Ancora Issues Letter to Fellow Stockholders Recapping the Case for Meaningful Change Atop Blucora
Recaps the Data Points and Facts That Underscore the Need for Boardroom Change
Urges Stockholders to Recognize that Ancora’s Four-Member Slate is the Right Remedy at the Right Time
As a reminder, Ancora is seeking to elect
We recognize that you have heard a great deal from Ancora and
When assessing this key question, it is important to take into account that the synergy-focused strategy championed by the directors we are seeking to remove –
Blucoraembarked on this strategy in October 2015, its stock has appreciated only 7.43% while the Russell 2000 is up 72.10% and S&P Composite 1500 Financials is up 73.72%.1
Blucorareaffirmed its commitment to this strategy in October 2017, its stock is down 34.66%.2
Blucoraconducted a purported strategy session in late 2019 that included Mr. Aldrich, Ms. Proctor, Mr. MacIlwaineand Ms. Zappone, its stock is down 32.41%.3
We believe this long-term underperformance is a clear consequence of maintaining a Board that lacks accountability, meaningful ownership perspectives and sufficient expertise in critical areas, including the wealth management industry’s mass market and middle market. We contend this Board has also presided over poor succession planning, troubling compensation decisions and a fraying culture at Avantax. More recently, it has also begun miscasting our nominees in unprecedented ways.
To put a fine point on it,
We believe a thorough and objective review of each our director candidates will lead you to conclude that they represent the superior choices at this year’s Annual Meeting. Collectively, our nominees possess the exact mix of wealth management and tax advisory skills that the Board needs. They are also willing to completely align themselves with stockholders by taking 100% of their compensation in equity. The Ancora slate includes:
Mr. DiSantobrings a deep understanding of the wealth management industry’s various client markets. He also possesses important stockholder perspectives and valuable corporate governance insight, including with respect to appropriate incentive compensation for executives and Avantax financial professionals. We firmly believe his practical wealth industry experience and very strong alignment with other stockholders will make him an ideal addition to the Board.
Ms. Flynnhas held c-level marketing and communications roles at (NYSE: NYCB) and New York Community Bancorp, Inc. (NYSE: CFG). At each institution, she was responsible for developing and implementing marketing strategies for wealth management services, including tax planning and tax-efficient investment strategies. We firmly believe her background in marketing, internal communications and culture-building will add strong value to the Board, especially as it assesses issues at Avantax. Citizens Financial Group, Inc.
Mr. MacKinlayknows tax services and wealth management extremely well based on his two decades of experience at Cohen & Company, where he was National Managing Partner and drove hundreds of millions of dollars in client assets to SEQUOIA Financial Group through a wealth management joint venture. He also advised many public companies while at KPMG. We firmly believe his knowledge of the tax industry, coupled with his understanding of how it relates to wealth management, would be extremely additive to the Board.
Ms. Spacekis a long-time member of the leadership team at global investment management firm Owl Creek Asset Management, where she runs business development and investor relations and oversees relationships with institutional, high-net worth and individual clients. She also provided wealth management services to retail and private bank clients during her two-and-a-half years at ABN AMRO Bank. We believe her knowledge of business development, investor relations, the advisor mindset and fee structures will help the Board in many ways.
We also recognize that
As evidenced by the settlements Ancora recently reached at
In closing, thank you for your engagement and support throughout this contest. We hope you determine that the best way to protect the value of your investment at the 2021 Annual Meeting is to vote on the WHITE Proxy Card for the full Ancora slate.
1 Return metrics are calculated based on the closing trading prices on
2 Return metric is calculated based on the closing trading price on
3 Return metric is calculated based on the closing trading price on
4 Permission to quote was neither sought nor obtained. Emphases added by Ancora.