EMC Corporation (NYSE: EMC) company signed an agreement with Elliott Management by adding two directors to the board. Today, the company announced the appointment of José E. Almeida and Donald J. Carty as members of the Board effective immediately.
Elliott has been pushing EMC Corporation spun off its affiliated companies, namely VMware, Inc. (NYSE: VMW). According to the activist hedge funds, EMC and VMware have grown and competition.
The activist hedge funds also believed that the commercial structure EMC actions colleagues and market differ concealed tremendous value and flattering frames.Mr all the time. Almeida is the current President and CEO of Covidien. Currently a member of the Board of State Stree Corporation.
Mr. Carty is a former Chairman and CEO of AMR Corporation (NYSE: AAR) and American Airlines. He is currently Chairman of Virgin America Airlines and Director of the Canadian National Railway Company and Talisman Energy.
EMC Chairman and CEO Joe Tucci, stressed that both leaders are very experienced leaders of major global corporations. He believes he can bring additional depth and insight to the Board of Directors of the Company.
Elliott’s Comment Regarding EMC’s Appointments
In a statement, portfolio manager Elliot, Jesse Cohn said Mr. Almeida and Mr. Carty are both strong and experienced managers. According to him, the company believes that both executives is invaluable to the board of EMC in the current review of strategic management perspective.Elliott agreed to certain rules and stop voting limited to September 2015 in relation to the decision of the board EMC two new activist hedge funds added directors.The also agreed to vote on the proposed list of the directors during the general meeting of 2015 years .The company shareholders activist hedge fund has 2.2% of the outstanding shares of EMC.
EMC And Elliott Collaborated in Selecting New Directors
According to EMC, its corporate governance and nominating committee identified Mr. Almeida and Mr. Carty through its outreach process including independent search efforts and consideration of candidates recommended by shareholders.EMC and Elliott collaborated in the review and selection of candidates. The EMC board selected Mr. Almeida and Mr. Carty after conducting a thorough evaluation on the qualifications of candidates.