Cloud-computing company Citrix Systems said Chief Executive Mark Templeton would retire and separately said it had agreed to give activist investor Elliott Management a board seat.
Citrix CEO to Resign; Elliott Management Gets a Board Seat
The hedge fund had been pressing the company to make substantial changes.
Citrix Systems
The company’s shares rose 3.7 percent to $72.21 in trading after the bell on Tuesday.
Elliott, whose affiliated funds own about 7.5 percent of Citrix’s stock, has agreed to customary standstill, voting and other provisions for at least a year, Citrix said.
Elliott in June said Citrix should sell some units, cut costs and buy back shares to make up for six years of underperformance.
Citrix said on Tuesday Elliott’s Jesse Cohn would join its board, replacing Asiff Hirji, who would step down, effective immediately.
The company also agreed to search for another independent board member, mutually agreeable to Citrix and Elliott, who will replace a current board member when appointed.
Citrix said its board has formed an operations committee, which will work closely with management to focus on improving the company’s margins, profitability and capital structure.
Cohn and the mutually-agreed-upon new director will be a part of the committee, which will be led by current Citrix director Robert Calderoni.
Citrix said CEO Templeton would continue to serve as president and CEO until a successor was appointed.
(Reporting by Subrat Patnaik in Bengaluru; Editing by Savio D’Souza)
This article originally appeared on Recode.net.
See More:
