Core Viewpoint - Irenic Capital Management has acquired a significant stake in Workiva, advocating for operational improvements, board refreshment, and potential sale considerations for the financial reporting software company [1][3]. Group 1: Stake and Management Engagement - Irenic owns approximately 2% of Workiva and has engaged in multiple discussions with management regarding potential changes to enhance the company's performance, which is valued at $4.7 billion [1][3]. - The hedge fund is among the top 10 investors in Workiva, and its push for changes follows the company's recent investor day [5]. Group 2: Proposed Changes - Irenic is urging Workiva to eliminate its dual-class share structure, require annual elections for all board members, and add two new members, including Irenic executive Krishna Korupolu [2]. - The hedge fund is also advocating for a review of strategic alternatives under new board oversight, leveraging the strong interest from private equity in financial software companies [3]. Group 3: Financial Performance Concerns - Workiva's stock price fell by 5.2% on September 9, raising concerns among investors about management's commitment to profitability and market efficiency [6]. - Since Julie Iskow took over as CEO in April 2023, Workiva's stock has decreased by nearly 19%, contrasting with a 20% average gain for its peers and a 70% increase for the S&P 500 during the same timeframe [7]. - Irenic has expressed frustration over Workiva's financial performance, noting that the company trades at a 27% discount compared to application software competitors like Workday and ServiceNow [8].