Twilio(TWLO) CNBC·2024-04-04 22:13Activist Investor Pressure and Board Changes - Twilio has faced pressure from activist investors for nearly a year, leading to significant board changes, including the resignation of founder and CEO Jeff Lawson in January [1] - Anson Funds, an activist group, has been pushing for changes at Twilio, including an overhaul of the board structure [1] - Twilio announced a settlement with Sachem Head, granting a board seat to Andy Stafman, a partner at Sachem Head [1] - Byron Deeter, a prominent venture capitalist and early investor, will be leaving the board, and Twilio plans to declassify its board, making all directors up for reelection annually [2] Activist Criticism and Governance Issues - Anson portfolio manager Sagar Gupta criticized Twilio's recent board changes as insufficient to address governance issues and persistent underperformance [2] - Gupta stated that Twilio repeatedly rejected governance improvement proposals and only resolved issues under intense pressure [2] - Anson highlighted unspecified related-party transactions between Twilio and Deeter's employer, Bessemer, which were detrimental to Twilio stockholders [4] Financial Performance and Shareholder Actions - Twilio shares are down 21% for the year, while the Nasdaq is up almost 7% [3] - Anson and Legion Partners, each owning less than 0.5% of Twilio, have pushed for changes, including an expanded share buyback program and an operational review [3] - Twilio completed the operational review in March, deciding against selling the business unit, Segment, and authorized a smaller share buyback than activists sought [4] Historical Transactions and Continued Influence - In 2018, Twilio acquired SendGrid, backed by Bessemer, for 4 billion in assets, is waging two other activist campaigns in Europe and plans to nominate board candidates at Twilio [4] - Anson will scrutinize all matters related to Twilio's strategy, operations, and governance moving forward [4]