Starboard Reiterates Call for Significant Change at Autodesk Following Reports of Senior Executives Intentionally Misleading Shareholders
Starboard Value LP, a significant shareholder of Autodesk (NASDAQ: ADSK), has reiterated its call for significant change at the company following reports of senior executives allegedly misleading shareholders. Bloomberg News uncovered internal documents showing Autodesk employees warned management about risks associated with multi-year, upfront billings, but executives reportedly ignored these warnings to meet financial targets. The Board's Audit Committee has acknowledged the use of misleading disclosures.
Starboard urges the Board to hold management accountable and evaluate whether CEO Andrew Anagnost is fit to lead Autodesk. The investment firm believes substantial change is needed for Autodesk to achieve its full potential, citing share price underperformance, poor financial results, and troubling disclosure and governance practices.
Starboard Value LP, un azionista di riferimento di Autodesk (NASDAQ: ADSK), ha ribadito la sua richiesta di cambiamenti significativi all'interno dell'azienda, a seguito di notizie secondo cui alcuni dirigenti senior avrebbero fuorviato gli azionisti. Bloomberg News ha scoperto documenti interni che mostrano come i dipendenti di Autodesk avessero avvertito la dirigenza riguardo ai rischi associati ai pagamenti anticipati su più anni, ma i dirigenti avrebbero ignorato questi avvertimenti per raggiungere gli obiettivi finanziari. Il Comitato di Audit del Consiglio ha riconosciuto l'uso di comunicazioni fuorvianti.
Starboard esorta il Consiglio a tenere i dirigenti responsabili e a valutare se il CEO Andrew Anagnost sia idoneo a guidare Autodesk. La società di investimento crede che siano necessari cambiamenti sostanziali affinché Autodesk possa esprimere il suo pieno potenziale, citando la scarsa performance del prezzo delle azioni, risultati finanziari deludenti e pratiche di divulgazione e governance preoccupanti.
Starboard Value LP, un accionista importante de Autodesk (NASDAQ: ADSK), ha reiterado su llamado a un cambio significativo en la empresa tras informes de que altos ejecutivos supuestamente engañaron a los accionistas. Bloomberg News descubrió documentos internos que muestran que empleados de Autodesk advirtieron a la gerencia sobre los riesgos asociados con la facturación por adelantado a varios años, pero los ejecutivos aparentemente ignoraron estas advertencias para cumplir con los objetivos financieros. El Comité de Auditoría de la Junta ha reconocido el uso de divulgaciones engañosas.
Starboard insta a la Junta a hacer que la gerencia rinda cuentas y a evaluar si el CEO Andrew Anagnost es apto para liderar Autodesk. La firma de inversión cree que se necesita un cambio sustancial para que Autodesk alcance su máximo potencial, citando el bajo rendimiento del precio de las acciones, pobres resultados financieros y preocupantes prácticas de divulgación y gobernanza.
Starboard Value LP는 Autodesk (NASDAQ: ADSK)의 주요 주주로서, 고위 경영진이 주주를 오도했다는 보도가 나온 후 회사의 중대한 변화에 대한 요구를 재확인했습니다. 블룸버그 뉴스는 Autodesk 직원들이 다년간의 선불 청구와 관련된 위험에 대해 경영진에 경고했으나, 경영진이 재무 목표를 달성하기 위해 이러한 경고를 무시했다고 밝혀진 내부 문서를 발견했습니다. 이사회 감사위원회는 잘못된 공시의 사용을 인정했습니다.
Starboard는 이사회가 경영진에 대한 책임을 묻고 CEO 앤드류 아나그노스트가 Autodesk를 이끌 적임자인지 평가할 것을 촉구하고 있습니다. 투자 회사는 Autodesk가 최대 잠재력을 달성하기 위해서는 상당한 변화가 필요하다고 믿으며, 주가의 저조한 실적, 열악한 재무 결과 및 우려되는 공시 및 거버넌스 관행을 문제로 지적하고 있습니다.
Starboard Value LP, un actionnaire important de Autodesk (NASDAQ: ADSK), a réaffirmé son appel à un changement significatif au sein de l'entreprise à la suite de rapports faisant état de dirigeants de haut niveau ayant supposément induit les actionnaires en erreur. Bloomberg News a découvert des documents internes montrant que des employés d'Autodesk avaient averti la direction des risques associés aux facturations anticipées sur plusieurs années, mais les dirigeants auraient ignoré ces avertissements afin d'atteindre les objectifs financiers. Le Comité d'Audit du Conseil a reconnu l'utilisation de divulgations trompeuses.
Starboard exhorte le Conseil à tenir la direction responsable et à évaluer si le PDG Andrew Anagnost est apte à diriger Autodesk. La société d'investissement estime qu'un changement substantiel est nécessaire pour qu'Autodesk puisse réaliser son plein potentiel, citant la sous-performance du prix des actions, de mauvais résultats financiers et des pratiques de divulgation et de gouvernance préoccupantes.
Starboard Value LP, ein bedeutender Aktionär von Autodesk (NASDAQ: ADSK), hat erneut seinen Aufruf zu erheblichen Veränderungen im Unternehmen bekräftigt, nachdem Berichte über hochrangige Führungskräfte aufgetaucht sind, die angeblich Aktionäre in die Irre geführt haben. Bloomberg News hat interne Dokumente aufgedeckt, aus denen hervorgeht, dass Autodesk-Mitarbeiter das Management vor den Risiken warnte, die mit mehrjährigen Vorauszahlungen verbunden sind, aber die Führungskräfte sollen diese Warnungen ignoriert haben, um finanzielle Ziele zu erreichen. Der Prüfungsausschuss des Vorstands hat die Verwendung irreführender Informationen anerkannt.
Starboard fordert den Vorstand auf, das Management zur Verantwortung zu ziehen und zu bewerten, ob CEO Andrew Anagnost geeignet ist, Autodesk zu führen. Die Investmentfirma ist der Meinung, dass erhebliche Veränderungen erforderlich sind, damit Autodesk sein volles Potenzial ausschöpfen kann, und weist auf die schwache Aktienkursentwicklung, schlechte Finanzdaten sowie besorgniserregende Offenlegungs- und Governance-Praktiken hin.
- Autodesk is described as a 'fantastic business' with significant potential for improvement
- Reports of senior executives allegedly misleading shareholders
- Executives reportedly ignored employee warnings about risky sales tactics
- Acknowledgment of misleading disclosures by the Board's Audit Committee
- Share price underperformance and poor financial results
- Troubling disclosure and governance practices
- Lack of consequences for executives involved in controversial practices
Insights
This statement from Starboard Value LP raises serious legal and governance concerns regarding Autodesk's management practices. The allegations of executives intentionally misleading shareholders and ignoring employee warnings about risky sales tactics could potentially lead to securities fraud investigations. The reported use of multi-year, upfront billings to meet financial targets, despite promises to stop this practice, may constitute material misrepresentation. If proven, these actions could result in significant legal liabilities for Autodesk and its executives. The Board's apparent lack of oversight and failure to hold management accountable further compounds these issues, potentially exposing them to shareholder lawsuits for breach of fiduciary duty. This situation underscores the critical importance of corporate governance and transparent financial reporting in maintaining investor trust and company value.
Starboard's statement highlights significant financial and operational concerns at Autodesk. The alleged use of controversial sales tactics, particularly multi-year, upfront billings, to meet financial targets is a red flag for investors. This practice can artificially inflate short-term results while potentially compromising long-term financial health. The reported share price underperformance and poor financial results suggest underlying issues with Autodesk's business model or execution. The lack of transparency and potential misrepresentation of financial practices could lead to a loss of investor confidence, impacting Autodesk's stock valuation and ability to raise capital in the future. Shareholders should closely scrutinize Autodesk's financial reports and management's forward-looking statements. The call for change from a significant shareholder like Starboard could lead to strategic shifts or management restructuring, potentially impacting Autodesk's future financial performance.
The situation at Autodesk reveals critical failures in corporate governance. The Board's apparent inability to provide effective oversight and hold management accountable for misleading disclosures and risky business practices is a major concern. The reported widespread knowledge of these practices within the company suggests a systemic governance problem. Starboard's call for evaluating CEO Andrew Anagnost's leadership is justified given these revelations. The Board's response to these allegations will be important in restoring shareholder trust. This case underscores the importance of robust internal controls, independent board oversight and transparent communication with shareholders. Investors should expect significant changes in Autodesk's governance structure, potentially including board refreshment and strengthened audit processes. The outcome of this situation could serve as a catalyst for broader corporate governance reforms in the tech industry.
“As we have stated in prior communications to our fellow shareholders and Autodesk’s Board, there is an urgent need for significant change at the Company due to its meaningful share price underperformance, poor financial results, and troubling disclosure and governance practices. This need has been underscored by recent public reports that spotlight the apparent lengths to which Autodesk’s leadership went in order to mislead shareholders while attempting to meet certain financial targets. These reports corroborate many of the concerns and issues raised in our publicly-issued presentation dated August 6, 2024.
On August 15, 2024, Bloomberg News reported it had uncovered internal documents that purportedly show Autodesk employees raised concerns to senior management about the risks associated with pursuing multi-year, upfront billings. Importantly, the documents apparently indicate that Autodesk executives ignored these warnings and continued to pursue multi-year, upfront billings in order to meet financial targets, while at the same time promising investors that the Company would stop this practice. According to the report, the documents also demonstrate that other senior executives beyond the Company’s former Chief Financial Officer (who now serves as Chief Strategy Officer) were aware of these decisions.
The Board’s Audit Committee investigation has already acknowledged Autodesk’s use of misleading disclosures. The recent reporting further confirms that senior executives relied on business practices that were not in Autodesk’s best interests and carried significant risks and did so in an attempt to manipulate results in order to meet financial targets.
We find the complete lack of consequences throughout this entire process deeply troubling, and we question the Board’s seeming abdication of its responsibilities.
We urge the Board to hold management accountable for its actions. The Board must objectively evaluate whether CEO Andrew Anagnost is the right individual to lead Autodesk in light of the recent reporting that makes it clear that these troubling practices were widely known inside the Company. Additionally, it will be incumbent upon shareholders to hold the Board accountable for its failure to provide proper oversight and protect shareholder interests.
Autodesk is a fantastic business with a significant opportunity to improve its financial results. This recent reporting only strengthens our belief that substantial change is needed at Autodesk in order for the Company to achieve its full potential.”
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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240822940255/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
Source: Starboard Value LP
FAQ
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