Williams Announces Board Departures
02 July 2016 - 2:40AM
Dow Jones News
Williams Cos. confirmed Friday that six of its 13 board members
resigned amid a dispute over who should lead the company in the
wake of a failed merger with Energy Transfer Equity LP.
Half the company's board, not including Alan Armstrong, the
chief executive, felt the company should choose a new CEO as it
prepares to set a new course. They argued that Mr. Armstrong, who
has been at the helm since 2011, was ill-suited to lead an
independent Williams.
The directors, not including Mr. Armstrong, were split evenly,
with six supporting him and six opposing him. The split left Mr.
Armstrong in place.
"The Board of Directors has thoroughly evaluated the company's
leadership structure and determined that Alan Armstrong is the
right chief executive officer for Williams as the company works to
continue enhancing stockholder value," Williams said in a news
release Friday.
Williams said it would "evaluate the appropriate size and
composition of the board going forward."
Shares of Williams fell 4.4% to $20.68 in midday trading in New
York.
Kathleen Cooper, a current director and member of the audit
committee member has been appointed chairman of the board,
replacing Frank MacInnis, who resigned his post at chairman.
The resignations were first reported Thursday by The Wall Street
Journal.
Williams is contemplating its future after having been embroiled
for months in a troubled merger with Energy Transfer. Last week, a
Delaware judge ruled that Energy Transfer could walk away from its
proposed takeover of Williams, which was once valued at $33
billion, and Energy Transfer notified Williams this week that it
wouldn't close the deal.
Williams is appealing the court's decision.
The six directors who fought against keeping Mr. Armstrong in
place included Keith Meister and Eric Mandelblatt, activist
investors who joined the board following a public campaign in
2014.
Board Chairman Frank MacInnis resigned for personal reasons,
though he was among those who disagreed with the decision to keep
Mr. Armstrong as CEO, the company said.
The other board members resigning include Laura Sugg, a former
executive at ConocoPhillips; Ralph Izzo, CEO of utility giant
Public Service Enterprise Group Inc.; and Steven Nance, president
of a privately held oil and gas company.
Liz Hoffman and David Benoit contributed to this article.
Write to Alison Sider at alison.sider@wsj.com
(END) Dow Jones Newswires
July 01, 2016 12:25 ET (16:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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