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Friday, August 15, 2014

Corporate founders battle boards to overturn forced exits, (AMEX: APP), (NYSE: BBY), (NASDAQ: LULU), (NYSE: MW)

From American Apparel Inc to Lululemon Athletica Inc, Men's Wearhouse Inc and Best Buy Co Inc, a series of boardroom battles across North America underscore how difficult it can be for companies to part ways with their founders.In each of these cases, the boards decided it was time for the founders to step down from their roles either as chief executive or chairman, but faced stiff resistance from the founders, some of whom used their substantial equity stakes to fight back.Corporate governance experts expect more such corporate dramas as shareholders are increasingly holding boards accountable for succession planning, investment returns and overall fiduciary duties. As a result, boards are asserting their authority more frequently, which can put them on collision courses with CEOs, including founders."Today's boards are increasingly feeling pressure to anticipate the CEO leadership needed to drive future success. This is especially true when the CEO is the founder of the company," said Jane Stevenson, head of the global CEO succession practice at Korn Ferry International.

American Apparel, Inc. is a vertically integrated manufacturer, distributor, and retailer of branded fashions basic apparel and accessories for women, men, children and babies. Shares of APP fell by 0.08% or $-7.0E-4/share to $0.89. In the past year, the shares have traded as low as $0.46 and as high as $1.82. On average, 5368010 shares of APP exchange hands on a given day and today's volume is recorded at 852888.

Best Buy Co., Inc. is a multinational, multichannel retailer of technology products, including tablets and computers, televisions, mobile phones, large and small appliances, entertainment products, digital imaging and related accessories. Shares of BBY fell by 1.15% or $-0.34/share to $29.19. In the past year, the shares have traded as low as $22.15 and as high as $44.66. On average, 4422910 shares of BBY exchange hands on a given day and today's volume is recorded at 3779550.

lululemon athletica inc. is a designer and retailer of technical athletic apparel operating primarily in North America and Australia. Shares of LULU fell by 0.98% or $-0.38/share to $38.37. In the past year, the shares have traded as low as $36.26 and as high as $77.75. On average, 3306210 shares of LULU exchange hands on a given day and today's volume is recorded at 1575925.

The Men's Wearhouse, Inc. is a specialty retailer of men's suits and a provider of tuxedo rental product in the United States and Canada. Shares of MW traded higher by 0.08% or $0.04/share to $51.20. In the past year, the shares have traded as low as $32.46 and as high as $59.10. On average, 773486 shares of MW exchange hands on a given day and today's volume is recorded at 429863.



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