Title: AOL's got mail ... from an unhappy investor

Authors: Matthew Shea

Addresses: West Chester University of Pennsylvania, BPMC 425, 50 Sharpless Street, West Chester, PA 19383, USA

Abstract: Herein is a decision case-study based on the 2012 proxy contest between AOL and one of its institutional investors, Starboard value (Starboard). At the heart of the dispute is AOL's digital media strategy championed by its new CEO and Board Chair, Tim Armstrong. Starboard asserts AOL's expensive and unimpressive digital media operations more than offset its relatively profitable internet service. Furthermore, Starboard suggests AOL's misguided strategy was spawned and nurtured by CEO duality, interlocking board directors, conflicts of interests, and misaligned executive compensation. The case requires students to evaluate strategic, behavioural, social, and political considerations in formulating AOL's response to Starboard's claims.

Keywords: governance; institutional shareholders; strategic control; case-study; proxy contest; CEO duality; executive compensation.

DOI: 10.1504/IJTCS.2023.134854

International Journal of Teaching and Case Studies, 2023 Vol.14 No.2, pp.117 - 147

Received: 11 May 2023
Accepted: 01 Jun 2023
Published online: 14 Nov 2023 *

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