Some Netflix, Inc.(NASDAQ:NFLX) investors were looking for a split. No, not a stock split. Rather, several large investors called for a split in the roles of chairman and CEO, titles currently held by Netflix founder Reed Hastings. California public pension fund Calpers and New York City Comptroller Scott Stringer were seeking an independent board chairman for the company in a vote which failed to pass on Monday.
Last year, nearly three quarters of the Netflix’s shareholders voted to split up the two positions. But, like last year, this year’s vote was nonbinding. An independent chairman is generally considered a corporate governance “best practice” though efforts at other companies – most notably, JP Morgan Chase – have also failed despite repeated attempts.
A split between Netflix’s chairman and CEO roles “will probably happen” eventually, said Steve Cortes, founder of Veracruz TJM, but he doesn’t see that as changing the ultimate price of the stock
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