Charter to nominate new TWC boardroom
Lucy was quoted in this Financial Times article:
Charter Communications is planning to nominate a slate of 13 new directors to Time Warner Cable in the coming days, according to people familiar with the matter, ratcheting up pressure in its $61bn takeover battle for the larger cable operator and prompting an examination of Time Warner Cableâ€™s current board make-up.
â€œYouâ€™d have to make a pretty strong case to propose an entirely new slate, but a proposal of fresh blood on the board is not out of order here,â€ said Lucy Marcus, a corporate governance expert. â€œWhy is independence important? To challenge and question and help with blue sky thinking. If you are too close to the company, it becomes very hard to do that.â€
Ms Marcus pointed to other concerns with the Time Warner Cable board, including that the chief executive is also the chairman, bestowing a huge amount of power with one person. She also noted the difficulties of having past chief executives as board members. While they add historical expertise, they can make it harder for a company to break with past operations and embark on new strategies.