Netflix shareholders will vote on at the company’s annual meeting on Monday is a proposal by two public pension funds to separate the roles of chairman and chief executive. Both are held by Reed Hastings, Netflix’s co-founder.
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.
De La Merced, M.K. (2014). Netflix Investors to Vote on C.E.O.-Chairman Split. The New York Times, June 8 (Retrievable online at http://dealbook.nytimes.com/2014/06/08/netflix-investors-to-vote-on-c-e-o-chairman-split/?rref=homepage&module=Ribbon&version=origin®ion=Header&action=click&contentCollection=Home%20Page&pgtype=article)