AECOM, a leading international infrastructure company, has recently announced a governance agreement with Starboard Value LP, an investment firm. The agreement comes after Starboard Value LP had acquired a 4% stake in AECOM in December 2019.
The governance agreement includes the appointment of three new independent directors to AECOM`s Board of Directors, which will increase the size of the board from 11 to 14 members. The new directors will be selected in consultation with Starboard and will be appointed before the company`s 2020 Annual Meeting of Shareholders.
AECOM`s Chairman and CEO, Michael S. Burke, stated that the company is committed to enhancing shareholder value and that the governance agreement with Starboard reflects AECOM`s ongoing efforts to engage with its shareholders. He further added that the company is looking forward to welcoming the new independent directors to its board.
Starboard Value LP is known for its active involvement in the companies it invests in and has a record of working with companies to enhance shareholder value. The company has also expressed its support for AECOM`s long-term strategic plan and has said that it will work constructively with the company to maximize shareholder value.
The governance agreement with Starboard comes at a time when AECOM is undergoing a strategic transformation to focus on its core infrastructure businesses. The company recently announced that it will sell its Management Services business to a group of investors for $2.4 billion, which will enable AECOM to focus on its core businesses and improve its financial performance.
In conclusion, AECOM`s governance agreement with Starboard Value LP reflects the company`s commitment to enhancing shareholder value and its ongoing efforts to engage with its shareholders. The appointment of three new independent directors will bring new perspectives and expertise to the company`s board, which will help AECOM realize its long-term strategic goals.