trending Market Intelligence /marketintelligence/en/news-insights/trending/zz4hset5949ykaydawjfuq2 content esgSubNav
In This List

Shareholder says Safeguard Scientifics needs new management

Podcast

Street Talk Episode 87

Blog

A New Dawn for European Bank M&A Top 5 Trends

Blog

Insight Weekly: US banks' loan growth; record share buybacks; utility M&A outlook

Blog

Banking Essentials Newsletter 2021: December Edition


Shareholder says Safeguard Scientifics needs new management

A Safeguard Scientifics Inc. shareholder believes the company needs new senior management.

After President and CEO Steve Zarrilli announced that the board is finalizing new contracts for the Safeguard senior management team, Yakira Capital Management Inc. pushed for the postponement of those agreements in a letter to the company's board. Adopting a new compensation agreement for management while a company is in the midst of a proxy fight with shareholders is a breach of good corporate governance, the shareholder argued.

It also spoke out against what it called Safeguard's adoption of a "poison pill" strategy designed to prevent others, including eight of its top 10 shareholders, from acquiring more shares. Yakira claimed that this strategy is a "blatant effort to entrench the current board and management."

The hedge fund manager, which said it holds 2.5% of outstanding Safeguard shares, warned that it will pursue every means at its disposal to protect the best interests of all shareholders.