What Elliott Management's Board Shakeup Means for IPG
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The board of directors at agency holding companies don’t typically make much noise, but that may no longer be the case at Interpublic Group of Cos., which reached a settlement with activist investor and shareholder Elliott Management. The outcome was three new board members. To make room, two existing board members were replaced, increasing the total number of directors to 10 from nine.
The most significant outcome may be the formation of a finance committee that will focus on improving IPG’s margins and advising on global financial strategies and transactions, according to a public filing. The five-person committee will include the three new directors. Elliott has a 6.9% stake in IPG as of Feb. 4.
An IPG regulatory filing indicated the settlement is a one-year agreement, meaning Elliott could launch a proxy fight to wrest majority control of the board in a year. But for now Elliott has high hopes for the trio. Meet the new independent directors:
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