Aecom Announces Governance Agreement With Starboard Value

The change in management follows a governance agreement reached last month by AECOM`s board of directors with Starboard, which owns a 4% stake in the infrastructure company. Through Starboard ValueStarboard Value LP is a New York-based investment advisor with a focused and differentiated fundamental approach to investing primarily in publicly traded U.S. companies. Starboard invests in highly undervalued companies and actively collaborates with management teams and boards of directors to identify and implement opportunities to create value for the benefit of all shareholders. Friday, Peter A. AECOM Board Member Feld, Chairman of the CEO`s Research Committee, resigned due to his disagreements over the CEO`s search process and the board`s decision to proceed with a vote without notifying the research committee in advance. A tight timetable also argues in its favour. When announcing the new governance agreement, AECOM`s Board of Directors set a deadline for the election of a new Chief Executive Officer “until or before the 2020 AECOM Annual General Meeting”. While the company has yet to publicly announce this date, previous annual meetings were held in early March, which would leave little time for a comprehensive global search for a chief executive. AECOM`s journey as a professional services firm focused on engineering and project management will likely benefit from the appointment of the two new directors with direct industry experience, Wittmann said. Anaylst Mike Dudas, a partner at Vertical Research Partners, noted that the board`s decision was most likely based on the desire to make the process stable and closed in a period of unprecedented uncertainty for the industry and the economy as a whole.

We all agree that AECOM is a big company. However, much remains to be done to continuously improve strategy, operation and execution. AECOM is not today the market leader, which it can and should be. We should not celebrate victory, we should focus on the important work that awaits us to accelerate the improvement of execution, growth and value creation. I think it requires new energy in leadership and open-minded perspectives, unlike the pursuit of the same approach and way of thinking that has led to poor relative performance over the past five years. “By doing so without unanimous support, the Board of Directors decided to appoint Mr. Rudd as CEO, although some members of the CEO`s Research Committee continued to be motivated by highly qualified candidates who had shown considerable interest in the role and who had agreed to get in touch with the Board quickly about the luck of the management.” He wrote. I do not take lightly the decision to resign in this way. In the last ten years, I have served on thirteen boards of anonymous companies, and this is the first case where I have left a board of directors due to a fundamental disagreement with the guidelines or practices of that board of directors. In addition, in the context of today`s announcement, Engine Capital, a shareholder of AECOM, has committed to coordinating its actions in support of all directors appointed by AECOM at the 2020 Annual Meeting. . .