Upping the Ante in a Play for a Stronger Board

THE NEW YORK TIMES BUSINESS Wednesday, April 3, 2013

DealBook

Upping the Ante in a Play for a Stronger Board, by Steven M. Davidoff

“Would you pay a director tens of millions of dollars for fantastic performance?  Welcome to the newest trend in activist investing: hedge funds paying their nominees to a company’s board as if they were chief executives…

Agitating for changes and waging proxy fights are familiar pages from the activist investor playbook.  What’s different here is that each hedge fund is promising  to pay its director candidates what are essentially bonuses that could run into millions of dollars, if not more.”

Upping the ante is a generally a gambling term for backing your bet with more chips or money, usually in poker;  your “playbook” on that particular deal calls for more money, hoping that you will have a win.

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