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.
