The Value of Activist Board Membership
The following Chart has been prepared by Icahn Enterprises and responds to those that question the efficacy of including activists’ designees on public company Boards of Directors.
From November 15, 2008 to November 15, 2013 (a 5 year period) Icahn designees have joined the Boards of the 20 public companies listed in the Chart. As reflected in the Chart, a person that invested in each company on the date that the Icahn designee joined the Board, and that sold on the date that the Icahn designee left the Board (or continued to hold through November 15, 2013 if the designee did not leave the Board) would have obtained an annualized return of 28%. A 28% annualized return reflects favorably relative to the various metrics set forth in the Chart for comparison purposes.
Date | S&P 500 | Dow Jones | Russell | |||||||||||||||||||||||||||||||||||||
Exited | Hypothetical | Berkshire | Leucadia | Loews Corp | annualized | annualized | annualized | Hedge Fund | ||||||||||||||||||||||||||||||||
Board (or | Investor | Hathaway Inc | National Corp | annualized | return | return | return | Index | ||||||||||||||||||||||||||||||||
11/15/2013 | annualized | annualized | annualized | return | during | during | during | annualized | ||||||||||||||||||||||||||||||||
Date Joined | if still on | Return during | return during | return during | during | board | board | board | return during | |||||||||||||||||||||||||||||||
# | Company Name | Board | board) | board tenure | board tenure | board tenure | board tenure | tenure | tenure | tenure | board tenure | |||||||||||||||||||||||||||||
1 | Amyln Pharmaceuticals Inc | 6/9/2009 | 8/8/2012 | 38 | % | 11 | % | 0 | % | 13 | % | 16 | % | 17 | % | 16 | % | 1 | % | |||||||||||||||||||||
2 | Biogen Idec Inc | 6/10/2009 | 11/15/2013 | 42 | % | 16 | % | 6 | % | 14 | % | 18 | % | 18 | % | 20 | % | 3 | % | |||||||||||||||||||||
3 | Chesapeake Energy Corp | 6/21/2012 | 11/15/2013 | 31 | % | 29 | % | 29 | % | 15 | % | 27 | % | 22 | % | 33 | % | 6 | % | |||||||||||||||||||||
4 | CIT Group Inc | 12/18/2009 | 5/10/2011 | 38 | % | 15 | % | 42 | % | 12 | % | 18 | % | 19 | % | 29 | % | 4 | % | |||||||||||||||||||||
5 | Dynegy Inc | 3/9/2011 | 10/1/2012 | -81 | % | 2 | % | -21 | % | -1 | % | 8 | % | 10 | % | 3 | % | -5 | % | |||||||||||||||||||||
6 | Enzon Pharmaceuticals Inc | 5/21/2009 | 11/15/2013 | -12 | % | 16 | % | 10 | % | 16 | % | 19 | % | 19 | % | 22 | % | 3 | % | |||||||||||||||||||||
7 | Forest Laboratories Inc. | 8/5/2012 | 11/15/2013 | 40 | % | 27 | % | 30 | % | 15 | % | 25 | % | 20 | % | 33 | % | 6 | % | |||||||||||||||||||||
8 | Genzyme Corp | 6/16/2010 | 4/11/2011 | 61 | % | 7 | % | 96 | % | 36 | % | 26 | % | 27 | % | 33 | % | 8 | % | |||||||||||||||||||||
9 | Herbalife International Ltd | 4/25/2013 | 11/15/2013 | 200 | % | 15 | % | -11 | % | 13 | % | 28 | % | 19 | % | 38 | % | 3 | % | |||||||||||||||||||||
10 | Mentor Graphics Corp | 5/18/2011 | 11/15/2013 | 18 | % | 16 | % | -8 | % | 6 | % | 15 | % | 13 | % | 14 | % | 0 | % | |||||||||||||||||||||
11 | MGM Studios | 4/25/2012 | 8/15/2012 | 96 | % | 21 | % | -33 | % | -1 | % | 6 | % | 5 | % | -2 | % | -2 | % | |||||||||||||||||||||
12 | Motorola Mobility Inc | 1/3/2011 | 5/22/2012 | 22 | % | 0 | % | -22 | % | 0 | % | 5 | % | 8 | % | -2 | % | -6 | % | |||||||||||||||||||||
13 | Motorola Solutions Inc | 1/4/2011 | 3/1/2012 | 23 | % | -1 | % | -3 | % | 1 | % | 9 | % | 13 | % | 5 | % | -5 | % | |||||||||||||||||||||
14 | Navistar International Corp | 10/8/2012 | 11/15/2013 | 66 | % | 26 | % | 26 | % | 13 | % | 24 | % | 19 | % | 31 | % | 6 | % | |||||||||||||||||||||
15 | Nuance Communications, Inc | 10/7/2013 | 11/15/2013 | -70 | % | 30 | % | 36 | % | 27 | % | 98 | % | 91 | % | 56 | % | 10 | % | |||||||||||||||||||||
16 | Take-Two Interactive Software Inc. | 4/15/2010 | 11/15/2013 | 15 | % | 11 | % | 2 | % | 7 | % | 14 | % | 14 | % | 14 | % | 1 | % | |||||||||||||||||||||
17 | The Hain Celestial Group Inc | 7/7/2010 | 11/15/2013 | 53 | % | 12 | % | 14 | % | 11 | % | 20 | % | 18 | % | 21 | % | 2 | % | |||||||||||||||||||||
18 | Transocean Ltd | 5/17/2013 | 11/15/2013 | 8 | % | 6 | % | -21 | % | 8 | % | 19 | % | 11 | % | 27 | % | 1 | % | |||||||||||||||||||||
19 | Voltari Corp | 6/17/2010 | 11/15/2013 | -59 | % | 12 | % | 10 | % | 11 | % | 17 | % | 16 | % | 18 | % | 1 | % | |||||||||||||||||||||
20 | WebMD Health Corp | 7/24/2012 | 8/5/2013 | 124 | % | 40 | % | 32 | % | 15 | % | 29 | % | 26 | % | 39 | % | 7 | % | |||||||||||||||||||||
Total | 28 | % | 14 | % | 9 | % | 11 | % | 18 | % | 17 | % | 19 | % | 2 | % |
Returns assume equal weighting in each investment.
Source of return data = Bloomberg Total Return function including dividends reinvested.
The Chart does not reflect the actual results of IEP’s Investment segment, nor is it necessarily indicative of future results of IEP’s Investment segment.