Dow Chemical, Third Point in Board Pact

The video discusses a recent development involving Dow Chemical and activist investor Dan Loeb. After a period of conflict, Loeb's firm, Third Point, has reached an agreement with Dow, allowing Loeb to appoint four directors to the board. This move aligns with Loeb's vision to split the company and increase shareholder value. The video also touches on Dow's defense of its integrated model, the impact of market conditions like oil prices, and the stability of CEO Andrew Liveris's position. Additionally, it covers the compensation structure for new board members.

What was the main outcome of the agreement between Dow Chemical and Dan Loeb's Third Point?

• Dan Loeb was appointed as CEO of Dow Chemical.

• Dow Chemical decided to merge with another company.

• Dan Loeb sold all his shares in Dow Chemical.

• Four directors were appointed to Dow's board by Dan Loeb.

How does Dow Chemical justify its integrated model?

• By suggesting it increases environmental impact.

• By stating it reduces the number of employees.

• By arguing it results in higher margin chemicals.

• By claiming it leads to higher production costs.

What market condition is mentioned as potentially beneficial for Dow Chemical?

• Higher consumer taxes.

• Increasing interest rates.

• Rising oil prices.

• Lower oil prices.

What is a concern regarding Andrew Liveris's position as CEO of Dow Chemical?

• Dan Loeb's belief that more could have been achieved.

• His lack of experience in the chemical industry.

• His decision to relocate the company's headquarters.

• The company's poor stock performance under his leadership.

How is the compensation for new board members Steve Miller and Ray Milkovic structured?

• They are compensated with stock options in a different company.

• They receive bonuses based on company profits.

• They are paid based on the value of 400,000 shares of Dow Chemical.

• They receive a fixed annual salary.