If your favorite company has an "overboarded" board, chances are an activist investor is going to come knocking to throw those directors... well, overboard, to turn a phrase.
Unless your company is going gangbusters, chances are these insurgents will look to agitate for change at the board level in an attempt to shake things up, and, in turn turn up revenues.
Well, Procter & Gamble Co. (PG) shareholders, that is exactly what's going on at your beloved consumer products company.
Consider that Procter & Gamble directors serve on average of 2.63 public boards, according to BoardEx, well above the overall average of 2.01 directorships for S&P 500 boards.
Luckily for activists, and maybe shareholders (P&G shares are up 8% since Nelson Peltz's outfit got involved), P&G isn't alone in carrying over-tenured and overboarded directors. The lot also includes Valeant Pharmaceuticals Inc. (VRX) , Baytex Energy Corp. (BTE) and Lowe's Cos. (LOW) , among others that could be targeted on the grounds that some of their directors may be spread too thin or entrenched.
Speaking of boards. Our own Anders Keitz has found a recent study that shows that companies run by women perform better than the average company, most of whom of course are run by men, partly because women are often more careful in their projections and more likely to deliver what they promise.
Moral of the story, there is a lot wrong in the boardrooms of corporate America, and by hook or by crook shareholders and activist seem to now more than ever be willing to change that.
Amid all of the earnings this week, Apple Inc. (AAPL) , GoPro (GPRO) and Tesla Inc. (TSLA) , to name a few, there were some interesting stories to emerge. For Tesla, for instance, the company laid out ambitious plans on its earnings call Wednesday night, plans that included the construction of the "hyperloop" train as well as ramped production of its Model 3. But how the heck is Elon Musk going to pay for this?
Debt, of course, but how successful will a company that had a cash burn of $1.2 billion in the second quarter be in raising and then paying off said debt. Time will tell.
To learn about these stories and more check out the highlights from TheStreet and its sister publications, sign up for "In Case You Missed It" and other great free newsletters here.
Photo of the Day: Teva's Unravelling Reveals Rich History
Teva Pharmaceutical Industries Ltd. (TEVA) , the world's largest generic drug maker, turned the industry on its head on Thursday after substantially lowering its guidance. For those of you that don't know, Israel's Teva is a long-standing company with a rich history. Teva was founded in 1901 in Jerusalem as small wholesale drug business run by Chaim Salomon, Yitschak Elstein and Moshe Levin (pictured above, left to right). in 1935, Salomon, Levin and Elstein opened a small pharmaceutical plant called Assia (Aramaic for doctor) in Petah Tikva. Soon after the company would be merged with several others to form the modern day iteration (albeit a lot smaller) of Teva. Shares in Teva closed down about 24% apiece, the biggest decline for Teva in nearly 20 years. Read moreNot already In Case You Missed It receiving daily? Sign up here for this newsletter and other great free content from TheStreet
Meanwhile, here's more of what's trending on TheStreet:
- Pfizer's Poor Earnings Feed the Allergan Tie-Up Fire
- Here's How Much Money Warren Buffett Has Made on Apple Stock in 2017 Alone
- Tesla Headlines This Lineup of 12 Amazing New Cars for 2018
- Got a Mouth Like Mooch? Why Swearing at Work Could Get You Fired
- It Has Gotten So Sad for Costco and Sam's Club They Are Discounting Stuff on Groupon
- I Am a Millennial Who Just Went to Kmart for the First Time Ever and Couldn't Believe This Place