Following is a letter sent to the Editor of the Financial Times:
Dear Sir/Madam,
As is quite common when management organizes an increase in their empire, they begin to think of the many other things they would like to have as well (¨Alcatel and Lucent move to protect executives¨ Financial Times April 22, 2006).
This is the case with the management of Alcatel and Lucent who want to make it more difficult for shareholders after the merger to put their positions in jeopardy. This is one of the small print elements, and there are surely others, which need to be ferreted out and removed. If management does not want shareholders to remove them from their positions, why don´t they do something innovative, a good job.
All limitations on shareholders should be removed and, if not, shareholders should vote against the deal.
Onésimo Alvarez-Moro
See article:
Alcatel and Lucent are to announce a management agreement that would require an overwhelming board majority to remove either Patricia Russo, the incoming US chief executive, or Serge Tchuruk, who is expected to be named chairman.
The telecoms equipment groups have agreed a provision that would require a vote of no confidence by two-thirds of the combined Franco-US board to remove either Ms Russo or Mr Tchuruk in the event of any substantial strategic differences.
The board will be comprised of six Alcatel directors, six Lucent directors and two independent European directors.
See full Article (paid subscription required).
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