Box Rejects Starboard Criticism, Board Nominees; Shares Rise Midday
01:14 PM EDT, 05/10/2021 (MT Newswires) -- Box Inc. (BOX), a cloud content management platform, has recommended its shareholders reject Starboard Value LP's slate of four candidates it nominated to the company's board of directors.
Starboard has complained that Box Inc.'s "performance has not sufficiently improved" since it first invested in the company over two years ago and that it "is still deeply undervalued versus its peers."
However, Box's board of directors said it does not believe the changes proposed by Starboard are warranted or in the best interests of shareholders. It also said has been responsive to shareholder feedback, including suggestions from Starboard, and that Starboard's statements do not accurately depict the company's progress.
The board cited as proof of its success an 11% yearly increase in revenue, an 11% annual increase in Non-GAAP operating margin and a 17% increase in share price so far this year.
Shares of Box, Inc. are up more than 4% in midday trading.
Price: 22.09, Change: +0.93, Percent Change: +4.40