Starboard Issues Presentation Highlighting Significant Issues at Autodesk and Opportunities for Meaningful Value Creation
August 06 2024 - 7:30AM
Business Wire
Details the Urgent Need for Change Following
Seven Years of Sustained Share Price Underperformance, Missed
Targets, and Subpar Profitability Under CEO Andrew Anagnost
Outlines Board’s Failure to Instill
Accountability, Appropriate Budgeting Standards, and Compensation
Programs that Are Aligned with Shareholder Outcomes
Notes Steps Autodesk’s Board and Management
Should Take to Improve Accountability, Governance, Operational and
Financial Performance, and Capital Allocation
Urges the Board to Take Action for the
Benefit of Autodesk, Its Employees, and Its Shareholders
Starboard Value LP (together with its affiliates, “Starboard” or
“we”), a significant shareholder of Autodesk, Inc. (Nasdaq: ADSK)
(“Autodesk” or the “Company”), today released a presentation that
details the urgent need to improve the Company’s lagging
governance, operations, and financial performance. The
presentation, a similar version of which was previously delivered
to Autodesk’s Board of Directors (the “Board”), highlights that
shareholders have endured seven years of missed financial targets,
subpar profitability, and sustained share price underperformance
under Chief Executive Officer Andrew Anagnost. The Board has failed
to hold management accountable for this disappointing performance.
In light of these disappointing results, Starboard has urged the
Board to immediately focus on value-enhancing opportunities that
include:
- Re-evaluating the CEO – Autodesk’s Board must
objectively assess Mr. Anagnost’s performance as CEO and determine
whether he is the best choice to continue to lead the Company.
- Expanding Operating Margins – Autodesk should right-size
its cost structure to drive improved profitability. We believe
Autodesk can improve operating margins by 1,000bps or more on a
like-for-like basis.
- Improving Budgeting – Autodesk’s Board must ensure its
budgets are adequately rigorous and embed significant operating
leverage that results from realizing appropriate incremental
margins.
- Overhauling Compensation Practices – Autodesk should
ensure executive compensation is tied to shareholder value
creation. The Company must end its practice of setting annual
targets for long-term executive compensation plans, a practice
which has enabled compensation targets to be set below the
multi-year targets that have been presented to investors.
To see Starboard’s complete analysis and recommendations
pertaining to Autodesk, review the full presentation here:
https://www.starboardvalue.com/presentations.
About Starboard Value LP
Starboard Value LP is an investment adviser with a focused and
differentiated fundamental approach to investing in publicly traded
companies. Starboard invests in deeply undervalued companies and
actively engages with management teams and boards of directors to
identify and execute on opportunities to unlock value for the
benefit of all shareholders.
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version on businesswire.com: https://www.businesswire.com/news/home/20240806591325/en/
Investor: Peter Feld, (212) 201-4878 Gavin Molinelli, (212)
201-4828 www.starboardvalue.com
Media: Longacre Square Partners Greg Marose / Bela Kirpalani,
(646) 386-0091 starboard@longacresquare.com