"Under the agreement with Elliott Management, HPE will grant one possibly two seats on its board, a move aimed at addressing stock underperformance."
"Elliott's involvement follows a $1.5 billion stake in HPE and raises the potential for significant management changes or a corporate breakup to improve value."
"Robert Calderoni will join the HPE board as appointed by Elliott, bringing 30 years of tech experience, set to lead a new Strategy Committee."
"Pat Russo expressed optimism about Calderoni's contribution, noting the board expects collaboration to drive increased shareholder value."
Hewlett Packard Enterprise has entered a one-year agreement with Elliott Management, providing the activist investor with one or two seats on the board. This decision comes amid HPE's stock decline of over 5% this year, intensifying pressure on CEO Antonio Neri. The arrangement gives the chance for management changes or potential divestitures. Elliott's investment of $1.5 billion and complaints regarding stock performance led to this agreement. New board member Robert Calderoni, with extensive tech experience, will chair a strategic options subcommittee to enhance company value.
#hewlett-packard-enterprise #elliott-management #corporate-governance #stock-performance #board-of-directors
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