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  "documentTitle": "Darden Restaurants, Inc. (DRI)",
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  "authorName": "Starboard Value",
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  "presentationDate": "2014-09-11 00:00:00",
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  "notes": "This is an activist investor deck slide attacking the incumbent board.",
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      "text": "3 of the 4 incumbent nominees are from the Compensation Committee!",
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      "text": "Glass Lewis has given Darden a grade of “D” in executive compensation. In its 2013 Proxy Paper, Glass Lewis notes: “The Company has been deficient in linking executive pay to corporate performance...[and] Shareholders should be concerned with this disconnect”",
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      "text": "The board has not provided sufficient oversight to the CEO. In a May 13, 2014 article, the New York Post chronicled how Darden’s board permitted CEO Clarence Otis to attend at least 76 board meetings last year for companies other than Darden.",
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      "text": "Even excluding travel days, this implies that the Board allowed Darden’s CEO to miss approximately 30% of working days last year, during one of the most challenging years in Darden’s history.",
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      "text": "Darden maintains shareholder-unfriendly corporate governance provisions: Action by written consent prohibited; 50% threshold for special meetings; 66 2/3% supermajority for removal; 15% poison pill.",
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      "text": "As a result, during Mr. Otis’ tenure, Darden has spent $6.7 billion on capital expenditures and acquisitions to fund revenue and EPS growth – more than the current market cap of the Company – while returns on capital and shareholder value have deteriorated significantly.",
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      "text": "For more than 10 years, the Board chose to compensate Mr. Otis and his team on the basis of revenue growth and total EPS growth, incentivizing management to overspend for growth with no regard for shareholder value.",
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      "text": "Darden’s governance has been widely considered appalling, and that was before the Board’s egregious violation of shareholder trust in ignoring a clear directive from shareholders calling for a special meeting to be held as a forum for shareholder input and selling Red Lobster without a shareholder vote in what we believe to be a highly value destructive transaction",
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      "text": "“The Company has been deficient in linking executive pay to corporate performance…[and] Shareholders should be concerned with this disconnect” — Glass Lewis, 2013 Proxy Paper.",
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