Question

William Ackman is a hedge fund manager who owned a large share of J.C. Penney stock. He was also a member of the J.C. Penney board. He tried to get the CEO fired, but the board and top management said he breached his boardroom duties when he publicly disclosed information about the CEO search and financial condition of the company. He resigned from the board of directors. This is an example of a contentious relationship between:

Answer 1

Answer:

The capital market stakeholders and organisational stakeholders.

Explanation:

In this scenario William Ackman owned a large share of J.C. Penney stock, and also a member of the J.C. Penney board.

He had disclosed information about the company which was in breach of his boardroom duties.

There is a conflict for William in his roles as a capital market shareholder and a organisational stakeholders.

As a shareholder he has the freedom to disclose information about the company, but as a organisational stakeholders his obligation is to protect the company by not disclosing information about the CEO search and financial condition of the company.