In 2005, Relational Investors, a registered investment advisor, has launched a proxy contest to get two seats on the board of directors of Sovereign Bancorp. Relational accused Sovereign operational mismanagement and poor corporate governance, which is a breach of fiduciary responsibility of the board of directors of the Company Director. Relational argued that the board was in recovery for investors. Later, the emperor came in controversial tripartite agreement with Banco Santander Central Hispano of Spain, who thwarted efforts by diluting the relational position of his property and giving Santander board seats and veto power to remove the Director General of the Sovereign. The tactics used by relational investors to try to disrupt the deal Santander and tactics used by Sovereign Bancorp, to protect him. "Hide
by David F. Larcker, Brian Tayan Source: Stanford Graduate School of Business 22 pages. Publication date: April 12, 2007. Prod. #: CG06-PDF-ENG
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