Activist investor Engine Capital pushes for new board at Upwork after taking 4% stake

Core Viewpoint - Activist investor Engine Capital, holding a 4% stake in Upwork, is advocating for significant changes to the company's board and addressing foundational issues affecting the platform [1][2]. Group 1: Board and Management Concerns - Engine Capital has raised concerns about the oversight of management by Upwork's board, questioning the effectiveness of CEO Hayden Brown, who has seen three management teams in four years [2]. - The activist investor highlighted the frequent turnover in Upwork's executive team, noting that Brown has had three CFOs in the same period, which raises concerns about strategic clarity and focus [2][3]. - Engine Capital criticized the lengthy tenures of several Upwork directors, including Chairman Thomas Layton and Greg Gretsch, suggesting that their long service may hinder effective governance [2][3]. Group 2: Recommendations for Improvement - Engine Capital urged Upwork to simplify its platform to better compete with rival Fiverr, cut costs, and expand its enterprise business [3]. - The activist investor pointed out the lack of staffing industry experience among Upwork's directors, which may impact the board's effectiveness in guiding the company [3]. Group 3: Stock Performance - Upwork's shares have declined by 37% this year and are down approximately 85% from their peak in 2021, following a surge during the pandemic due to increased demand for freelancing services [4].