More Corporate Boards Seeking Ouster Of Founder-Executives

A Reuters article looks at an increasingly common governance issue. Responding to shareholder demands that they take a more active role in succession planning and fiduciary matters, boards are scrutinizing and in some cases seeking to oust company founders who have become CEOs or board chairs. Examples cited include American Apparel Inc., Lululemon Athletica Inc, Men’s Wearhouse Inc and Best Buy. In some cases the executives are using their equity stakes in the company to fight back.