NEW YORK - In a move to influence the future direction of Algonquin Power & Utilities Corp. (NYSE: NYSE:AQN) (TSE: AQN), Starboard Value LP, the company's largest shareholder with a 9% stake, has nominated three candidates for election to Algonquin's Board of Directors at the Annual General Meeting scheduled for June 4, 2024.
The nominees, Brett Carter, Chris Lopez, and Rob Schriesheim, are presented as seasoned professionals with relevant experience in utility operations and financial transformations.
Starboard's action follows what it describes as a period of underperformance and value-destructive decisions by Algonquin's current board. Citing the company's failed Kentucky Power acquisition and a significant dividend cut due to balance sheet mismanagement, Starboard argues that these missteps have led to Algonquin's stock underperforming compared to its peers.
The investment firm's letter to Algonquin's Board emphasizes the need for directors who can provide expertise and a fresh perspective, especially as the company is in the midst of selecting a new CEO and considering the sale of its Renewable Energy Group (NASDAQ:REGI). Starboard asserts that its nominees are committed to ensuring a smooth execution of these processes without hindering any potential value-adding transactions.
The nominees bring a diverse range of experiences. Brett Carter has held leadership roles at Xcel Energy (NASDAQ:XEL) and Bank of America, Chris Lopez is currently an executive at Hydro One, and Rob Schriesheim has a background in restructuring and financial transactions, with board positions at companies like Houlihan Lokey (NYSE:HLI) and Skyworks Solutions (NASDAQ:SWKS).
Starboard remains open to a constructive resolution but has expressed urgency in renewing the board's leadership to oversee Algonquin's transformation. The information provided is based on a press release statement from Starboard Value LP.
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