Starboard Value, the US activist hedge fund firm founded in 2002 by Jeffrey Smith and Mark Mitchell, has nominated four people to the board of Alight as part of a push for change at the US benefits services provider, according to a report by Reuters.
The report cites a regulatory filing as revealing that Starboard, which has built a 7.8% stake in Alight has nominated three independent candidates – Keith Dorsey, Matthew Levin, Coretha Rushing, and one of its own Partners, Gavin Molinelli – as Directors.
According to the filing, Starboard expects three Directors to stand for election at the annual meeting and that “if that remains the case” it would “withdraw one of its nominees”.
On Wednesday, Alight, which helps businesses, including many Fortune 500 companies, manage health benefits for employees and offers payroll solutions, reported Q4 earnings below analyst expectations. The company also announced it had appointed external financial advisers to conduct “a strategic portfolio review” of the business.
Shares in Alight, which listed via a merger with a blank-cheque acquisition company three years in a $7.3bn deal, ended trading on Wednesday down 3% at $9.29, giving the company a market value of about $5bn.
