When chairman and CEO of Blockbuster Inc. John Antioco took the helm 10 years ago, Blockbuster was at the top of its game. The DVD was the de facto standard and Blockbuster's franchise fluorished as the largest video and DVD rental company in the U.S.
But things change. Blockbuster is now under siege by new technologies and new formats of distributing movies as well as by corporate raider and biggest shareholder Carl Icahn. His influence has caused Antioco to announce he will step down by the end of 2007 and has agreed to receive a smaller 2006 bonus of $3.05 million, according to a Tuesday, March 20, MarketWatch report.
For the last two years, Icahn has been Antioco's biggest enemy for his gaudy compensation in a time when the company was struggling financially. Looking to clear house, Icahn has rallied for a new policy that all directors be elected annually. Such a move could allow Icahn and his allies "to complete a board takeover."
As far as who the new Blockbuster CEO will be, odds are it will be an Icahn ally.—Gerald Magpily
See story from MarketWatch
See story from The New York Times
See Carl Icahn Dealwatch
Continue reading below
