Autodesk (ADSK) shareholder Starboard Value said in an open letter Wednesday it plans to nominate directors at the company's annual meeting as it accused the company of underperformance and inadequate board oversight.
Starboard, a hedge fund with an ownership stake in the company of more than $500 million, said in the letter that Autodesk has a "long history of financial and operational underperformance" and that its share price has "meaningfully" underperformed in the long term, citing subpar profitability and missed Investor Day targets.
Due to the company board's "unwillingness to hold management accountable," the hedge fund said it believes a board change is necessary and that it plans to nominate a minority slate of director candidates at the company's annual meeting on June 18.
Starboard said it remains open to engaging with Autodesk.
Autodesk did not immediately reply to a request for comment from MT Newswires.
ADSK shares were 2% higher in recent premarket activity.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.