Qualcomm’s Paul Jacobs Steps Down Amid Broadcom Drama

Qualcomm long-time executive Paul Jacobs is taking a reduced role on the company's board of directors -- a move likely aimed at appeasing angry shareholders as the San Diego cellular giant tries to fend off a hostile takeover from Broadcom.

Jacobs, son of Qualcomm co-founder Irwin Jacobs and the company's chief executive from 2005-2014, will no longer serve as executive chairman of the company or chairman of its board of directors.

Jacobs will remain a member of the board.

Jeffrey Henderson, who joined Qualcomm's board in 2016 following activist shareholder Jana Partners efforts to change Qualcomm's corporate governance and structure, will become chairman. The executive chairman post will be eliminated.

Broadcom is trying to gain control of Qualcomm's board as part of a $117 billion hostile takeover bid. It has made Qualcomm's stock performance over the past four years the centerpiece of its campaign that it would do a better job of managing the company.

The argument appears to be resonating with Qualcomm shareholders.

Bloomberg has reported that Jacobs and Chief Executive Steve Mollenkopf were among the lowest vote getters in early stock holder balloting for the company's board.

The six Broadcom-nominated candidates were leading the vote count for Qualcomm's 11 member board. About half of shareholders have cast ballots.

Shareholders can still change their ballots right up until Qualcomm's annual shareholder meeting, currently scheduled for April 5. Many of Qualcomm's largest shareholders haven't voted yet, according to Bloomberg.

But the early returns highlight shareholder disapproval of Qualcomm's top executives, said Jim McGregor, principal analyst with Tirias Research.

"There is a lack of faith, especially among institutional investors, in Qualcomm's senior management," he said. "So either senior management needs to step up and be seen as visionaries in the industry ... or senior management needs to be changed."

Qualcomm shareholders were expected to wrap up voting on March 6. But the...

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Qualcomm’s Paul Jacobs Steps Down Amid Broadcom Drama

Qualcomm long-time executive Paul Jacobs is taking a reduced role on the company's board of directors -- a move likely aimed at appeasing angry shareholders as the San Diego cellular giant tries to fend off a hostile takeover from Broadcom.

Jacobs, son of Qualcomm co-founder Irwin Jacobs and the company's chief executive from 2005-2014, will no longer serve as executive chairman of the company or chairman of its board of directors.

Jacobs will remain a member of the board.

Jeffrey Henderson, who joined Qualcomm's board in 2016 following activist shareholder Jana Partners efforts to change Qualcomm's corporate governance and structure, will become chairman. The executive chairman post will be eliminated.

Broadcom is trying to gain control of Qualcomm's board as part of a $117 billion hostile takeover bid. It has made Qualcomm's stock performance over the past four years the centerpiece of its campaign that it would do a better job of managing the company.

The argument appears to be resonating with Qualcomm shareholders.

Bloomberg has reported that Jacobs and Chief Executive Steve Mollenkopf were among the lowest vote getters in early stock holder balloting for the company's board.

The six Broadcom-nominated candidates were leading the vote count for Qualcomm's 11 member board. About half of shareholders have cast ballots.

Shareholders can still change their ballots right up until Qualcomm's annual shareholder meeting, currently scheduled for April 5. Many of Qualcomm's largest shareholders haven't voted yet, according to Bloomberg.

But the early returns highlight shareholder disapproval of Qualcomm's top executives, said Jim McGregor, principal analyst with Tirias Research.

"There is a lack of faith, especially among institutional investors, in Qualcomm's senior management," he said. "So either senior management needs to step up and be seen as visionaries in the industry ... or senior management needs to be changed."

Qualcomm shareholders were expected to wrap up voting on March 6. But the...

Comments are closed.