The activist investor Starboard has acquired a stake in Symantec and is seeking to place five of its representatives on the cybersecurity company's 11-person board. Symantec's share price has nearly halved in the past year after it announced accounting problems, and Starboard thinks it can lead a turnaround at the group.
Starboard believes its board nominees could help remedy any financial-reporting issues and improve operations, much like it recently did at Marvell Technology, according to a report from the Wall Street Journal. Its proposed slate includes a former chairman of antivirus company AVG Technologies, a former Intuit executive and three people it put on Marvell’s board, including Starboard research head Peter Feld.
Symantec confirmed it had received the proposal from Starboard and its nominations committee was considering the directors. The company has been in talks with Starboard the "last several weeks" and plans to continue the discussions, Symantec said in a statement, noting that it values the input from shareholders.
Board nominations and an agenda for the company's annual meeting have not yet been decided. Symantec said it wants to complete its internal investigation and file its final financial reports with the SEC before deciding on the AGM's agenda.
Symantec's other shareholders include Silver Lake and Bain Capital, and it has also attracted investment from Elliott Management in the past.
