Allergan shareholders reject proposal to split roles of chairman and CEO
Allergan shareholders have rejected a proposal to immediately separate the roles of CEO and chairman, both of which are currently held by Brent Saunders.
The proposal, put forward by hedge fund Appaloosa, was rejected by 61.3% of shareholders.
“The Allergan board appreciates the support of our shareholders reflected in the voting results” Allergan said. The motion comes after the company agreed to split the roles in the next leadership transition.
The firm however argued that splitting the roles immediately, as requested by Appaloosa, “could impede the board’s effectiveness by creating a crisis of confidence in Saunders at a time when leadership stability and effectiveness is critical.”
The push from Appaloosa comes after the investigational therapy rapastinel failed to improve outcomes in three late-stage studies of major depressive disorder.
The hedge fund has also pushed for a merger unless management are held to account. Allergan posted a fourth-quarter loss of $4.3 billion in the final three months of 2018.
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