How would Related Companies be able to removed Stephen Ross as Chairman?
August 7, 2019 4:33 PM   Subscribe

What would be the process to remove Stephen M. Ross as Chairman of the Board of Related Companies? Similar, but related, what would be the process to remove him as Chairman of the Board of Directors of Equinox Holdings, Inc. Thanks!
posted by davidstandaford to Work & Money (5 answers total)
You'd have to convince shareholders who represent a majority of the voting stock to introduce a motion to remove him (persuant to the bylaws of the organization), and then to vote to remove him. According to wikipedia, it looks like they have assets of $4 billion, with another $50 billion under management. They also appear to be privately held, so there is not necessarily a public record of who owns the majority of their shares, and it's not likely that you can force the current investors to sell in the same way that you can acquire shares on the public markets. As a private company, public opprobrium is unlikely to cause enough of a decline in the internal stock valuation to force the issue. Since he founded the company, it's unlikely that there are enough outstanding shares in the hands of dissatisfied investors that you'd be able to make this particular thing happen. If it were to happen, it would likely take years of manuvering, persuasion and massive financial resources- all things that would probably be better spent elsewhere.
posted by jenkinsEar at 5:05 PM on August 7, 2019

Is it possible that the Board itself would have the authority to remove the Chairman?
posted by davidstandaford at 5:10 PM on August 7, 2019

The board can make a recommendation to the shareholders, but changes like this usually take shareholder votes, and the number of votes you get are determined by the number of shares you own. He likely has enough shares to quash this. You'd have to persuade a whole lotta rich guys that running a fundraiser for Trump - who just dropped their corporate taxes by quite a bit- should somehow disqualify him from running a real estate company in Florida and New York. Good luck with that.
posted by jenkinsEar at 5:20 PM on August 7, 2019 [2 favorites]

Unlikely and probably meaningless, since he's the majority owner (pdf, 4th page, news article posted on their own website).
posted by acidic at 5:26 PM on August 7, 2019 [4 favorites]

Not going to happen. The shareholders elect the board. The board selects its chairman. He is indeed the majority owner of the The Related Companies, and that means he will remain.

Outsiders who don't like a particular person have no say in the matter. Those who really want to make this kind of change need to get the attention of institutional investors who hold large blocks of shares.
posted by megatherium at 4:08 AM on August 8, 2019

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