Hedge funds are increasingly flexing their muscles at Corporate America, and are squeezing significant governance and operating changes out of public companies. Just look at what has happened in recent weeks alone.
Boston-based K Capital agreed to call off its proxy fight when shareholders of OfficeMax met on May 9. In exchange, the $13.3 billion office products retailer agreed to appoint an additional independent director to the company’s board of directors at the end of June 2005 and to give “active consideration in good faith to a candidate or candidates” proposed by K Capital.
