Former Pfizer CEO Ian Reid gestures while speaking during a panel session at the World Economic Forum in Davos, Switzerland, on January 17, 2017.
Simon Dawson | Bloomberg | Getty Images
Activist Starboard Ballue faces charges pfizer An initial turnaround campaign by the pharmaceutical giant’s investors threatened to sue the company’s former chief executive officer and chief financial officer in an effort to break ground.
In a letter to Pfizer’s board on Thursday, Starboard managing member Jeff Smith said in a letter to Pfizer’s board of directors that the company or its advisers, including former CEO Ian Reid and former chief financial officer Frank D’Amelio, It said it had “threatened” to reinstate his past compensation and cancel his unvested shares.
Smith called on the board to convene a special committee to investigate the matter, calling it “grossly inappropriate, grossly unethical and a gross breach of fiduciary duty.” Ta.
Liability risks were a factor behind Reid and D’Amelio’s public support for Pfizer CEO Albert Bourla late Wednesday night, according to people familiar with the company and communications between the two former executives. It is said that it was.
Pfizer stock fell overnight following reports of a separation between the two executives, and opened Thursday morning trading down about 2.5%.
Starboard’s Smith said the activist contacted two executives and both companies expressed “concerns” about Pfizer’s direction under Bourla and offered to support Starboard’s turnaround campaign. .
Starboard did not respond to CNBC’s request for comment. A Pfizer spokesperson declined to comment.
Mr. Smith and Mr. Bourla are scheduled to meet in person next week, Mr. Smith said, confirming earlier reports. People familiar with Starboard’s thinking were not made aware of the topics of discussion, but people familiar with Starboard’s thinking have previously said that Pfizer’s disciplined cost structure and focus on mergers and acquisitions have suffered under Bourla’s leadership. He said he had fallen into.
