Publications
Publications
- March 2018
- HBS Case Collection
Sachem Head's Activism at Autodesk
By: Suraj Srinivasan and Quinn Pitcher
Abstract
In 2015, activist hedge fund Sachem Head Capital, led by founder Scott Ferguson, launched an activist campaign at computer aided design (CAD) software maker Autodesk. The activist campaign, waged mainly in private, was over Autodesk's lackluster financial performance, with Ferguson thinking that Autodesk's performance could improve with better cost management. Facing a proxy contest, Autodesk added Ferguson and two others to its board in exchange for a standstill agreement. Following two years of significantly improved performance, Ferguson eventually stepped down when longtime Autodesk CEO Carl Bass announced his retirement in February 2017. The case illustrates how even companies with stellar products can underperform and how benchmarking and financial analysis can help identify drivers of firm performance. The case describes how boards and investors can engage to improve governance and ultimately achieve sustainable performance objectives.
Keywords
Shareholder Activism; Investing; Activist Investing; CEO Turnover; Hedge Fund Activism; Benchmarking; Corporate Governance; Technology; Investment Activism; Performance Improvement; Management Succession; United States
Citation
Srinivasan, Suraj, and Quinn Pitcher. "Sachem Head's Activism at Autodesk." Harvard Business School Case 118-086, March 2018.
About The Author
