Catalent Inc (CTLT) has disclosed a new risk, in the Share Price & Shareholder Rights category.
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Catalent Inc. faces a business risk as the interests of its executive officers and directors in the upcoming Merger may not align with those of its stockholders. The divergence stems from potential personal benefits for executives, such as accelerated vesting of equity awards and severance payments, which could influence their decision-making. This discrepancy raises concerns about the impartiality of the executives’ support for the Merger, potentially skewing the process in favor of their interests over the stockholders. Details surrounding these conflicts of interest will be disclosed in the proxy statement to be filed with the SEC.
Overall, Wall Street has a Hold consensus rating on CTLT stock based on 1 Buy, 1 Sell and 8 Holds.
To learn more about Catalent Inc’s risk factors, click here.