Alta Fox reduces slate and targets chair ahead of Hasbro vote
Hasbro shareholder Alta Fox Capital Management lowered its director slate to three nominees from five, and also turned its activist campaign toward a specific target at the toy and gaming company: board chair Richard Stoddart.
Why it matters: If Hasbro shareholders elect Alta Fox nominees to the board, the new directors are expected to push the fund's plan to force the company into spinning off its "Wizards of the Coast" division, which oversees Dungeons & Dragons as well as other gaming franchises like Magic: The Gathering.
Details: In addition to reducing its slate, Alta Fox is now publicly going after the leadership of Stoddart, who transitioned to chairman in February after serving as the interim CEO for a few months.
- Alta Fox says Stoddart is unqualified to lead the organization and has a record of destroying value.
- The fund points to his role as CEO of Innerworkings, a marketing services company, where Alta Fox says the company's stock fell 68% during his tenure.
- Alta Fox also wants to replace Lisa Gersh, the head of the compensation committee, and Edward Philip, who serves on the boards of several other companies.
What they're saying: Hasbro has rejected Alta Fox's nominees thus far, and believes its board nominees are high quality, including the two it tapped earlier this month.
- Hasbro's proxy says its board represents a "strong group of proven leaders and executives with experience across a wide range of industries, including digital gaming, entertainment/ media and consumer products."
What’s next: The result of this standoff will be decided by a shareholder vote on June 8 at the AGM (unless a settlement emerges in the meantime).