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A trader works at the position that trades Parsley Energy Inc. and Allergan Plc., On the NYSE floor on April 5, 2016. REUTERS / Brendan McDermid
(Reuters) – Allergan Plc plans to elect an independent chairman of the board of directors, as of the next transition, the Botox maker said Friday, as the drug maker responded to calls from the hedge fund Appaloosa LP to separate the roles of President and CEO.
Appaloosa, led by billionaire David Tepper, has been lobbying Allergan since last year to separate roles, but the company said it would only do so when the person who currently occupies the positions is replaced.
Brent Saunders is currently in the positions, and Allergan said implementation of Appaloosa's recommendations would significantly disrupt the company's operations and impact its ability to continue with its current strategy.
Allergan also said here in a regulatory filing Friday to have formed a committee to oversee mergers, acquisitions, divestitures and other transactions.
The company has also appointed Thomas Freyman as Chairman of the Compensation Committee, replacing Catherine Klema, who will not be a candidate for re-election.
A spokesman for Tepper did not immediately respond to a request for comment.
In February, the company named the former general manager of drug maker Celgene, Robert Hugin, as director, saying the appointment reflected his commitment to "actively refresh the board."
Report of Saumya Sibi Joseph to Bengaluru; Edited by Shailesh Kuber and Sriraj Kalluvila
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