Cooperman Asks Why Ackman Launched ADP Proxy Fight

The transcript discusses Bill Ackman's attempt to gain board seats at ADP, critiquing his approach as aggressive and unnecessary. The speaker, a former ADP board member, highlights ADP's strong historical performance and suggests a more patient and collaborative approach. A comparison with Paychex is made, noting different business models. The speaker reflects on past investment decisions and advises Ackman to engage more constructively with ADP.

What is the main reason the speaker disapproves of Bill Ackman's approach to ADP?

• Ackman is not knowledgeable about ADP.

• Ackman is seeking too many board seats.

• Ackman's approach is aggressive and inappropriate.

• Ackman has a history of failed investments.

What financial achievement of ADP is highlighted by the speaker?

• A recent merger with a major competitor.

• A 10% annual growth rate since 1961.

• A significant drop in stock price.

• A 40% return on equity, more than twice the market average.

How does the speaker suggest Bill Ackman should have approached ADP?

• By selling his shares in ADP.

• By meeting privately and discussing his views with ADP.

• By launching a public campaign immediately.

• By investing in a different company.

What advice does the speaker give to Ackman regarding his timing with ADP?

• To launch a proxy fight immediately.

• To wait and engage with the company over the next year.

• To sell his shares and move on.

• To hire more advisors for a better strategy.

What potential issue does the speaker highlight about the proxy fight?

• It will guarantee Ackman a board seat.

• It will lead to a merger with Paychex.

• It will improve ADP's stock price.

• It could be very expensive and unnecessary.