Netflix shareholders

Netflix shareholders

The article discusses Netflix shareholders, who will vote at the company’s annual meeting on a proposal by two public pension funds to separate the roles of chairman and chief executive officers.

Click on the following link to locate the article

http://dealbook.nytimes.com/2014/06/08/netflix-investors-to-vote-on-c-e-o-chairman-split/?

Questions:

1. Who are the backers of this corporate governance issue and why do you think they are pursuing this?
2. What other firms have been pressured to do this in recent years? Is this a good thing? Discuss in terms of costs and benefits.
3. What are some of the recent battles that Netflix has encountered? Discuss whether any of these could be related to this corporate governance issue.

Answer Preview

This issue of corporate governance has increased its popularity due to the positive outcome of Netflix where it had its shares rise above ninety five percent a year after approval. This has in turn made firms like JP Morgan Chase and Abercrombie and Fitch face pressure to follow suit (Cagan, 2016). This proposal is favorable to the company since it eliminates conflict of interest…