It also said Envestnet's management and board directors were overpaid and that the company should improve its corporate governance by putting all of its directors up for election every year. In its statement, Impactive Capital cited poor profit margins and bad capital allocation among the reasons for Envestnet's underperformance. Highlights of Jim’s tenure include building and leading one of the Industry’s largest impact investing programs, and developing Envestnet’s services for mission-based foundations and endowments.
Shares of Envestnet, which is currently valued at about $3.4 billion, have shed about 23% of their value in the past year compared to an 18% decline in the S&P 500 Index. Jim co-founded Envestnet and served as its Executive Vice President for the first 20 years of the firm’s growth and innovation. The fund remains open to discussions with Envestnet so that a proxy contest can be avoided, according to people familiar with the matter. Impactive Capital said it unveiled the challenge to Envestnet after its attempt to negotiate just one spot on the company's board for Wolfe was unsuccessful. That compares to $77.35 one year prior, but is up 48% from its 2022 nadir on October 12, when the stock closed at $42.93."Given the disappointing returns, margin underperformance, and questionable governance over which the current board has presided, we have concluded that change is required for all directors up for election at this year’s annual meeting," Taylor Wolfe said in a statement.Įnvestnet did not immediately respond to a request for comment. "Given the disappointing returns, margin underperformance and questionable governance over which the current Board has presided, we have concluded that change is required for all directors up for election at this year's annual meeting,” Wolfe said in the announcement.Įnvestnet stock closed at $63.56 per share Wednesday. The Diligent Boards solution meets or exceeds the standards of the most security-conscious IT departments. chief financial officer Michael Stanton, the company says. Impactive’s nominees include Wolfe, former UBS Americas head Thomas Naratil, Lane Holdings chair Wendy Lane and Diligent Corp. BERWYN, Pa., Ap/PRNewswire/ - Envestnet announces a partnership with Door, a leading global digital due diligence and risk management platform, to streamline and optimize its. In April, Envestnet uprooted its headquarters from Chicago, where it was founded in 1999, and replanted outside Philadelphia. It also appointed Stuart DePina as the new president and made appointments to the board of directors.ĭePina, who ran the Tamarac, Yodlee and tech service offerings at the firm for several years, left in June.Įnvestnet also lost its chief investment strategist, Tim Clift, in November, after he took over as chief investment officer at Newton, Massachusetts–based wealth-management firm Adviser Investments. The firm named company veteran William Crager as interim CEO and made the role permanent in April 2020. “Unfortunately, our efforts to collaborate privately were rebuffed, leaving us with no choice but to publicly express why change is required at Envestnet.”Įnvestnet has undergone several management changes in the wake of the death in a car crash of co-founder and chief executive officer Jud Bergman in October 2019. 15, 2022 (GLOBE NEWSWIRE) - Impactive Capital, LP, together with its affiliates, one of the largest shareholders of Envestnet, Inc. "Over the past 18 months, during which Impactive has sought to productively engage with the Board, we steadfastly expressed our view that Envestnet is a high-quality business with substantial opportunity for value creation, particularly given its dominant market position,” Lauren Taylor Wolfe, co-founder and managing partner of Impactive, said in the announcement.
Impactive also cited a “lack of commitment to good governance,” based on the company's response to the hedge fund's request for a single spot on the board. announces that Envestnet PMC has launched an environmental, social, and governance due diligence program to enhance its existing proprietary due diligence framework and. (NYSE: ENV), a leading provider of intelligent systems for wealth management and financial wellness, today announced the appointment of. That compares to the more than 113% average total return by its proxy peer group, the activist said.Įnvestnet’s board, according to Impactive, oversaw a number of “disappointing decisions” during the past five years that “resulted in shareholder value destruction,” including poor focus on return on investment and “apparent lack of expense discipline” among management. BERWYN, Pa., Ma/PRNewswire/ - Envestnet, Inc. Fintech giant Envestnet is facing a proxy contest as one of its investors seeks changes to the firm’s board of directors, citing company leaders' "disappointing" business calls.Īctivist hedge fund Impactive Capital put forward four Envestnet board candidates in light of the firm's underperformance.Įnvestnet stock has lagged the S&P 500 by 61% over the past five years while delivering a total return of just 6%, Impactive noted.
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