Pfizer's Boardroom Battle: A Closer Look

This: a big pharma company like Pfizer is in the spotlight, not for a new drug, but for some serious boardroom drama. Activist investor group Starboard Value has accused Pfizer of some heavy-handed tactics. They claim that Pfizer or its advisors threatened former CEO Ian Read and ex-CFO Frank D'Amelio with legal action if they didn't support current CEO Albert Bourla. Starboard's Jeff Smith said these threats also included clawing back past compensation and canceling unvested shares. He's calling for a special committee to investigate. The reason Read and D'Amelio backed Bourla, according to a source, was due to the risk of legal trouble.When Starboard first approached Read and D'Amelio, both seemed concerned about Pfizer's direction under Bourla and were willing to help Starboard. But after the threats, they publicly backed Bourla. Pfizer's shares took a hit, dropping about 2. 5% in Thursday's trading. Smith and Bourla are scheduled to meet next week. The agenda isn't clear, but it's known that Starboard has issues with Pfizer's cost structure and merger & acquisition strategies under Bourla's leadership. Both Starboard and Pfizer declined to comment on the situation.