Impactive Capital Seeks to Replace WEX CEO on Board
Impactive Capital seeks to replace WEX CEO Melissa Smith on the board. The activist cites poor share performance and high pay ahead of the May annual meeting.
Activist investor Impactive Capital is seeking to replace the chief executive officer of WEX INC on the company's board of directors, according to sources and internal documents. The hedge fund, which operates in the United States, is pushing for a separation of the chief executive and board chair roles ahead of the annual shareholder meeting scheduled for May 5. While Impactive Capital is not attempting to remove Melissa Smith from her role as CEO, it argues that her presence on the board as chair has coincided with significant value destruction for investors.
The hedge fund, which owns approximately 5% of the information management services firm, has criticized the company’s governance and executive compensation. Impactive Capital claims that under the current leadership structure, the company's market value has decreased by $3.4 billion since late 2019. The firm notes that the stock performance has trailed behind primary competitors, including CORPAY INC and HEALTHEQUITY INC, as well as the S&P Mid-Cap Index over the same period.
