Marvell Technology agrees to Starboard Value’s board picks
WASHINGTON (AP) — Chipmaker Marvell Technology Group has agreed to appoint four directors named by activist investor Starboard Value and has begun its search for a new CEO.
Under terms of the agreement, the Hamilton, Bermuda-based company will elect Peter Feld, Richard Hill and Oleg Khaykin to the board. Starboard will designate an additional independent director to be added later, subject to board approval. Marvell will also elect Robert Switz to the board.
Feld, Hill, Khaykin and the additional independent director will stand for election as nominees of Marvell at the annual meeting of shareholders, together with Switz and incumbent independent directors Juergen Gromer, John Kassakian, Arturo Krueger and Randhir Thakur. The appointments will bring the total number of directors to 11, four of whom will have been appointed by Starboard.
Earlier this month Marvell announced that founder and CEO Sehat Sutardja and his wife, Weili Dai, the company’s president, were being terminated from their management positions due to accounting irregularities, but that they would continue as directors.
Marvell shares rose about 1.5 percent in midday trading. Shares in the company are up almost 15 percent in 2016, but have fallen about 28 percent in the past year.
Starboard, which owns about 6.5 percent of Marvell’s outstanding common stock, is also leading a shareholder mutiny at Yahoo, which announced Wednesday that it would add four new Starboard-appointed directors, including the CEO of Starboard.
Starboard has recently led overhauls of the boards at drugmaker Depomed and Darden Restaurants-owned Olive Garden and pushed for the department store operator Macy’s to split its real estate assets into separate companies.