Elliott is pushing for more female directors as part of its campaign at Commvault. That kind of demand should be more common.
Activist investors have the power to get more women on corporate boards, should they choose to use it.
Elliott Management Corp. called this week for operational changes and a board overhaul at data-management software company Commvault Systems Inc. In a letter to the board, Elliott partner Jesse Cohn and portfolio manager Jason Genrich had many criticisms of a management strategy that's led to the erosion of Commvault's profitability and share price, but one point in particular stood out: the lack of diversity among directors of the $3 billion company. All but one Commvault board member is a man, and the sole woman was added only in February.
The average S&P 500 company fills about 80 percent of its director seats with men, while only 5 percent have a female CEO, according to data compiled by Bloomberg. Institutional holders are starting to become more vocal about why that's problematic, not just culturally but financially. And if activist investors hope to win them to their cause, it's wise to care and talk about these issues, too.
www.bloomberg.com
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