Billboard Insider answers your questions about Legion Partners, the 5% shareholder calling for a sale of Clear Channel Outdoor.

Who is Legion Partners?

Legion Partners is a  California investment fund with $334 million in assets under management.  The firm limits itself to 3-4 investments a year and 9-10 portfolio companies at any one time.  Chris Kiper is Chief Investment Officer.   Ted White is Managing Director.  Kiper worked for Shamrock Capital, the alternative investment fund owned by the Disney family.  Ted White has a background with the California Public Employees’ Retirement System (“Calpers”) which is also Legion’s lead investor.

What is Legion’s investment strategy?

Legion is a a value oriented long term activist investor.  Activist means that it may ask for a board seat and publicly advocates for changes in the interest of shareholders.  Legion has advocated for change at Guess?, Genesco, OneSpan, Kohls and Bed, Bath and Beyond.

Legion typically wants a board seat.

Here is what Chris Kiper told the Beyond the Boardroom podcast: We believe one of the biggest ways we can impact a company is replacing directors…Over the last two years we’ve place 19 directors across 9 portfolio companies…it’s individuals who are industry experts…most boards need upgrading.  The board members often times haven’t been in communication with shareholders.  Often when we ask board members when was the last time you talked to a shareholder you’ll see their eyes glaze over…and most board members do not own a lot of stock in the company that they are sitting on the board of.  They are way more focused on the fees they are earning as a board member…the boards tend to be made up of people who are friendly with the CEO…

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