Starboard pushes for Autodesk CEO change and cost cuts

Activist investor Starboard Value has intensified its engagement with Autodesk's board, advocating for significant operational and financial improvements. Following a $500 million investment in Autodesk earlier this year, Starboard presented its findings to the board, emphasizing the need for cost reductions and a revised executive compensation structure. The firm believes these changes could enhance the company's margins by as much as 1,000 basis points. Starboard's scrutiny extends to Autodesk's investor communication practices, highlighting a concerning trend of unmet commitments since 2018 under CEO Andrew Anagnost's leadership. The investor's analysis indicates that Autodesk has consistently underperformed against benchmark indexes, with its shares returning 113% over the past seven years, compared to a staggering 362% for the Dow Jones US Software benchmark. This year, Autodesk's stock has struggled further, even amid a thriving technology sector. In response to Starboard's concerns, Autodesk has acknowledged ongoing discussions with the activist investor and has invited them to present their proposals to the full board. The company recently reassigned its finance chief, Deborah Clifford, to a new role as chief strategy officer following a misconduct investigation, which has raised additional questions about its governance. Despite Starboard's efforts to initiate a proxy fight, a Delaware judge temporarily halted these actions. The investor continues to highlight discrepancies in Autodesk's accounting practices, asserting that the company has not adequately addressed these issues. An Autodesk spokesperson reiterated the company's commitment to delivering value for all shareholders.