Comtech and Shareholder Outerbridge Agree on Board of Directors
Comtech Telecommunications and shareholder Outerbridge Capital Management have come to an agreement on the company’s board of directors.
Outerbridge has agreed to support Comtech’s nomination of Judy Chambers and Larry Waldman to the board. Comtech has agreed to appoint Outerbridge’s nominee Wendi Carpenter, retired U.S. Navy rear admiral. In addition, the board will also appoint an additional independent director, agreed upon by both Comtech and Outerbridge, who are working with a search firm to identify candidates.
Comtech will soon have previously announced changes to its board, when new CEO Michael Porcelain joins the board, and Mark Quinlan, co-founder of shareholder White Hat Capital Partners LP joins the board. Once all of these changes take place Comtech’s board of directors will consist of nine directors, including six independent directors appointed within the last two years.
This agreement comes after a public dispute between the company and its shareholder, who owns approximately 4.95% of Comtech stock. Outerbridge had expressed a lack of faith in the management team and the board, and Comtech accused Outerbridge of misrepresenting the company’s financial performance.
“This is the right outcome for Comtech shareholders,” said Porcelain, incoming CEO. “Comtech and Outerbridge have recently engaged in constructive discussions and this agreement puts us squarely on a path forward that is consistent with our shared desire to accelerate value creation.”