NEW YORK : An activist investor with a large stake in Envestnet Inc. plans to ask for board seats to push the financial technology company to improve its stock price by cutting costs and overhauling pay, two people familiar with the matter said.
Impactive is now ratcheting up the pressure on Envestnet, which provides technology and automation software for financial advisors and banks. In a letter to the board, seen by Reuters, Impactive wrote it sees"no choice but to consider nominating a slate of directors" to help correct a string of failures, including a sluggish share price.
Impactive criticized the board for failing to evaluate what the returns would be on the spending."In the 30 press releases the Company has issued this year to announce acquisitions, partnerships, initiatives, and new products, there has not been one mention of profits, costs, or returns," the letter said.