Envestnet Names Three Board Directors, Avoids Proxy Fight with Activist Investor Impactive Capital
Envestnet, a technology focused registered investment advisor, named three people to its board of directors to settle a proxy fight with activist investor Impactive Capital, which had been urging new measures to improve the company’s performance.
Lauren Taylor Wolfe, Impactive Capital’s co-founder and managing partner, and Wendy Lane, chair of private equity firm Lane Holdings and a member of the Verisk Board of Directors, joined Envestnet’s board on March 27. Barbara Turner, former CEO of Ohio National Financial Services, also joined the board, effective March 22.
“These appointments were informed by Envestnet’s ongoing dialogue with shareholders as we continue to execute on our strategic plan to deliver enhanced value to shareholders,” James Fox, chairman of Envestnet’s board of directors, said.
In November, Impactive, a $2.8 billion hedge fund that owned a 7.5% stake in Berwyn, PA-based Envestnet, published an open letter expressing dissatisfaction with Envestnet’s stock price which had underperformed the S&P 500 by 61%. Impactive initially asked for a single board seat before bumping it up to four seats in January.
“We look forward to bringing our fresh perspectives and ownership mentality to the Board, and to working alongside our fellow directors to create significant value for shareholders,” added Taylor Wolfe.