Starboard Value Issues Letter to Pfizer’s Board of Directors
Starboard Value LP, a significant shareholder of Pfizer Inc. (NYSE: PFE), has issued a letter to the company's Board of Directors expressing deep concern over recent events. The letter alleges that Pfizer representatives have threatened former executives Ian Read and Frank D'Amelio with litigation, compensation clawbacks, and cancellation of unvested stock units unless they publicly support current CEO Dr. Albert Bourla.
Starboard views this as coercive conduct and a breach of fiduciary duty. They are calling for the Board to establish a special committee to investigate and hold responsible parties accountable. Despite these concerns, Starboard remains committed to constructive engagement with Pfizer and looks forward to an upcoming meeting to discuss the company's path forward.
Starboard Value LP, un importante azionista di Pfizer Inc. (NYSE: PFE), ha inviato una lettera al Consiglio di Amministrazione dell'azienda esprimendo profonda preoccupazione per gli eventi recenti. Nella lettera si afferma che i rappresentanti di Pfizer hanno minacciato i former executive Ian Read e Frank D'Amelio con azioni legali, recupero di compensi e cancellazione delle unità azionarie non maturate, a meno che non sostengano pubblicamente l'attuale CEO, Dr. Albert Bourla.
Starboard considera questo un comportamento coercitivo e una violazione del dovere fiduciario. Chiedono al Consiglio di istituire un comitato speciale per indagare e rendere responsabili i colpevoli. Nonostante queste preoccupazioni, Starboard rimane impegnata in un dialogo costruttivo con Pfizer e attende con interesse un prossimo incontro per discutere il futuro dell'azienda.
Starboard Value LP, un accionista significativo de Pfizer Inc. (NYSE: PFE), ha emitido una carta a la Junta Directiva de la compañía expresando una profunda preocupación por los eventos recientes. La carta alega que los representantes de Pfizer han amenazado a los exejecutivos Ian Read y Frank D'Amelio con litigios, recuperación de compensaciones y cancelación de unidades de acciones no devengadas, a menos que apoyen públicamente al actual CEO, Dr. Albert Bourla.
Starboard considera esto como un comportamiento coercitivo y una violación del deber fiduciario. Están pidiendo al Consejo que establezca un comité especial para investigar y responsabilizar a los culpables. A pesar de estas preocupaciones, Starboard sigue comprometido con un diálogo constructivo con Pfizer y espera con interés una próxima reunión para discutir el futuro de la empresa.
Starboard Value LP는 Pfizer Inc. (NYSE: PFE)의 중요한 주주로서 회사 이사회에 최근 사건에 대한 깊은 우려를 표명하는 편지를 보냈습니다. 편지에는 Pfizer의 대표들이 전직 경영진 Ian Read와 Frank D'Amelio에게 소송, 보상 환수 및 미분배 주식 단위의 취소를 위협했다는 내용이 담겨 있습니다. 이 조치들은 그들이 현재 CEO인 Dr. Albert Bourla를 공개적으로 지지하지 않으면 이루어질 것이라고 합니다.
Starboard는 이를 강제적인 행위와 신탁 의무의 위반으로 보고 있습니다. 그들은 이사회가 특별 위원회를 구성하여 책임자들을 조사하고 책임을 물을 것을 요구하고 있습니다. 이러한 우려에도 불구하고 Starboard는 Pfizer와의 건설적인 대화에 전념하고 있으며, 회사의 향후 방향에 대해 논의하기 위한 다가오는 회의를 고대하고 있습니다.
Starboard Value LP, un actionnaire important de Pfizer Inc. (NYSE: PFE), a envoyé une lettre au conseil d'administration de l'entreprise exprimant de profondes inquiétudes concernant les événements récents. La lettre allègue que les représentants de Pfizer ont menacé les anciens dirigeants Ian Read et Frank D'Amelio de poursuites judiciaires, de récupérations de rémunérations et d'annulations d'unités d'actions non acquises, à moins qu'ils ne soutiennent publiquement l'actuel PDG, Dr. Albert Bourla.
Starboard considère cela comme un comportement coercitif et une violation du devoir fiduciaire. Ils demandent au conseil d'administration de créer un comité spécial pour enquêter et tenir les responsables responsables. Malgré ces préoccupations, Starboard demeure engagé dans un dialogue constructif avec Pfizer et attend avec impatience une prochaine réunion pour discuter de l'avenir de l'entreprise.
Starboard Value LP, ein bedeutender Aktionär von Pfizer Inc. (NYSE: PFE), hat einen Brief an den Vorstand des Unternehmens geschickt, in dem tiefe Bedenken über die jüngsten Ereignisse geäußert werden. Im Brief wird behauptet, dass Vertreter von Pfizer frühere Führungskräfte Ian Read und Frank D'Amelio mit rechtlichen Schritten, Rückforderungen von Vergütung und Stornierung unverfallbarer Aktieneinheiten bedroht haben, es sei denn, sie unterstützen öffentlich den aktuellen CEO Dr. Albert Bourla.
Starboard betrachtet dies als zwanghaftes Verhalten und einen Verstoß gegen die Treuepflicht. Sie fordern den Vorstand auf, ein Sonderkomitee einzurichten, um Untersuchungen durchzuführen und die Verantwortlichen zur Rechenschaft zu ziehen. Trotz dieser Bedenken bleibt Starboard dem konstruktiven Dialog mit Pfizer verpflichtet und freut sich auf ein bevorstehendes Treffen, um über den zukünftigen Weg des Unternehmens zu diskutieren.
- Starboard Value LP, a significant shareholder, is actively engaging with Pfizer's management to create value
- Starboard is scheduled to meet with Pfizer's CEO and board members to present their views and discuss strategies
- Allegations of coercive conduct by Pfizer representatives towards former executives
- Potential breach of fiduciary duty by Pfizer's management
- Concerns expressed by former executives about the trajectory of Pfizer's business
- Risk of costly litigation and reputational damage due to alleged threats
***
October 10, 2024
Pfizer Inc.
66 Hudson Boulevard East
10001
Attn: Board of Directors
CC: Doug Lankler, General Counsel
Dear Members of the Board,
As you know, Starboard Value LP (together with its affiliates, “Starboard” or “we”) is a large investor in Pfizer Inc. (“Pfizer” or the “Company”). As a significant shareholder, we care deeply about the Company and are committed to working constructively with management and the Board of Directors (the “Board”) in order to create value for the benefit of all shareholders. As you are aware, we are scheduled to meet with Dr. Bourla, Mr. Narayen, and possibly other members of the Board on October 16, 2024, to present our views and discuss the best path forward for Pfizer.
As has been reported in recent press articles, Starboard approached the Company’s former Chief Executive Officer Ian Read and former Chief Financial Officer Frank D’Amelio during our diligence process. During these meetings both Mr. Read and Mr. D’Amelio expressed concerns about the trajectory of the business. As former Company executives and significant individual shareholders with a deep appreciation for Pfizer’s customers, employees, and shareholders, Mr. Read and Mr. D’Amelio shared our desire to see Pfizer pursue a better path forward. Therefore, they offered to be of assistance. Let us be abundantly clear, this is the extent of our engagement with Mr. Read and Mr. D’Amelio and is entirely consistent with the public reporting to date.
Unfortunately, recent events have been brought to our attention. Given the gravity of these events, and our optimistic belief that the Board may not have been consulted, we believe it important to share them in writing with the Board. Specifically, we understand that people within Pfizer and/or their representatives have contacted Mr. Read and Mr. D’Amelio and purportedly threatened to commence costly litigation against them, claw back prior compensation, and cancel unvested performance stock units, unless they publicly release a statement supporting the current Chief Executive Officer, Dr. Albert Bourla.
While we cannot be certain that the Board did not authorize this behavior, we sincerely hope that all, or at least some, members of the Board were wholly unaware of this coercive conduct, which in our view constitutes a clear breach of fiduciary duty. Therefore, we ask the Board, as representatives of all shareholders, to immediately establish a special committee of Board members with clean hands to investigate the extent of this behavior, determine who approved and executed such conduct, and promptly hold the responsible parties accountable. To be clear, we believe this behavior is highly inappropriate, flagrantly unethical, and a significant breach of fiduciary obligations.
While we are deeply troubled by this unfortunate series of events, we do hope to have a constructive engagement with the Company and look forward to meeting in-person this following Wednesday as scheduled.
Sincerely,
Jeffrey C. Smith
Managing Member
Starboard Value
***
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/20241010407850/en/
Investor Contacts:
Peter Feld, (212) 201-4878
Gavin Molinelli, (212) 201-4828
www.starboardvalue.com
Media Contacts:
Longacre Square Partners
Greg Marose / Charlotte Kiaie, (646) 386-0091
starboard@longacresquare.com
Source: Starboard Value LP
FAQ
What allegations has Starboard Value made against Pfizer (PFE)?
What action is Starboard Value requesting from Pfizer's (PFE) Board of Directors?
When is Starboard Value scheduled to meet with Pfizer's (PFE) management?
What concerns did former Pfizer (PFE) executives express to Starboard Value?
