Starboard Issues Presentation Highlighting Significant Issues at Autodesk and Opportunities for Meaningful Value Creation
Details the Urgent Need for Change Following Seven Years of Sustained Share Price Underperformance, Missed Targets, and Subpar Profitability Under CEO
Outlines Board’s Failure to Instill Accountability, Appropriate Budgeting Standards, and Compensation Programs that Are Aligned with Shareholder Outcomes
Notes Steps
Urges the Board to Take Action for the Benefit of Autodesk, Its Employees, and Its Shareholders
- Re-evaluating the CEO – Autodesk’s Board must objectively assess Mr. Anagnost’s performance as CEO and determine whether he is the best choice to continue to lead the Company.
- Expanding Operating Margins – Autodesk should right-size its cost structure to drive improved profitability. We believe Autodesk can improve operating margins by 1,000bps or more on a like-for-like basis.
- Improving Budgeting – Autodesk’s Board must ensure its budgets are adequately rigorous and embed significant operating leverage that results from realizing appropriate incremental margins.
- Overhauling Compensation Practices – Autodesk should ensure executive compensation is tied to shareholder value creation. The Company must end its practice of setting annual targets for long-term executive compensation plans, a practice which has enabled compensation targets to be set below the multi-year targets that have been presented to investors.
To see Starboard’s complete analysis and recommendations pertaining to Autodesk, review the full presentation here: https://www.starboardvalue.com/presentations.
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