board?

The Pros of a Staggered Board of Directors

• Non-management directors receive a longer term.
• There is protection from an aggressive or abusive takeover.
• There is less pressure to bow to short-term needs.
• It reduces training needs.
• A staggered board typically reduces the value of a company.

What is the synonym of staggered?

lurch, walk unsteadily, reel, sway, teeter, totter, stumble, wobble, move clumsily, weave, flounder, falter, pitch, roll. 2’I saw a sight that staggered me’

Why is paying greenmail considered unethical?

Greenmail is often seen as a predatory practice, bordering on extortion. In this view, the greenmailer who buys up shares does not intend to participate in the company’s operations as a shareholder. Instead, the greenmailer buys the shares intending only to threaten management with a hostile takeover or other actions.

What are two synonyms for staggered?

staggered

• careen.
• falter.
• lurch.
• reel.
• shake.
• teeter.
• wobble.
• totter.

What is staggered manner?

to arrange in a zigzag order or manner on either side of a center: The captain staggered the troops along the road. to arrange otherwise than at the same time, especially in a series of alternating or continually overlapping intervals: They planned to stagger lunch hours so that the cafeteria would not be rushed.

What does it mean to have staggered terms?

Staggered Terms An arrangement whereby only a certain number of members of a board of directors are elected in a given year. For example, a board of directors may have 10 members serving five year, staggered terms where two new members are elected each year. Membership terms for a firm’s directors that expire in different years.

What does staggered term mean?

Staggered Terms. An arrangement whereby only a certain number of members of a board of directors are elected in a given year.

What is the meaning of staggered payment?

Staggered payment is an option under a term plan wherein the nominees receive a portion of the sum assured as a lump sum and the remaining money comes in form of monthly or annual payments. The duration of the payments varies from policy to policy.