Summary
- AT&T CEO Randall Stephenson stepped up to defend himself and AT&T against the challenges coming from dissident shareholder Elliott Management.
- Elliott Management seems to have some key arguments against the Stephenson succession plan, given the poor stock performance over the past twelve years.
- There are concerns that Mr. Stephenson is locked into a historical vision conglomerate and does not have a realistic view of what the "new" Modern Corporation should look like.
“AT&T Inc. (NYSE:T) Chief Executive Randall Stephenson defended his strategy and likely successor in his first public remarks since an activist hedge fund challenged the company to change direction.”
So writes Drew FitzGerald in the Wall Street Journal. She follows up with a little more detail:
“Speaking at a Goldman Sachs conference in New York, the telecom boss said newly named chief operating officer John Stankey was the right pick to make the Dallas company’s telecommunications, media and advertising businesses work together more effectively.”
This follows the challenge by Elliott Management who purchased shares of AT&T and who is now questioning the direction the executive leadership has taken the company.
In an earlier article, Ms. FitzGerald wrote,
“Plans for Mr. Stephenson’s triumphant exit, as early as next year, now threaten to turn into a months long fight over the direction of the $280 billion telecom company and a test of the board’s loyalty to his long-term vision.”
Seems as if the mediocre performance of Mr. Stephenson has caught up with the company. And, the thing that seems to have kicked Elliott Management into action was the move by Mr. Stephenson to elevate Mr. Stankey to the top spot after Mr. Stephenson departs the company.
