Lion Point Capital Makes Headlines After Driving Board and Governance Changes at Ally Financial
The Wall Street Journal, Reuters and other media sources reported that Ally Financial, one of the nation’s largest auto loan providers committed to certain Board and corporate governance changes following engagement with Olshan client Lion Point Capital. Ally Financial agreed to appoint a new independent director in consultation with Lion Point Capital and other large shareholders, bringing the Board size to 12. Additionally, the Ally Financial Board amended the company’s bylaws to permit shareholders with a 25% stake to call a special meeting. Lion Point Capital further endorsed moves by Ally Financial to better align executive compensation with the company’s performance and announce new initiatives to drive value creation over the long term. The Wall Street Journal noted these changes add significant value to Ally Financial that, both Ally Financial and Lion Point Capital agree, is not reflected in the stock price. Steve Wolosky, Meagan Reda and Bachar Mahmoud represent Lion Point Capital in connection with its activist campaign at Ally Financial.