News Mash-up: Boards of Directors

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Category: Business

Listening

Unlocking Word Meanings

Read the following words/expressions found in today’s article.

  1. unseat / ʌnˈsit / (v.) – to remove someone from power
    Example:

    People are really angry about the politician’s latest scandal and have launched a campaign to unseat him.


  2. reckon with (something) / ˈrɛk ən wɪθ / (phrasal v.) – to think about something so that one can prepare for it
    Example:

    The explorers hadn’t reckoned with the extreme cold of the Arctic, so they had to end their mission early.


  3. conglomerate / kənˈglɒm ər ɪt / (n.) – a business that has a huge network of companies
    Example:

    The conglomerate has a fast-food chain, a real estate company, and a clothing brand.


  4. bring to the fore / brɪŋ tʊ ðə fɔr / (idiom) – to highlight something
    Example:

    The complaints from customers were finally brought to the fore during the meeting.


  5. collusion / kəˈlu ʒən / (n.) – a secret agreement to work together for an illegal activity
    Example:

    Some people blame the product’s high price on collusion between the three companies that make it.


Article

Read the text below.

Exxon loses board seats to activist hedge fund


A tiny hedge fund dealt a major blow to Exxon Mobil Corp. on May 26, unseating at least two board members in a bid to force the company’s leadership to reckon with the risk of failing to adjust its business strategy to match global efforts to combat climate change.


The success by hedge fund Engine No. 1 in its showdown with Exxon shocked an energy industry struggling to address growing investor concerns about global warming.


The result will add to pressure on CEO Darren Woods, who campaigned to convince shareholders to shoot down the board challenge and argued the company was already advancing low-carbon projects and improving profits. (Reuters)


Toshiba shareholders vote out board chairman


In a rare move and a victory for activist investors, Toshiba Corp. shareholders voted down the reappointment of the board chairman at the annual shareholders meeting on June 25, after corporate governance issues at the industrial conglomerate were brought to the fore by a government collusion scandal.


Investors ousted Osamu Nagayama, who had expressed his intention to stay on. A recent probe by lawyers showed that the conglomerate had sought help from the government to influence the voting behavior of foreign shareholders. (The Japan Times)


These articles were provided by The Japan Times Alpha.


Viewpoint Discussion

Enjoy a discussion with your tutor.

Discussion A

  • The board members’ removals were an attempt to force Exxon’s leadership to match global efforts to combat climate change. Do you agree that executives and board members who don’t support climate change initiatives should be removed from their company? Why or why not? Discuss.
  • The success by the hedge fund in its showdown with Exxon shocked an energy industry struggling to address growing investor concerns about global warming. Do you think companies should always follow what their investors want? Why or why not? Discuss.

Discussion B

  • A recent probe by lawyers showed that Toshiba had sought help from the government to influence the voting behavior of foreign shareholders. Do you think it’s okay for the government to get involved with private companies and their shareholders? Why or why not? Discuss.
  • Toshiba investors ousted Nagayama, who had expressed his intention to stay on. In your opinion, is it hard for executives who are removed from office to find a new job, or do you think it’s easy for them to get hired again because of their knowledge and experience? Why? Discuss.