Corteva enters into an agreement with Starboard Value
Key summary: In Jan 2021, Starboard nominated 8 directors to Corteva. In March 2021, Starboard reached agreement with the company and thereby three candidates of Starboard were added to the Board.M.Cap: $31 billion | Corteva, Inc. operates in the agriculture business. It operates through two segments, Seed and Crop Protection.
SUMMARY
Valuation Insight
On October 8, 2020, Starboard issued a presentation at the Active-Passive Investor Summit on Corteva. It stated its belief that the company could have created substantial value for shareholders through improved operational execution and lead to an improved valuation multiple. It opines that Corteva could yield $47 to $55 per share.
On January 21, 2021, Starboard issued a press release and delivered a letter to the Chairman of the Board nominating eight director candidates for election at the 2021 Annual Meeting. It its letter, Starboard stated its belief that Corteva’s operating performance could have been meaningfully improved and significant opportunities exist within the control of management and the Board of Directors (the “Board”) to unlock substantial value for all shareholders. It stated that a litany of missed promises and unforced errors have furthered Starboard's conviction that current leadership is ill-equipped to maximize the value of Corteva’s assets.
On March 19, 2021, the company announced an agreement with Starboard Value and pursuant to it, three new independent directors proposed by Starboard—David C. Everitt, Janet P. Giesselman, and Kerry J. Preete— joined Corteva’s Board of Directors ffective immediately.
In an October 2021 Active-Passive Investor Summit, Starboard issued a presentation stating that the company's new CEO has a significant opportunity to improve operational execution, close the margin gap to peers, and realize a further improvement in the Company’s valuation multiple.