Twilio board shakeup prompts renewed activist scrutiny
Summary
For almost a year, Twilio has been under pressure from activist investors, who have urged the software vendor to shake up its board and even seek a potential sale of the company. The agreement resulted in Twilio, which sells communications software, giving a board seat to Andy Stafman, a partner at Sachem Head. "While this agreement represented incremental positive change, in our view it was not enough to prevent the continued entrenchment of the Board and ensure an end to Twilios persistent underperformance," Gupta said in a press release on Thursday. Gupta said Twilio "repeatedly rejected" proposals for governance improvements over months of engagement, and that "only under intense pressure" did the company resolve those issues. On March 11, less than a week after Twilio concluded the review, Sachem Head told the company it planned to nominate board candidates.
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